Optimisation

1
Optimisation

• ARODG Seminars
• Glasgow London
• February 2007

2
Content

• Outline of concept
• What Does Optimisation Address
• Optimisation Issues
• Possible options
• Process Going Forward

3
Optimisation - Concept

• Maximise use of GB Transmission System
• Facilitate Competition
• Due regard to potential increased constraint
  costs
• Economic coordinated GB Transmission System
• Solution within existing framework

4
Optimisation Addresses

• Resolving referred Offers
• Confirmation of contracted background
• Review of required reinforcements
• Delaying works for consents (where relevant)
• Scheduling of works
• Backfilling any spaces
• Moving Users forward
• Moving Users backwards

5
Optimisation Issues

• User Consent mismatch with contract
• Increase in small generation
• GB System Demand lower than Scottish Peak demand
• Lack of space ahead of reinforcements
• Limited Users withdrawing/reducing
• Users uncertain over potential to move forward
• 2016 Offers
• Optimum method to move users onto different works
• NGET Licence Condition C8 back of queue
  uncertainty
• Limited market information published
• Uncertainty over TEC trading, capacity delaying

6
Optimisation Options

• Restricting Users moving backwards
• No limit
• Within backstop date
• 6 months
• Moving Users Forward
• Managed based approach (sequential allocation)
• Market based approach (willingness to pay)
• Limiting changes to amount consented (or applied
  for)
• Removing TEC/Capacity if not meeting milestones
• More information published

7
Optimisation Going forward

• Open Letter February
• Review Code/Framework implications
• Discussions with Authority
• Responses Seminar March
• Earliest spaces identified - May