OFREG Proposals for the Implementation and Operation of a Postalisation System for Natural Gas in NI

Published: 28 July 2004

Consultation opened on 28 July 2004. Consultation closed 27 August 2004.


The Northern Ireland Authority for Energy Regulation (“NIAER”) issues today a consultation paper on the implementation of a postalised tariff for natural gas transmission.

A postalised tariff means that the charge for transporting natural gas along the designated transmission pipelines will be the same irrespective of the location of where the gas exits. The designated pipelines for postalisation will run between Ballylumford Power Station, Co. Antrim and Londonderry. The postalised tariff will not apply to the smaller distribution pipelines conveying gas to the industrial and domestic customers.

The postalised tariff is scheduled to be introduced on the 1st October 2004.

Consultation Paper

There are three areas where NIAER requests comments on:

1. Standard Licence Conditions for transporters and gas suppliers
These common conditions make provision for the operation of the postalised tariff and will be included in all designated transporters’ conveyance licences and gas supply licences. These conditions will be made under Article 60 of the Energy (Northern Ireland) Order 2003.
There has already been extensive consultation on these conditions and thus this consultation will be the final opportunity for comments.

The deadline for comments on the standards is 27th August 2004

Appendix B Standard licence conditions for transporters

Appendix C Standard licence conditions for suppliers

2. Specific licence modifications to transporters Allowed Revenue Determinations
Amendments are required to each designated transporter’s licence conditions governing their allowed revenue calculations to make them consistent with the postalised tariff system. This is the first consultation on these conditions. These conditions will also be made under Article 60 of the Energy (Northern Ireland) Order 2003.

The deadline for comments on the specifics is 13th August 2004

Appendix F PTL licence modifications

Appendix G Phoenix licence modifications

Appendix H Bord Gais licence modificationsa>

4. Network Code Conditions necessary for the postalised Tariff System
These conditions ensure that the postalised tariff system is supported in the commercial contract between the transporter and gas suppliers.

The conditions will be consulted upon as part of the formal process of modifying and implementing the network codes for the designated transporters’ pipelines.

Appendix D Network Code drafts for Payment, Credit and Debt

Appendix D1 Credit Committee Terms of Reference

Appendix E Credit/Payments Procedures/Timetable

Any comments, or a request for a copy of the paper and conditions, to:

Postalisation Implementation Workshop -
A workshop has been arranged for the 6th August from 10.00am to 3.00pm in Ofreg Offices, Belfast. This workshop will focus on two areas:
- the formulae contained in the standard transporters conditions
- the Network Code credit rules