Subscribe to this blog's feedThe great man appreciates that the methodology involved in trading entry capacity to the gas transmission network is not exactly mainstream. In fact, it is positively arcane, but Disconnector wonders whether it has to be impenetrable?
The great man appreciates that the methodology involved in trading entry capacity to the gas transmission network is not exactly mainstream. In fact, it is positively arcane, but Disconnector wonders whether it has to be impenetrable?
This is an extract from a recent Ofgem communication on the subject. “The ZAM is determined to facilitate an exchange rate of 1:1 between ASEPs within a zone under a set of test scenarios requiring various analyses to be done for each month and ASEP. For each ASEP the analysis involves adjusting the flow at the ASEP under investigation to the NAM whilst reducing the Maximum Permitted Flow Rate (MPFL) from the obligated level at other ASEPs in the same zone (the order for reducing flows is based on the reverse of the merit order). If in NGG NTS’ view there is no material increase on costs then these flows rates are recorded. If there are material increases in costs then MPFLs at other ASEPs are reduced further and flow is reduced at the ASEP under investigation back towards the obligated level until there are no material increases in costs.”
Clear or what?
