Modification 501 slides for Workgroup
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Transcript of Modification 501 slides for Workgroup
Modification 501 slides for Workgroup
Lesley Ramsey
Matthew Hatch
22
Background
Currently, commercial arrangements for gas flows at Bacton ASEP, (both interconnectors and off shore production) are covered by the provisions of the UNC.
EU Codes introduce rules to apply to IPs
To ensure CAM/CMP procedures are only applied at Interconnection Points (IPs), the existing BACTON ASEP will need to be split into two new ASEPS
Bacton UKCS ASEP
Bacton IP ASEP
Existing UNC processes would continue to apply at the new Bacton UKCS ASEP
CAM/CMP process will apply at Bacton IP ASEP
EU Regulation -requires changes to capacity arrangements
Bacton Terminal
UKCSSub Terminals
BBLST
IUKST
Continues to be covered by GB UNC
To be covered byEU Regulation
FIELDProduction
FIELDProduction
FIELDProduction
FIELDProduction
44
Requests are aggregated and compared
to obligated levels
Are aggregate level below obligated levels
Shippers indicate where existing Bacton holdingsare required
[June 2015]NGG issue Invitation Letter
Requirement to split existing holdings between the two new ASEPs
Further invitation letter to again indicate where
existing holdings requiredAre aggregate level below
obligated levels
Requests allocated in accordance with Shipper requests
Requests pro rated
YES
NO
NO
YES
55
Main principle
Following the reallocation of existing capacity between the 2 Bacton ASEPs Users will :
hold the same amount of NTS Entry Capacity in aggregate (at the two new Bacton ASEPs) as they currently hold at the existing Bacton ASEP
be liable for the same costs at the 2 new Bacton ASEPs as they currently are at the existing Bacton ASEP (under the current charging methodology)
Proposed timeline for the Bacton Reallocation process
Feb 2015 AMSEC
auction held
Feb Mar Apr May Jun Jul Aug Sep NovOct2015
Mar 2015 QSEC
auction held Mar 2015 QSEC
auction allocated
Ex
isti
ng
UN
C p
roc
es
se
sN
ew
pro
ce
ss
es 10 days after
QSEC auction is allocated
Invite Users
RMT&TSEC and Daily auctions
continue for each month Need to
suspend RMT&TSEC and Daily
auction for Nov at Bacton
ASEP
First Capacity
Reallocation
Final Capacity
Reallocation if necessary
Write out with
reallocations from final process if necessary
Write out with
reallocations (where
determined) hold second
process if necessary
CA
M im
ple
me
nte
d
Need to stop Capacity
Transfers at Bacton once new process
begins
6
Inform Users of any new
charge types or changes to invoices
Inform Users of new ASEPs
following Ofgem direction of GT
Licence changes
Once Bacton Reallocation process is
complete, re-instate
relevant UNC processes
Jan
77
Obligated levels at Bacton Entry Point
Obligated level of capacity at the existing Bacton ASEP (Table 6 of Special Condition 5F of GT Licence) is :
1783.4 GWh/d
The creation of 2 new points and obligated levels will require Ofgem to issue a Section 23 notice. The October 2013 Ofgem Open letter suggested the following:
Bacton UKCS 481.4 GWh/d and
Bacton IP 1302.0 GWh/d
The final values in the GT licence could be different, but the Ofgem Open letter values have been used in the following examples
7
8
UNC processes to be suspended
From [June – October 2015], whilst the reallocation process is taking place, the following processes will be suspended
Transfers of NTS Entry Capacity (TPD B5) for the period 01 November 2015 onwards
New Capacity Constraint Management agreements (TPD B2.8) for the period 01 November 2015 onwards
There will be no October 2015 RMT&TSEC auction for November 2015 NTS Entry Capacity at Bacton ASEP
There will be no relevant daily auctions held in October 2015 for November 2015 NTS Entry Capacity
99
Invitation Letter
Invitation letter issued requesting that Users signal how they want their existing registered NTS capacity at Bacton to be reallocated between the two new ASEPs
Issued following Feb 2015 AMSEC and Mar 2015 QSEC
Invitation letter will contain
User’s current capacity holdings at existing Bacton ASEP
A proforma for the User to indicate quantity of capacity to be allocated at each new ASEP
NTS Entry Capacity requested at the two new ASEPs should be equal to the existing holdings held at the Bacton ASEP for each relevant period
Completed profoma to be faxed back to NGG by [26 June 2014]
1010
Existing holdings
10
kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
User A 400,000,000 400,000,000 10,000,000 10,000,000 400,000,000 400,000,000 10,000,000 10,000,000
User B 200,000,000 200,000,000 10,000,000 10,000,000 200,000,000 200,000,000 10,000,000 10,000,000
User C 300,000,000 400,000,000 10,000,000 10,000,000 300,000,000 300,000,000 10,000,000 10,000,000
User D 100,000,000 300,000,000 10,000,000 10,000,000 100,000,000 100,000,000 0 0
TOTAL 1,000,000,000 1,300,000,000 40,000,000 40,000,000 1,000,000,000 1,000,000,000 30,000,000 30,000,000
Example of Users holdings over all the QSEC auctions over the quarters 1 October 2016 until 30 September 2018 are as per the table below:
11
Reallocation
If the Initial Capacity Reallocation fully reallocates all the existing Registered NTS Entry Capacity to the two new ASEPs then
NGG will reallocate on Users behalf as per Users request
User will not be required to undertake any actions
If Users do not respond by the required date then
the default will be reallocation between the Bacton UKCS ASEP and the Bacton IP ASEP in the same proportion as the Obligated levels at the two ASEPs.
121212
Eg -Requests aggregated and compared to baselines
The aggregate requested level at the UKCS ASEP are above the Obligated level of 481.4Gwh
Initial Capacity ReallocationIP kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
User A 200,000,000 200,000,000 5,000,000 5,000,000 200,000,000 200,000,000 5,000,000 5,000,000User B 40,000,000 40,000,000 2,000,000 2,000,000 40,000,000 40,000,000 2,000,000 2,000,000User C 120,000,000 160,000,000 4,000,000 4,000,000 120,000,000 120,000,000 4,000,000 4,000,000User D 60,000,000 180,000,000 6,000,000 6,000,000 60,000,000 60,000,000 0 0
Total 420,000,000 580,000,000 17,000,000 17,000,000 420,000,000 420,000,000 11,000,000 11,000,000
UKCS kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A 200,000,000 200,000,000 5,000,000 5,000,000 200,000,000 200,000,000 5,000,000 5,000,000User B 160,000,000 160,000,000 8,000,000 8,000,000 160,000,000 160,000,000 8,000,000 8,000,000User C 180,000,000 240,000,000 6,000,000 6,000,000 180,000,000 180,000,000 6,000,000 6,000,000User D 40,000,000 120,000,000 4,000,000 4,000,000 40,000,000 40,000,000 0 0
Total 580,000,000 720,000,000 23,000,000 23,000,000 580,000,000 580,000,000 19,000,000 19,000,000
TOTAL 1,000,000,000 1,300,000,000 40,000,000 40,000,000 1,000,000,000 1,000,000,000 30,000,000 30,000,000
Above Obligated level
For the other four quarters, the User requests will be allocated as requested as the aggregate requests are below the Obligated levels
Obligatd level 1302Gwh
Obligatd level 481.4Gwh
13
Final Capacity Reallocation
Where Users have signalled an aggregate level of capacity > obligated level for any Months/Quarters to the two new ASEPs
NGG will issue on [3rd August 2015] another Bacton capacity reallocation invitation for relevant months/quarters to give Users another opportunity to indicate where they would wish their Registered NTS Entry Capacity rights to be held in future
This final capacity reallocation will take place by [14th September 2015]
The whole process is anticipated to be completed by [28th September 2015].
141414
Final Capacity Reallocation
After the Final Capacity Reallocation, there are still three quarters where the Users aggregate requested level of capacity at the UKCS ASEP is above the Obligated level (481.4Gwh), so pro-ration will take place for those quarters
Example User requests
Final Capacity ReallocationIP kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
User A 200,000,000 200,000,000 5,000,000 5,000,000 200,000,000 240,000,000 5,000,000 5,000,000User B 80,000,000 80,000,000 4,000,000 4,000,000 80,000,000 100,000,000 4,000,000 4,000,000User C 120,000,000 160,000,000 4,000,000 4,000,000 120,000,000 120,000,000 4,000,000 4,000,000User D 60,000,000 180,000,000 6,000,000 6,000,000 60,000,000 60,000,000 0 0
Total 460,000,000 620,000,000 19,000,000 19,000,000 460,000,000 520,000,000 13,000,000 13,000,000
UKCS kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A 200,000,000 200,000,000 5,000,000 5,000,000 200,000,000 160,000,000 5,000,000 5,000,000User B 120,000,000 120,000,000 6,000,000 6,000,000 120,000,000 100,000,000 6,000,000 6,000,000User C 180,000,000 240,000,000 6,000,000 6,000,000 180,000,000 180,000,000 6,000,000 6,000,000User D 40,000,000 120,000,000 4,000,000 4,000,000 40,000,000 40,000,000 0 0
Total 540,000,000 680,000,000 21,000,000 21,000,000 540,000,000 480,000,000 17,000,000 17,000,000
TOTAL 1,000,000,000 1,300,000,000 40,000,000 40,000,000 1,000,000,000 1,000,000,000 30,000,000 30,000,000
Above Obligated level
The requests in the quarter beginning 1 January 2018 will now be allocated in full as they are below the two Obligated levels
Obligatd level 1302Gwh
Obligatd level 481.4Gwh
15
Pro-ration Example
Previous slide shows UKCSoversubscribed, compared to new baseline of 481,400,000kwh(for period 1.10.16)
User A 200,000,000
User B 120,000,000
User C 180,000,000
User D 40,000,000
Total 540,000,000
Pro-ration is applied (User Bids/ Total User Bids x Baseline = Prorated allocation)
User A 178,296,296
User B 106,977,778
User C 160,466,667
User D 35,659,259
Total 481,400,000
161616
Pro-ration
User requests are pro-rated back to the Obligated level at the UKCS ASEP in the three quarters highlighted and the remaining amount of requested NTS Entry Capacity is reallocated to the IP ASEP
Example User requests through Bacton Reallocation Process - Pro-ration Process
Need to pro-rate in 3 QuartersIP kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
User A 221,703,704 258,411,765 5,000,000 5,000,000 221,703,704 240,000,000 5,000,000 5,000,000User B 93,022,222 115,047,059 4,000,000 4,000,000 93,022,222 100,000,000 4,000,000 4,000,000User C 139,533,333 230,094,118 4,000,000 4,000,000 139,533,333 120,000,000 4,000,000 4,000,000User D 64,340,741 215,047,059 6,000,000 6,000,000 64,340,741 60,000,000 0 0
Total 518,600,000 818,600,000 19,000,000 19,000,000 518,600,000 520,000,000 13,000,000 13,000,000
UKCS kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A 178,296,296 141,588,235 5,000,000 5,000,000 178,296,296 160,000,000 5,000,000 5,000,000User B 106,977,778 84,952,941 6,000,000 6,000,000 106,977,778 100,000,000 6,000,000 6,000,000User C 160,466,667 169,905,882 6,000,000 6,000,000 160,466,667 180,000,000 6,000,000 6,000,000User D 35,659,259 84,952,941 4,000,000 4,000,000 35,659,259 40,000,000 0 0
Total 481,400,000 481,400,000 21,000,000 21,000,000 481,400,000 480,000,000 17,000,000 17,000,000
TOTAL 1,000,000,000 1,300,000,000 40,000,000 40,000,000 1,000,000,000 1,000,000,000 30,000,000 30,000,000
Original Bacton ASEP holding re-allocated to other pointRemember bids need to end up >= Minimum Eligible Amount of 100,000
Pro-rate as above Obligated level
17
Charges
Users will be liable for the same charges (at the two new Bacton ASEPs) as they currently are at the existing Bacton ASEP under the current charging methodology
A weighted average price for the capacity for the relevant periods will be used (calculated for each User)
Note: original clearing price of relevant auction
181818
Assumed QSEC clearing prices to calculate WAP
QSEC Clearing prices
p/kWh/d 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
QSEC1 0.0008 0.0012 0.0001 0.0001 0.0008 0.0008 0.0001 0.0001
QSEC2 0.0007 0.0007 0.0007 0.0007 0.0007 0.0007 0.0007 0.0007
QSEC3 0.0012 0.0010 0.0005 0.0005 0.0010 0.0010 0.0005 0.0005
Consider the quarters from 1 October 2016 until end of September 2018
The following table shows example clearing prices which were set in the three different QSEC auctions:
191919
Assumed User holdings at Bacton ASEP
Example User detailed holdings at existing Bacton ASEP
kWh/day 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A QSEC1 100,000,000 100,000,000 5,000,000 5,000,000 100,000,000 100,000,000 5,000,000 5,000,000
QSEC2 200,000,000 200,000,000 5,000,000 5,000,000 200,000,000 200,000,000 5,000,000 5,000,000QSEC3 100,000,000 100,000,000 0 0 100,000,000 100,000,000 0 0Total 400,000,000 400,000,000 10,000,000 10,000,000 400,000,000 400,000,000 10,000,000 10,000,000
User B QSEC1 100,000,000 100,000,000 5,000,000 5,000,000 100,000,000 100,000,000 5,000,000 5,000,000QSEC2 0 0 0 0 0 0 0 0QSEC3 100,000,000 100,000,000 5,000,000 5,000,000 100,000,000 100,000,000 5,000,000 5,000,000Total 200,000,000 200,000,000 10,000,000 10,000,000 200,000,000 200,000,000 10,000,000 10,000,000
User C QSEC1 50,000,000 100,000,000 5,000,000 5,000,000 50,000,000 50,000,000 5,000,000 5,000,000QSEC2 100,000,000 100,000,000 0 0 100,000,000 100,000,000 0 0QSEC3 150,000,000 200,000,000 5,000,000 5,000,000 150,000,000 150,000,000 5,000,000 5,000,000Total 300,000,000 400,000,000 10,000,000 10,000,000 300,000,000 300,000,000 10,000,000 10,000,000
User D QSEC1 0 0 0 0 0 0 0 0QSEC2 45,000,000 150,000,000 5,000,000 5,000,000 45,000,000 45,000,000 0 0QSEC3 55,000,000 150,000,000 5,000,000 5,000,000 55,000,000 55,000,000 0 0Total 100,000,000 300,000,000 10,000,000 10,000,000 100,000,000 100,000,000 0 0
TOTAL 1,000,000,000 1,300,000,000 40,000,000 40,000,000 1,000,000,000 1,000,000,000 30,000,000 30,000,000
The User holdings in the three QSEC auctions over that period are shown in the table below:
202020
Assumed User holdings at Bacton ASEP - £s
Example User detailed holdings at existing Bacton ASEP
£s 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A QSEC1 73,600 108,000 455 460 73,600 72,000 455 460
QSEC2 128,800 126,000 3,185 3,220 128,800 126,000 3,185 3,220QSEC3 110,400 90,000 0 0 92,000 90,000 0 0Total 312,800 324,000 3,640 3,680 294,400 288,000 3,640 3,680
User B QSEC1 73,600 108,000 455 460 73,600 72,000 455 460QSEC2 0 0 0 0 0 0 0 0QSEC3 110,400 90,000 2,275 2,300 92,000 90,000 2,275 2,300Total 184,000 198,000 2,730 2,760 165,600 162,000 2,730 2,760
User C QSEC1 36,800 108,000 455 460 36,800 36,000 455 460QSEC2 64,400 63,000 0 0 64,400 63,000 0 0QSEC3 165,600 180,000 2,275 2,300 138,000 135,000 2,275 2,300Total 266,800 351,000 2,730 2,760 239,200 234,000 2,730 2,760
User D QSEC1 0 0 0 0 0 0 0 0QSEC2 28,980 94,500 3,185 3,220 28,980 28,350 0 0QSEC3 60,720 135,000 2,275 2,300 50,600 49,500 0 0Total 89,700 229,500 5,460 5,520 79,580 77,850 0 0
TOTAL 853,300 1,102,500 14,560 14,720 778,780 761,850 9,100 9,200
The following table shows the charges which the Users are liable for from each of the QSEC auctions:
212121
Assumed User holdings at Bacton – User WAPs
So the individual User weighted average prices can be calculated from the original QSEC auction clearing prices for the relevant periods
And these WAPs will be used during the Bacton Reallocation process
at both the Bacton UKCS and Bacton IP ASEPs
Example User detailed holdings at existing Bacton ASEP
p/kWh/d 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018
WAP User A 0.0009 0.0009 0.0004 0.0004 0.0008 0.0008 0.0004 0.0004
User B 0.0010 0.0011 0.0003 0.0003 0.0009 0.0009 0.0003 0.0003
User C 0.0010 0.0010 0.0003 0.0003 0.0009 0.0009 0.0003 0.0003
User D 0.0010 0.0009 0.0006 0.0006 0.0009 0.0009 0.0000 0.0000
222222
Results of the Reallocation Process £s
Users are therefore liable for the same financial commitment for their NTS Entry Capacity rights at the two new ASEPs as they were at the original Bacton ASEP
Original User holdings at existing Bacton ASEP
£s 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A 312,800 324,000 3,640 3,680 294,400 288,000 3,640 3,680User B 184,000 198,000 2,730 2,760 165,600 162,000 2,730 2,760User C 266,800 351,000 2,730 2,760 239,200 234,000 2,730 2,760User D 89,700 229,500 5,460 5,520 79,580 77,850 0 0
Total 853,300 1,102,500 14,560 14,720 778,780 761,850 9,100 9,200
Reallocated User holdings
£s 01/10/2016 01/01/2017 01/04/2017 01/07/2017 01/10/2017 01/01/2018 01/04/2018 01/07/2018User A IP 173,372 209,314 1,820 1,840 163,174 172,800 1,820 1,840
UKCS 139,428 114,686 1,820 1,840 131,226 115,200 1,820 1,840Total 312,800 324,000 3,640 3,680 294,400 288,000 3,640 3,680
User B IP 85,580 113,897 1,092 1,104 77,022 81,000 1,092 1,104UKCS 98,420 84,103 1,638 1,656 88,578 81,000 1,638 1,656
Total 184,000 198,000 2,730 2,760 165,600 162,000 2,730 2,760
User C IP 124,092 201,908 1,092 1,104 111,255 93,600 1,092 1,104UKCS 142,708 149,092 1,638 1,656 127,945 140,400 1,638 1,656Total 266,800 351,000 2,730 2,760 239,200 234,000 2,730 2,760
User D IP 57,714 164,511 3,276 3,312 51,202 46,710 0 0UKCS 31,986 64,989 2,184 2,208 28,378 31,140 0 0Total 89,700 229,500 5,460 5,520 79,580 77,850 0 0
TOTAL 853,300 1,102,500 14,560 14,720 778,780 761,850 9,100 9,200