RMTTSEC – Rolling Monthly Trade and Transfer System Entry Capacity Auction

Transmission Workstream, 2 April 2009

2

Agenda

Compare Results for Winter (Nov – Mar) 07/08 to

Winter (Nov – Mar) 08/09

Future RMTTSEC Auctions

– Online processes

– Review update of Methodology

3

Capacity Allocated Winter 07/08

Capacity Allocated (GWh)

Location  Nov-

07 Dec-07 Jan-08 Feb-08 Mar-08

 Barrow  Allocated from same ASEP

2 2 2 2 0

    Transfer & Trade 0 0  0 0 0

Easington   Allocated from same ASEP 0 0 0 0 0

    Transfer & Trade 85.39 85.83 85.83 85.83 85.83

Isle of Grain   Allocated from same ASEP 42.33 0 0 0 0

    Transfer & Trade 0 0  0 0 0

Teesside   Allocated from same ASEP 0  0 0 0 0

    Transfer & Trade 23.82 48.32 42.62 41.22 0

• Single Auction (2 rounds) run in October for whole Winter 07/08

• Run in addition to RMSEC

• 4 ASEPs allocated capacity

4

Capacity Allocated Winter 08/09

Capacity Allocated ( GWh)

Location Stage  Nov-

08Dec-

08Jan-

09Feb-

09Mar-

09

Easington   

1

Surrendered

Unsold

4.9

0

4.4

0

0

0

0

0

7.9

0

2 Trade 9.8 83.1 102.3 42.2 17.3

2 Transfer 0 0 0 0 0

  Total 14.7 87.5 102.3 42.2 25.2

Hatfield Moor   

1

Surrendered

Unsold

0

10.1

0

7.2

0

1.3

0

4.2

0

7.2

2 Trade 9.7 7.4 7.5 7.5 6.8

2 Transfer 0 0 0 0 0

  Total 19.8 14.6 8.8 11.7 14

• RMTTSEC allocated at 8 ASEPs

• All Allocations met by unsold/surrendered at the ASEP except :

• Easington

• Hatfield Moor Storage

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Comparison summaryWinter 07/08

Winter 08/09

All bid satisfied

Unable to satisfy all bidsAdditional capacity made available atsome ASEPs requesting firm capacity

Stimulated secondary trading Stimulated secondary trading

Aggregate capacity allocations atEasington and Teesside exceeded obligated levels

Stimulated secondary trading

Aggregate capacity allocations atEasington and Hatfield Moor Storage exceeded obligated levels

Winter 08/09

Specific Exchange Rates determined in advance (1:1 within zone within limits and up to 19.5:1 out of zone)

All at 1:1 Exchange Rates

Users at four ASEPs obtained additional capacity , two via T&T

Users at eight ASEPs obtained additional capacity, two via T&T

Capacity allocated for each of the five months for which it was available

Capacity allocated for each of the five months for which it was available

One single (2 rounds) auction Auctions held monthly in two stages

All bids satisfied Additional capacity made available atall ASEPs requesting firm capacity

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CONCLUSION

The RMTTSEC has been successful in moving

capacity to where it is valued most

Through undertaking Exchange Rate analysis after

the auction , it has been possible to provide the best

Exchange Rates

The process has worked smoothly and is now fully

embedded into the commercial regime.

It also provides an additional “secondary trading”

mechanism

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Future RMTTSEC Auctions

No changes proposed to Methodology Statement

National Grid required to consult annually on MS

Expected implementation of online system process

17th May 2009

Shortening of process timeline by 5 days

Surrender window opens approx 23 Business days before

month end (currently approx 28 Business days)

RMTTSEC bid window opens approx 15 Business days

before month end (currently approx 20 Business days)

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Results of RMTTSEC can be found

www.nationalgrid.com/uk/Gas/Data/CA/reports/RMSEC.

htm

Any Queries regarding RMTTSEC Auction contact

the Entry Capacity Auctions team:-

- on telephone number 01926 654057

- or email on capacityauctions@uk.ngrid.com