Gas Transmission Charging Review: our policy position on future charging arrangements
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closing date
- Industry sector
- Transmission Network
- Generation and Wholesale Market
- Decision
The Gas Transmission Charging Review (GTCR) is our open review of transmission entry charging arrangements in Great Britain (GB). The aim of the GTCR is to ensure that we have in place arrangements which facilitate the provision of a safe, secure, high quality transmission network service at value for money to existing and future consumers.
Following our review, we have identified areas of weakness in the existing arrangements. We think that, in the interests of current and future consumers, future charging arrangements should be improved by making a number of changes.
They are:
- introducing 'fully-floating' capacity charges for long-term capacity products;
- changing the charging arrangements for short-term capacity products:
- all users will pay the full 'floating' capacity charge component, to recover the historic network cost;
- the reserve price discount on short-term capacity products will be less than 100% of the long-term capacity reserve price.
We feel there is value in sharing our position on this important issue as early as we can. We will seek to co-ordinate the implementation of these changes with the wider process of implementing the EU Network Code on Tariffs.
This letter marks the beginning of the three-month consultation on our policy position on future gas transmission charging arrangements.
Update
On 30 January 2015 we published a more detailed document setting out the background to our review, as well as our initial assessment of the potential impact the changes we propose may have on transportation charges and security of supply, and potential distributional effects. This document, called Part II, set out more specific questions we would like to hear your views on, and is available as the subsidiary document below and at the Related Link above.
We are happy to hear your views in response to the December policy position and January assessment of impacts. Please e-mail us:
Gas.TransmissionResponse@ofgem.gov.uk
We will wait until we have responses to the full consultation and assessment of impacts before weighing up our final policy position. The consultation will close on 27 March 2015.
Respond name
Alena Fielding