Draft determination for the gas transmission price control (GT22)

Published:

Consultation opened on . Closing date at 17:00.

Summary

Responses are invited to this draft determination for the GT22 price control for the high pressure gas network in NI. This price control will determine an efficient level of operating costs for the five year period from 1 October 2022 to 30 September 2027.

Today we are publishing our gas transmission price control (GT22) draft determination for consultation.

GT22 is the price control review for the high pressure gas network in Northern Ireland for the five year period from 1 October 2022 to 30 September 2027. The high pressure gas network comprises five gas transmission pipelines operated by four conveyance licence holders, which we refer to as Transmission System Operators (TSOs):

  • GNI (UK)
  • Premier Transmission Limited (PTL)
  • Belfast Gas Transmission Limited (BGTL)
  • West Transmission Limited (WTL)

The gas transmission pipelines transport gas from Scotland to the gas distribution networks (Phoenix Natural Gas, firmus energy Distribution and SGN Natural Gas) and to the gas-fired power stations, Ballylumford Power Station and Coolkeeragh Power Station.

We have reviewed the TSOs’ business plan forecasts.

Overall, we have concluded at this stage that:

  • while forecast costs were generally well justified, we propose to disallow some insufficiently justified cost lines;
  • we will continue to liaise with the TSOs on development in areas relevant to the NI Energy Strategy; 
  • a weighted average cost of capital for GNI (UK) of 2.66%, which is lower than their current rate of 3.17 is appropriate; and
  • we allow 89% of MEL’s submitted amount, 86% of GNI (UK)’s and 80% of GMO NI’s.

We will continue to monitor progress on costs and outputs through the Regulatory Instructions and Guidance (RIGs) and intend to add additional areas for review, including progress on asset management systems, tracking of TSOs’ stakeholder engagement activities, progress on joint working between the TSOs and the development of an Environmental Action Plan.

The proposed allowances, combined with growing annual capacity bookings on the transmission network, indicate that transmission charges will not increase as a result of GT22.

View are sought on our proposals. The consultation will close on 16 February and, following consideration of responses, we will publish a final determination in April/May 2022 to be effective from October 2022.

Please email your responses to Gas_networks_responses@uregni.gov.uk and also cc to  Jillian.Ferris@uregni.gov.uk   

Copies of all documents will be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.

Consultation response information

  • Your response may be made public by the Utility Regulator. If you do not want all or part of your response or name made public, please state this clearly in the response by marking your response as ‘CONFIDENTIAL’.
  • If you want other information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory Code of Practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence. In view of this, it would be helpful if you could explain to us why you regard the information you have provided as confidential.
  • Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA) and the Data Protection Act 2018 (DPA)).
  • As stated in the GDPR Privacy Statement for consumers and stakeholders, any personal data contained within your response will be deleted once the matter being consulted on has been concluded though the substance of the response may be retained.

Ways to respond

Postal address
Jillian Ferris
Utility Regulator
Queens House
14 Queen Street
Belfast BT16ED