Initial view on changes to Codes

OTEG, 3rd July 2006

Agenda

Assumptions SO – TO Code Grid Code Connection and Use of System Code Process/timescales for change

Only an initial view at this stage GB SQSS debate heavily influences changes

required Are current arrangements appropriate offshore?

Assumptions

‘Offshore Users’ have equitable treatment as ‘Onshore Users’

Each offshore network has single point of connection to onshore network

Offshore TOs may be nested Offshore networks may connect to onshore transmission or

DNOs Offshore transmission will only be AC Must accommodate one or many new TOs Transitional arrangements may be required prior to

enduring regime being implemented Any regime developed must be adaptable for the future

SO-TO Code (1)

Section B - Governance Practicalities of extending beyond 3 TOs

Section C - Transmission Services Switching Arrangements - TO acts under instruction from

GBSO DNO interaction e.g. outage co-ordination Interaction between offshore TOs

Section D - Planning Co-ordination Is onshore model applicable offshore?

SO-TO Code (2)

Section E – Charging Charging Statement for each TO

Section F – Communications and Data Are confidentiality provisions in STC suitable?

STC Procedures Full review of existing STCPs required Requirement for new ‘Offshore STCPs?’

Grid Code

May require further, additional, regional differences Planning processes

Dealing with potential DNO interfaces Connection Conditions

Driven by GB SQSS debate Review connection conditions for offshore

Operating Codes Safety rules differ for different TO areas

General Conditions Constitution of Grid Code Review Panel

Connection and Use of System Code

Access Allocation of access Compensation for loss of access

Exporting GSPs Current issue could be exacerbated via DNO connection

Transmission Charging CUSC/Charging statements work hand in hand Same as GB regime?

Bilateral Agreements Are existing onshore pro-formas appropriate?

Process for change - options

Use normal governance arrangements for codes – Authority decision

Ofgem/DTI consult – changes designated by Secretary of State

Issues to consider: Timescales Complexity and scope of change Interactions between codes (cross-governance) Flexibility Ensuring all interested parties are included Utilisation of existing industry expertise Co-ordination with ongoing GB Code change processes OTEG liaison with industry panels

Timescales

June 06 Initial view on code changes Sept 06 Follow on from GBSQSS group

Scope required changes further Q1 07 Specific identification of required

changes Q2 07 Industry consultation Q2/3 07 Refinement of changes

Finalise details of legal drafting Q3/4 07 Final consultation Mid 08 Go-Live for offshore regime