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Code Governance Review UNC Modification Proposals

Code Governance Review UNC Modification Proposals. Ritchard Hewitt - National Grid NTS. Background – Code Governance Review (CGR). Ofgem announced the Review of Industry Code Governance in November 2007

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Code Governance Review UNC Modification Proposals

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  1. Code Governance Review UNC Modification Proposals Ritchard Hewitt - National Grid NTS

  2. Background – Code Governance Review (CGR) • Ofgem announced the Review of Industry Code Governance in November 2007 • Code Governance Review (CGR) concluded at the end of March 2010 when Ofgem published their Final Proposals • The licence modifications necessary to implement the Final Proposals for the CGR and the Code of Practice (CoP) were published on 3 June 2010 and become effective on the 31 December 2010

  3. Background – Review Group 0267 • Review Group 0267 “Review of UNC Governance Arrangements” raised October 2009 • The Joint Office of Gas Transporters (JO), has been working with the industry on the necessary modifications to the UNC via the Governance Workstream • National Grid volunteered to raise all the necessary governance modifications to implement the CGR Final Proposals • National Grid have committed to liase with the industry in development of the proposals

  4. Transmission Workstream – objectives of presentation • Raise awareness of approach and timetable for developing the CGR UNC Modification Proposals • Provide an overview of the content of each Modification Proposal • Facilitate the provision of feedback • Modification Proposals will be updated and formally raised for August Panel – consultation

  5. Alternatives - 0318 • Aspect of the Code of Practice (CoP) - the approach to be taken when raising alternatives to Modification Proposals: • alternative solutions being developed to the same degree as an original solution; and • alternative proposals are raised prior to or during the working group stage. • No alternatives (or further alternatives) can be raised once a Modification has been issued for Consultation

  6. Role of Code Administrators & Code of Practice - 0319 • The CGR Final Proposals require that code administrators: • Act as a ‘critical friend’, in particular to small participants; and • Act consistently with the Code Administrator Code of Practice. • Other key elements: • Ofgem send back powers • Published reasons for Panel recommendations (based on relevant objectives) • Legal text provision • Cost information

  7. Appointment and Voting Rights for a Consumer Representative and Independent Panel Chair - 0320 Main elements of proposal 0320: • Option for the National Consumer Council & Authority to each appoint one Consumer Representative • Consumer Representatives to become Voting Members • Appointment of an Independent chair’s and provision of a casting vote where panel determinations are at stalemate • Not applicable for recommendations on whether or not to implement mods

  8. Environment 0321 • Evaluation of proposed modifications shall include assessment of the quantifiable impact on “greenhouse gas emissions” • Details to be included in reports produced during progression of the proposal

  9. Charging Methodologies – 0322 (NTS) / 0325 (DN) • Two proposals • NTS Charging Methodology and Connection Charging Methodology • Distribution Network Charging Methodology • Key elements: • Existing methodology (to be detailed in Appendix A) is incorporated within the Uniform Network Code • UNC Modification Rules are amended to reflect that: • a change to the Charging Methodology is not able to be made unless the requirements of the UNC Modification Rules are complied with • the Transporters must convene regular meetings of the charging methodology forum/s • a Modification Proposal in respect of a UNC Charging Methodology may only be made by a UNC signatory or a Materially Affected Party (being a person or class of persons designated by the Authority for this purpose)

  10. Self-Governance (‘SG’) 0323 • UNC Modification Rules change • 3 main elements of proposal: • Panel able to recommend to Authority that Panel can take implementation decisions for non-material mods • Authority also able to designate ‘self governance’ mods & approve / reject Panel recommendations • Appeals Process

  11. Significant Code Review (‘SCR’) 0324 • UNC Modification Rules change • Main elements of proposal: • Once an SCR has started any non-urgent mods seeking to change same section of UNC as SCR are ‘suspended’ • Panel submits decision to Authority to subsume mod into SCR or allow to progress individually • Once SCR is complete related mods are ‘unsuspended’

  12. Summary

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