Friday 21 April 2023

Richard Fairholme, E.ON UK

Modification Proposal 0273 –

“Governance of Feasibility Study Requests

to Support Changes to Network Exit

Agreements”

What does the Modification Proposal cover?

• “Feasibility” / engineering studies conducted by

Transporter to analyse impact of request by Shipper to

changes to, or application for, a Network Exit Agreement

(NExA) (e.g. increase to ramp rate / max. gas offtake

rate).

• Shippers request (and fund) such studies from National

Grid NTS / DNs.

• Can only move to formally agreeing (change to) NExA

once engineering study process complete.

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How long will it take?

How much will it cost?

The Current Feasibility

Study “Headache”

Delays bringing on new

generation plant or capability

Delays in bringing

gas storage to

market

Delays in meeting

increased I&C

customer gas

demand

How many studies will I

need?

21 April 2023, E.ON, Page 4

What is Proposed?

To support NExA applications / modification applications, it is proposed that: • A standard application form to be used for submitting requests by Shippers.

• A standard set of terms and conditions where studies required to be made available by the Transporter(s).

• Fixed (or variable) costs for different categories of applications - varying according to size, type and location of project.

• Study supporting NExA change application to be completed within 3 months. If required, any additional studies to be completed within a further 3 months (i.e. a maximum of 6 months in total).

• Expected to apply to both National Grid NTS and the Gas Distribution Network Operators (above 7 barg connections).

21 April 2023, E.ON, Page 5

What is NOT Proposed?

• Any amendment to existing “Siteworks” process for connections to DNs.

- Covers connections less than 7 barg.

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Benefits for Shippers of this Proposed New Process

Less time spent negotiating with the Transporter.

Able to bring projects to the market more quickly.

Better able to plan projects & able to make more efficient decisions.

Similarity to CUSC arrangements in electricity should make process

easier to understand (particularly for new entrants).

Ensures all Shippers are treated equally.

Overall, less Shipper FTE requirement for progressing NExA

applications / modification applications.

21 April 2023, E.ON, Page 7

Any Questions / Comments?

21 April 2023, E.ON, Page 8