Flow Flexibility Business Rules Ritchard Hewitt Items

Flow Flexibility Business Rules Ritchard Hewitt

Items to resolve today · · Nodal or Zonal release. If zonal · Preferred Number of zones. · Extent of Tradability. · Preferred Anti-hording Measure. – Aggregation – Interruptible product · Timing of day ahead auctions.

Issues to consider · Larger zones = More opportunity to trade but greater buy back risk and less efficient investment and inaccurate buy back. · Smaller zones = less opportunity to trade on 1 to 1 basis but more efficient Investment and more accurate buy back actions. · Nodal release = Efficient investment signals but more complex release, holding and trading arrangements.

Action items from last meeting · · Provide map and list of offtakes for 31 zone model Provide baselines based on 31 mcm. Provide details of historic use. Provide details of players in the 31 zone model to allow assessment of trading opportunities.

St. Fergus 0 Kinkockie Aberdeen Careston 1 Balgray Glenmavis Armadale 4 National Transmission System 2 Drum Pitcairn Soutra Hume 3 Coldstream 5 Netherhowcleugh Humbleton Guyzance Lockerbie To Existing Pipeline Proposed Pipeline Interconnector Terminal Broxburn Wetheral Ballylumford Proposed Terminal LNG Storage Saltwick Corbridge Tow Law Keld Thrintoft 7 To Dublin Burton Point Samlesbury LDZ Offtakes Pickering Asselby Ganstead Paull Rawcliffe Blyborough Partington Aspley Millwich Blaby Austrey 25 North Stoke Eastern Grey Aylesbeare Kenn Lyneham Mappowder Winkfield (SE) 26 Braishfield Mappowder Wytch Farm Peters Green Roxwell / Chelmsford Horndon Winkfield (NT) Winkfield (SO) Little Drew Pucklechurch Ilchester Whitwell 27 Matching Green Shorne Farningham Tatsfield 28 Isle Of Grain or Avonmouth Hardwick Cirencester 20 24 Royston ct Fiddington Gilwern Yelverton Great Wilbraham ne 23 14 Bacton on Stratford-upon-Avon Evesham 19 18 17 Brisley West Winch Roudham Heath Eye Caldecot Market Harborough 21 Rugby Leamington Ross (SW) 15 Langton Tur rc Dynevor Arms 16 Kirkstead Gosberton Sutton Bridge Silk Willoughby Alrewas (EM) te In Shustoke Ross (WM) 11 Audley (NW) Audley (WM) Alrewas (WM) 22 Easington 29 30 Theddlethorpe Thornton Curtis Walesby Warburton 13 Dowlais Hornsea Towton 10 Blackrod Holmes Chapel Weston Point Mickle Trafford Eccleston Malpas Dyffryn Clydach Salt Cavity 9 Pannal 12 Milford Haven Regulator Proposed Regulator 6 Baldersby Burley Bank 8 Lupton Barrow Teesside Cowpen Bewley Elton Little Burdon To Zeebrugge

31 zone baseline based on 31 MCM capability plus Historic peak usage in 2004.

13 zone baseline based on 31 MCM capability

5 zone baseline based on 31 MCM capability

Players in each zone – Part 1 · · · · · Zone 0 – 4 LDZ, 1 CCGT Zone 1 – 4 LDZ, 1 CCGT, 1 I&C Zone 2 – 3 LDZ Zone 3 – 8 LDZ Zone 4 – 1 Storage, 1 LDZ Zone 5 – 6 LDZ, 1 CSEP Zone 6 – 2 LDZ, 1 CCGT, 2 CSEP, 3 I&C Zone 7 – 4 LDZ, 2 CCGT Zone 8 – 7 LDZ, 1 Storage, 2 I&C, 2 CCGT · · · Zone 9 – 3 Storage, 5 LDZ, 2 I&C · · · Zone 14 – 3 LDZ, 2 CCGTs, 1 CSEP Zone 10 – 2 LDZ, 1 I&C Zone 11 – 2 LDZ, 6 CCGT, 1 I&C Zone 12 – 1 CCGT, 1 CSEP Zone 13 – 3 Storage, 14 LDZ, 8 I&C, 3 CCGT Zone 15 – 3 LDZ, 1 CCGT Zone 16 – 3 LDZ Zone 17 – 2 LDZ, 1 CCGT Zone 18 – 1 CCGT

Players in each zone – Part 2 · · · Zone 19 – 2 LDZ, Zone 20 – 2 LDZ, 1 CCGT, 1 I&C Zone 21 – 5 LDZ, 1 I&C Zone 22 – 6 LDZ, 1 CCGT, 1 Storage Zone 23 – 1 LDZ Zone 24 – 6 LDZ, 2 CCGT, 1 I&C · Zone 25 – 10 LDZ, 6 CCGT, 1 Storage, 1 I&C · · · Zone 26 – 1 Storage, 7 LDZ, 2 CCGT Zone 27 – 2 LDZ Zone 28 – 1 Storage, 3 LDZ, 4 CCGT Zone 29 – 2 LDZ Zone 30 – 4 LDZ, 4 CCGT

Summary

Items to resolve today · · Nodal or Zonal release. If zonal · Preferred Number of zones. · Extent of Tradability. · Preferred Anti-hording Measure. – Aggregation – Interruptible product · Timing of day ahead auctions.