Transportation Code Modification Proposals
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| Modification 1 |
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| "It is proposed to change the indices used to calculate the Daily Gas Price to reflect a market related gas cost for charging and/or cashing out of imbalances." | ||||||||||||||||||||||||||||||||||||||||
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| Proposer | British Gas Trading Limited (BGT) | |||||||||||||||||||||||||||||||||||||||
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| Proposer's Representative | Keith Sanderson | |||||||||||||||||||||||||||||||||||||||
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| Date | 6th February 2002 | |||||||||||||||||||||||||||||||||||||||
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| Proposed Implementation Date | 1st April 2002 | |||||||||||||||||||||||||||||||||||||||
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| Proposal | ||||||||||||||||||||||||||||||||||||||||
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(a) |
Description of the nature and purpose of the Modification | |||||||||||||||||||||||||||||||||||||||
| Balancing and Scheduling Charges are currently determined
by the Daily Gas Price calculated in accordance with clause 4.1.1(a)
of the Code. We believe the methodology used to be unreasonable and
subsequently believe the Daily Gas Price should reflect the gas market
at the time when a shipper incurs the imbalance.
The number of Balancing Gas purchases and sales that determine the Daily Gas Price are extremely limited and on the majority of days the Daily Gas Price is calculated using a 91 day average of these Balancing transactions. In any event the shipper does not receive any indication as to what the Daily Gas Price is until the PTL monthly Invoice is issued. BGT believes this to be a valid proposal on the basis that the System Average Price is already acknowledged by the Transportation Code as an alternative index for calculating the Daily Gas Price. BGT therefore proposes that the Daily Gas Price should be equal
to the NTS System Average Price for the Relevant Day. |
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(b) |
Improvements | |||||||||||||||||||||||||||||||||||||||
| The imbalance that a shipper incurs on any day can be attributable to the deficit / surplus of gas being delivered from the NTS where there is an established and market reflective balancing regime. As a result this proposal means that shippers will pay a market reflective charge for being out of balance. | ||||||||||||||||||||||||||||||||||||||||
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(c) |
Sections of the code requiring amendment | |||||||||||||||||||||||||||||||||||||||
| Sections of the Code requiring Amendment and proposed
rewording (NB: this is for illustrative purposes only and has not
been the subject of a legal review):
4.1.1 In this Code
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