Review of Proposed Gas Exit Arrangements

Following Transco’s recent sale of four of its gas distribution networks, Transco were required by Ofgem to set up a new commercial framework for NTS Exit Capacity. TPA Solutions and NERA were jointly engaged by the Gas Forum (an industry body representing many of the major players in the UK Gas Market) to review Ofgem’s proposals.

The review covered Ofgem’s case for change, the intended and likely unintended implications of the proposals, possibilities for simpler alternatives and an assessment of the potential costs and benefits.

The project identified some major commercial and technical problems with the proposals and calculated a significantly different (negative) NPV for their implementation. Ofgem have now postponed implementation of the enduring NTS offtake arrangements until September 2007.

View Report: Review of the Proposed Gas Exit Arrangements. A Report for the Gas Forum