National Grid Plc · LSE:NG.
National Grid — Investor Presentation (April 2009)
8 slides from National Grid's investor presentation, Apr 3, 2009
Slide 1: CAP172 "Capacity Pricing Mechanism"
CAP172 “Capacity Pricing Mechanism” CUSC Panel, 3rd April 2009
Slide 2: Introduction
Introduction Following the CUSC Panel decision to reject CAP171 as a valid Amendment Proposal considering it to have “substantially the same effect” as CAP166, CAP172 represents the CAP171 proposals with further justification of their differences when compared to other Pending Amendment Proposals Th
Slide 3: CAP172 Overview
CAP172 Overview CAP172 proposes a Capacity Duration auction for the allocation of access rights Access Right defined by reference to a Load Duration Curve Compensation required for loss of rights and Load Duration Curve inherently linked to price at which Access Rights are offered New set of
Slide 4: Key Features
Key Features Users requiring firm priced access rights must submit: Capacity and identity of Years Access is required Load Duration Curve for each year Buyback Price for each year Load Duration and Buyback Price are contractually binding for life of access right Output in excess of Load
Slide 5: Definition of the Access Right
Key Differences compared with Pending Amendment Proposals Definition of the Access Right Load duration curve offers bespoke access right at a fixed ex-ante price – an access right defined by both Capacity and Time – Other products only offer access right defined by Time Access Right means that
Slide 6: Efficiency of Access Right Allocation
Key Differences compared with Pending Amendment Proposals Efficiency of Access Right Allocation Allows users to define a load duration curve based access right – Allows Users to indicate where they will not be using access rights up to their full capacity Even where Users cannot predict when t
Slide 7: Impact of Buyback Price
Key Differences compared with Pending Amendment Proposals Impact of Buyback Price Access Right priced reflective of the Users desired levels of compensation for curtailment of access Contractual link to grant of access right and price of curtailment No other Pending Amendment has these chara
Slide 8: Overrun and Summary
Key Differences compared with Pending Amendment Proposals Overrun One proposed method is to calculate Overrun volume and price by reference to a re-run of the pricing algorithm – Again no other amendment proposes this Summary For the above reasons the Proposer of CAP172 believes there is cle