The Utility Regulator today publishes the outcome of a review of the gas transmission exit capacity regime in Northern Ireland. This document follows our call for evidence published on 15 April 2016 which generated eleven responses, which we also publish today, excluding that from SSE which was submitted in confidence.
The review considered a number of potential reforms including, the introduction of short-term capacity products, removing the responsibility for booking exit capacity from distribution system operators and amending the ratchet mechanism.
The introduction of short-term capacity products generated the largest response, in particular from the power generation sector. Having considered the issues raised by respondents it has been concluded, after extensive consideration from both the perspective of electricity and gas markets, that those issues raised by the power generation sector relate to the design of the Electricity Wholesale market. These issues would therefore be most appropriately considered in the design of the new wholesale electricity market, the I-SEM. The outcome of the review therefore does not support the introduction of such products into the existing gas regime at this time.
On the other matters considered by the review it has also been concluded that the evidence gathered does not justify amending the existing regime.
We note that any party to the transmission Network Code can propose amendments to the existing commercial regime by means of the established code modification process.
This review has been carried out for us by TPA Solutions. Copies of all documents can be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.