Recovery of gas transmission network reinforcement costs

Ofgem consultation (35 pages, PDF) on revenue drivers to adjust National Grid's gas transportation revenues when large new entry points connect to the gas transmission system. The document suggests using a LRIC calculation of the reinforcement work that would be required to accommodate the specific new flows, i.e. something similar (from National Grid's point of view) to a "deep" connection charging regime for large entry points. For small entry points the revenue driver is determined by reference to values for comparable existing entry points. Responses by Friday 28 April 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Gas, Ofgem, Price controls.

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