Assignment Workshop 2

16th September 09, Solihull

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Overview

Background

ROM 1387

ROM 1585

ROM Analysis Explanation

Questions

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Background

National Grid NTS has had a number of discussions with Industry about the concept of NTS Entry Capacity Assignment:

“ NTS Entry Capacity assignment entails the transfer of financial liability in addition to the entry capacity entitlement ”

National Grid NTS raised 2 Rough Order of Magnitudes (ROMs) with xoserve:

EVS1387

EVS1585

Please note that a ROM request is not based on formal systems analysis and is not a replacement for a detailed analysis and must not be taken as a formal quote

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ROM EVS1387 – Generic Assignment Process

ROM EVS1387 based on the following requirements:

User driven (NG or Shipper)

Applicable from a future date

On an enduring basis

Includes both full and partial assignment

Assigned NTS Entry Capacity to be tradable

Assigned NTS Entry Capacity to be tracked

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ROM EVS1585 – As part of Voluntary Discontinuance

Deliver National Grid NTS’ UNC obligation

To facilitate the voluntary discontinuance of a redundant shipper short-code

Requirements of ROM EVS1585

Enable the assignment of long term entry capacity rights as part of an assignment of rights and obligations – not as an assignment of NTS Entry Capacity.

The existence of long term entry capacity entitlement and liabilities are assigned to 1 single specified shipper

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ROM ProcessROM Process

Presented by xoserve

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ROM Process Overview (1)

A defined method to request and receive appropriate analysis to support the development of industry changes.

It has been incorporated into MOD 213.

A light process that balances flexibility and control

A process capable of aligning to the needs and timelines of industry change processes (subject to resources and priorities)

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ROM Process Overview (2)

ROM requests should be timed in relation to the state of the proposed change;

Likelihood that the change will be supported / funded by the community and approved by the regulator

Clarity and stability of objectives, rules and requirements

Input needed to initiate ROM analysis;

As per ROM template:

Documented business objectives

Documented business principles

Documented draft business rules

Performance considerations .i.e. best estimate for…

Volumes for transactions / business events

Timeframe for transactional purposes

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Limitations of ROM exercise (1)

Following analysis of the business rules, a number of techniques are used to derive alternate estimates which are then used to specify the range of cost estimates. Techniques include:

Rough estimation by experienced solution experts

Identification of impacted and new logical functional elements and comparison to the equivalent functional elements for a previous project already costed. The comparison is used to extrapolate a ROM cost for the potential change.

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Limitations of ROM exercise (2)

The analysis is limited by time and is only a snapshot of xoserve’s understanding of the change at that moment.

Consequently,

ROM costs are highly indicative;

Decisions to proceed to delivery should only be based on detailed cost analysis (DCA) obtained through the MOD 213 process.

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Next StepsNext Steps

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Next Steps

Industry need to consider options for best fit and discuss within their workgroups

Develop business rules, system requirements, funding arrangements (etc)

When Industry in accord

Submit Draft Modification Proposal

Submit request to xoserve for Detailed Cost Analysis (DCA) via National Grid NTS