Mod 0273: Governance of Feasibility Study Requests to Support Changes to Network Exit Agreements – National Grid NTS Response
Mod 0273 Overview
Raised by E.ON UK Focuses on Feasibility Studies required to change max flow / ramp rate
changes to NTS NExAs, NTS new connections & DN equivalent processes No published timescales for completion of Feasibility Study or
associated Agreement No indicative costs published
Proposes CUSC style formal timescales & costs to introduce: 3 month turnaround of Feasibility Study Fixed costs (with option for users to opt for later reconciliation)
Proposed benefits are: Improved transparency Greater competition via increased flow rates
NG NTS Initial Views
There is confusion over the electricity model deployed The 3 month Connection and Use of System Code (CUSC)
Modification Application process employed in electricity does not include a feasibility/engineering study
Feasibility Study fees are not published in electricity
The gas process needs to be fully understood In comparison to electricity, the number of new connections and
Network Exit Agreement (NExA) changes are relatively few. Receiving quite a few enquiries in a relatively short period can cause workload planning difficulties.
The timescales in gas vary considerably depending on the complexity of the customer requirements/installation
Feasibility and Conceptual Design Studies are important as they are undertaken to meet legislative obligations
Electricity New Connections & Modifications - CUSC Process
A ‘Feasibility Study’ is typically undertaken to help determine the best location for a new connection - limited usage, unregulated service, costs are recovered, no delivery SLA
Fees (fixed & indicative) published for New Connections & Modifications but Feasibility Study costs are not published
Application process ‘clock starts’ when all documentation is received/approved & funds have been paid
Offer timescales: 28 days – 3 months
Feasibility Study
Formal application & Payment cleared
Clock Start Offer Made
Design Stage Acceptance
(Optional)
3 Months 3 MonthsUp to 6 months
but no SLA
Gas Exit Connection Processes
For New Connections an indicative 20 week turn-around is published
Flexibility – the studies undertaken are tailored to suit the particular customer requirements
The costs/timescales of the analysis conducted is calculated accordingly
Typical study timescales and costs:
Characteristic Timescale CostSimple changes/minimum connections 3-6 months £10k to £50K
Semi complex changes/medium size connections 6-12 months £50K+
Complex changes/large connections 12 months+ £100K+
Why is it important we conduct studies?
Rapid load changes during start up and shutdown could affect the efficient and effective operation of the pipeline system
Trigger safety devices and cut off supply at the installation
Cause damage to National Grid equipment at installations such as pressure regulators, filters and orifice plate meters
Adversely affect other Users of the system (entry and exit points) in the vicinity
Legislation
Health and Safety at Work Act etc. 1974
Pressure Systems Safety Regulations (PSSR) 2000
Pipeline Safety Regulations (PSR) 1996
What is involved in conducting a study?
Influencing factors: Customers don’t always know what they want! Customers often experience difficulties in providing the information
requested Difficulties in agreeing Contractual terms (between Customer and NG) Nature of the study Contractor Procurement process Workload planning – NG and Contractors
CustomerEnquiry
Agree studyrequirements
and obtaindata required
ContractsAgreed
NGCommencestudy andengage
contractorsrequired
Studychallenged
andreviewed
Reportissued toCustomer
KeyCustomer Network Design
Contractor Customer Services
Contractorsundertake
Study