1. Gas Transmission Charging Review: update Transmission Workgroup Alena Aliakseyeva/Victoria Volossov 30/04/14

2. Overview GTCR – progress so far and next steps GTCR technical work group 2

3. GTCR progress (1): literature review “Principles of tariff setting and revenue recovery for network monopolies in the absence of significant network capacity constraints, including questions about long-term and short-term access pricing” 3

4. 4 GTCR progress (2): policy options Core options : 1.Capacity price – review discounts 2.Payable price – adjustments 3.New regime: floating tariffs

5. 5 GTCR next steps Further policy developments Modelling of policy options – summer Anticipate steer to industry – late autumn/in time for TAR NC comitology

6. Purpose – Transparency in policy development process – Industry engagement in policy development process Objective – Support the development of the technical aspects of options for change of gas transmission charges Commitment – Time: 4-5 fortnightly meetings, ~2hrs, June – July – Maximum of 8 industry members (rotating?) 6 GTCR technical group

7. Role – Technical advisory group/sounding board – Help identify/develop potential alternative charging arrangements – Output: Short-term: minutes/conclusions of the meetings (GTCR website) Long-term: group’s summary/conclusions report? TBD. How will it work? – Chair + minutes: Ofgem – 1 st meeting: agree topics, terms of reference, [TBD: pen-holder for report] – Location: Ofgem, Millbank 7 GTCR technical group