1. Transmission Workstream – Partial Assignment
03 September 2009

2. Background
Mod 0195AV introduced the concept of assigning NTS Exit (Flat) Capacity from one User to another at the same NTS Exit Point.
All or nothing
Permanent unless assigned to another User at a later date
Registered Capacity only i.e. does not include any trades procured but does include any capacity that has been traded out
Liabilities become responsibility of Assignee (buying User)
ExCR (rule 70) details impact of Assignment on User commitment.

3. ExCR rule 70
“…Where a User is registered with capacity that was initially:
reserved by a Reservation Party via an ARCA; or
registered to another User and has been assigned to the other User;
the User Commitment will transfer to that new User. The new User’s User
Commitment shall be to remain the registered User of the additional capacity
allocated plus any existing capacity allocated to that User at that NTS Exit Point
for a period starting on the later of either; …”

4. Mod Benefits
National Grid NTS believe that this Proposal enhances and builds upon the Assignment / Trading arrangements introduced as part of Modification Proposal 0195AV.
Enables efficient utilisation of NTS Exit Flat Capacity reducing the possibility of National Grid NTS receiving unnecessary and inefficient signals
Enables Users to better reflect User changes at NTS Exit Points with more than one User.
Provides greater flexibility to Users
May reduce daily NTS Exit Flat Capacity requests, reducing National Grid NTS’s administrative workload

5. An NTS view of partial assignment …..
Remove Annual from partial assignment, shorter term requirements can be met via trading.
Detail impact on User Commitment
In National Grid NTS’s view no change to current ExCR i.e. if Assignee has existing capacity with no User Commitment but assigned quantity has User Commitment associated to it the whole amount becomes User Committed. Ensures User Commitment applied consistently to avoid principles being undermined.
Options and forwards rules i.e. are they assigned first or last or don’t allow these quantities to be assigned or no assignment allowed?
National Grid NTS’s initial view is to assign last i.e. User holds 10, has a 2 unit forward contract, assign 8 the 2 forward stays, if assign 9 – 1 stays but 1 unit of the forward is also assigned.
Allow assignments of trades that form part of a Users registered holding i.e. those that have been sold.
Rules would need to be developed in terms of when the trade was assigned
Re-state existing timescales for Assignment process, as per 0195A

6. Mod 263 – NTS’s understanding
The following is based on National Grid NTS’s understanding from the Modification Proposal and discussions at workstream. Our view is that Mod263 and the impact of partial assignment is significantly different to full assignment.
Principle to introduce partial assignment
Assign Annual prior to Enduring Annual
Need to specify whether / which part of User Commitment is moved
Permanent Assignment
Will not include any trades / not allow any assignment when a trade has been registered ?
Silent on forwards and options and the process timeline

7. Summary Table – Partial Assignment
National Grid
Mod 263
Comment
Assign Annual  
User Commitment Assigned + Existing holding
Current Proposal would require “tagging”
Trades Assigned
Trade Sells
Forwards and Options Assigned ?
Not included in Mod 263 at present

8. Systems – potential impacts
Modification 263 would require capacity to be “tagged” to enable partial assignment
Required for User Commitment
Introduces complexity
Initial National Grid NTS view of costs (TBC)