Wednesday 19 April 2023

UNC Mod 0373 - Action WG0505:

Provide for discussion/development

the potential categories of

connection offer and associated

timescales and costs

Exit - Minimum Offtake

Exit - Minimum Offtake & pipeline / network reinforcement

Entry – New Entry Point

Entry – Expansion to Existing Entry Point

Storage

Time (from formal Application to provision of Offer)

3 months [6] months (+ 3 months extension?)

[9] months (+ 3 months extension?)

[6] months (+ 3 months extension?)

[9] months (+ 3 months extension?)

Cost of Application

Fixed price = [£30k] application fee or Variable price application fee (methodology TBC)

Fixed price application fee or Variable price application fee (methodology TBC)

Fixed price application fee or Variable price application fee (methodology TBC)

Fixed price application fee or Variable price application fee (methodology TBC)

Fixed price application fee or Variable price application fee (methodology TBC)

Content of Offer 1. All necessary engineering studies2. Construction agreement3. Price, Program, Layout

1. All necessary engineering studies2. Construction agreement[3. Route corridor for pipeline.]4. Price, Program, Layout

1. All necessary engineering studies2. Construction agreement[3. Route corridor for pipeline.]4. Price, Program, Layout

1. All necessary engineering studies2. Construction agreement[3. Route corridor for pipeline.]4. Price, Program, Layout

1. All necessary engineering studies2. Construction agreement[3. Route corridor for pipeline.]4. Price, Program, Layout

Type

Details

Supplementary Notes

• Do we need additional categories for new and existing connections?

- Proposer’s initial view that first task should be to clarify process for new connections then adapt model to fit.

• In all cases, a 3 month post-offer “acceptance period” would apply.

• Content:

“All necessary engineering studies” – Covers feasibility, pre-feasibility, conceptual design studies, etc.

• Costs – Covers the cost of producing necessary reports to produce an estimate of the full costs of physically

connecting to the network. It would not cover the actual cost of physical works, nor entry or exit capacity costs.

19 April 2023, E.ON, Page 3

Supplementary Notes (cont’d...)

• Costs:

If customer wishes to change details of the application, there would be a cost

associated with this (level of such costs to be discussed / developed).

• 3 month extension – An option for more complex projects. Should it be limited it to

how many times such extensions can be exercised by NG NTS in one year? Ofgem

role?

• CUSC (electricity model):

- CUSC application fees – capped at £400,000 + VAT

- If unusually complex NGT reserves right to remove fixed price option

19 April 2023, E.ON, Page 4