Enduring Offtake Arrangements including an Off-Peak Interruptible Service

1. Enduring Offtake Arrangementsincluding an Off-Peak Interruptible Service Peter Bolitho

2. Key drafting points • ‘Bolted-on’ to main proposal • Off-peak Interruptible service is simply another product that can be used along side the other exit capacity products. • Off-Peak Interruptible service capacity definition and booking concept introduced (different to current UNC which relies on defining firm or interruptible status) • Proved too complex and illogical? to have failure to interrupt charges along side overrun charges. Theme Date Department

3. Key Features • Existing Registered Users can opt (in full or part) to book Off-Peak Interruptible capacity at initialisation of the new regime. • Enduring Capacity can be exchanged for Off-Peak Interruptible Capacity from the relevant capacity reduction date where the appropriate reduction notice has been given. • Otherwise Off-Peak capacity applications/reductions are made on giving [one months] notice. • NGG obliged to make available Off-Peak Interruptible capacity up to the Maximum Supply Point Offtake Rate x 24 less any Enduring Exit Capacity holdings. • The Maximum Supply Point Offtake Rate is the instantaneous rate of offtake (in kW) which NG NTS determines it is feasible to make gas available for offtake. MSPOR may be specified in NExA or connection agreements. Theme Date Department

4. Key Features 2 • Existing entitlement rolls forward on daily basis. • Any holdings of Annual, Daily Firm and Daily Interruptible would reduce the effective Off-Peak Interruptible capacity on any day – Off-Peak interruptible capacity is effectively the ‘swing’ amount. • NG NTS required to publish by 15:00 hours forecast total system demand as a percentage of the 1 in 20 demand. • When forecast is >80% all Off-Peak Interruptible Capacity entitlements shall be withdrawn. • Users may still be able to acquire Daily Firm Capacity or Daily Interruptible Capacity as an alternative. • User obliged to apply for Enduring Capacity in the July application widow at a level not less than the maximum overrun quantity in the last 12 months. Theme Date Department

5. Release of Off-Peak Interruptible Capacity Max SPOR x 24 Baseline ? Off-Peak Capacity that can be applied for Capacity Holding Daily capacity (and subsequent annual capacity purchases) Enduring Capacity Theme Date Department