XRN 5781.3
Removal of Non-Obligated Entry Capacity from Capacity Neutrality (Modification 0897S)

Summary

This Change Proposal has been raised to deliver the requirements outlined in Modification 0897S.

The revenues received from Non-Obligated Entry Capacity contribute to Capacity Neutrality Revenues, these are returned to Users as a result of the Licence and UNC treatment. Non-Obligated Entry Capacity does not contribute to NGT’s Recovered Revenues, these “missing revenues” are recovered via the General Non-Transmission Services charges and so will inflate these charges.

The detected anomaly will be resolved by eliminating Non-Obligated Entry Capacity from the Capacity Neutrality. The removal of Non-Obligated Entry Capacity from Capacity Neutrality will mean the revenues contribute to Recovered Revenues and so the effect is to both reduce the extent of opaque redistributions within Capacity Neutrality as well as reducing the General Non-Transmission Services (GNTS) charges.

CDSP Systems (most notably Gemini) will need to be updated through this change in order to support the Modification in removing Non-Obligated Entry Capacity from Capacity Neutrality Revenues.

• The Gemini Neutrality functionality will require modification for the Method of Sales to exclude the Non-Obligated Incremental Capacity (NIEC) quantity holder revenues from the calculation.
• End date the existing Revenue pot and create a new Revenue pot by removing the following Charge Types DFC, IPD and LTC associated to the Revenue pot of Neutrality.

The required systems changes should commence as soon as reasonably practicable, taking into consideration the stability of the recently upgraded Gemini System via the Gemini Sustain Plus programme.