OFGEM REVIEW OF ENTRY CAPACITY AT FLEETWOOD (7558P)

TIDM82HZ

RNS Number : 7558P

OFGEM

22 November 2016

22(nd) November 2016

REVIEW OF ALLOWANCE FOR GAS SYSTEM ENTRY CAPACITY AT FLEETWOOD

Ofgem has today announced a review into the GBP268.3 million allowance that National Grid Gas Transmission (NGGT), a subsidiary of National Grid, was allowed in the RIIO-T1 price control which runs from 2013 to 2021. The allowance is for providing capacity at the Fleetwood entry point to the national high pressure gas pipeline in Lancashire.

NGGT's obligation to provide this capacity was originally triggered by bids in the September 2006 Quarterly System Entry Capacity auction by a gas shipper. However, the shipper has since defaulted on payments and no longer has a right to the capacity. National Grid has since offered the entry capacity at auctions to other parties, and a gas shipper has successfully bid for some capacity at Fleetwood for one quarter in 2025.

Ofgem's review will determine the appropriate treatment of this capacity obligation under the RIIO-T1 price control. This may reduce NGGT's price control allowances and its capacity obligation. We will take account of stakeholder views on whether this entry capacity is still needed. Ofgem is planning to publish a consultation on its proposed approach in March 2017 and a final decision will be made early summer 2017.

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Notes to Editors

1. A copy of today's open letter is at the top of this page: https://www.ofgem.gov.uk/network-regulation-riio-model/riio-t1-price-control

2. For more information on the RIIO-T1 price controls please see our website.

   3.   About Ofgem 

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem's work, see Energy facts and figures or visit the Ofgem Data Portal.

Follow us on Twitter @ofgem and LinkedIn

Further information

For further press information contact:

07766 511470

Chris Lock: 0207 907 7225

Joseph Moss: 0207 901 7178

This information is provided by RNS

The company news service from the London Stock Exchange

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November 22, 2016 02:00 ET (07:00 GMT)