NTS Exit Reform

NTS Exit Reform

A series of Modification proposals were discussed within the industry in order to introduce changes to the current Exit Capacity Regime. The Exit Reform changes have been approved via UNC Modification 0195AV which seek to introduce the Long Term, Medium Term and Short Term sale of NTS Exit Flat capacity through Application and Auction based mechanisms. The primary business drivers for the Enduring Offtake arrangements are to provide market signals for NTS investment and to facilitate fair competition.

The current transitional NTS Offtake arrangements allow Users to procure NTS Exit Capacity for use up to and inclusive of 30th September 2012. Ofgem requires reform to the current arrangements in time to enable Users to apply for an increase or decrease to their Enduring NTS Exit Flat Capacity Rights and to make NTS Exit Flat Capacity Bookings effective from no earlier than 1st October 2012. The NTS Exit Flat Capacity application request process has been conducted in the Gemini NTS Exit Reform system in July 2010 with allocated capacity to be effective from 1st October 2012.

In order to deliver the requirements of Modification 0195AV, a three-phase delivery approach has been adopted. The following gives a high-level overview of the Phase deliverables, the current status and Implementation dates:

Phase 1 Project Stage : Implemented
Enduring and Annual Application Processes, Adhoc Applications and Reduction of User Enduring Capacity rights.

Phase 1 of the NTS Exit Reform Project was successfully implemented on the 6th June 2010. The first application window for the new regime was rolled out in July 2010 enabling Shippers and DNs with the ability to use the system.

Phase 2 - Project Stage: Implemented
Transfer and Assignment of Capacity rights to other Users, National Grid Forwards & Options Buyback Contracts and Advanced Reservation Capacity Agreements functionality.

Phase 2 of the NTS Exit Reform Project was successfully implemented on the 10th April 2011.

Phase 3 - Project Stage: System Testing
Exit Reform Phase 3 delivers new Daily Flat Capacity, Constraint Management and Invoicing functional requirements of the of NTS Exit Flat Capacity. In order to support these processes, a series of Application Programme Interfaces (APIs) are being developed.

Phase 3 of the NTS Exit Reform Project has successfully completed Code and Unit Testing enabling the project to commence System Testing, which is scheduled for 16 weeks from 31st October 2011 – 17th February 2012. Preparation for other testing activities continues.

Subsequently the following project stages will be progressed:

• Single User Performance Testing – 5 weeks from 16th January – 17th February 2012
• System Integration Testing – 5 weeks from 16th January – 17th February 2012
• User Acceptance Testing – 18 weeks from 27th February – 29th June 2012
• Stress Load Performance Testing - 5 weeks from 7th May– 8th June 2012
• Implementation Dress Rehearsal – 4 weeks from 2nd July – 27th July 2012
• User Training – 6 weeks from 13th August – 21st September 2012
• Post Implementation Support – 17 weeks from 30th July – 23rd November 2012

Please note the above dates are still to be baselined and could be subject to change.

The planned Implementation date is currently: 29th July 2012.

Details of all Exit Reform Phase 3 related screens were issued to UK Link committee via the external screen pack.