Final modification report 0686: Amendment to Pre Termination Processes and Associated EBCC Referrals
This modification relates to Transco’s procedures when it has to terminate a shipper’s agreement when it defaults on payments. The purpose of the modification is to improve the transparency of this procedure and reduce the risk to other shippers. The modification would make it necessary for Transco to convene the EBCC to review any such case (currently Transco only has to convene it when a receiver has been called in). It will also have to give advance notice to the EBCC that a Termination Notice is due to be issued. Transco said the involvement of the EBBC would be consistent with Transco acting on behalf of the EBCC in view of Transco’s neutral position.
Transco therefore proposes to align Sections X2.9.3, X2.10, X3.2.1 & X3.2.2 with X4.2.1 to require Transco to convene a meeting of the EBCC with the intention that the EBCC may determine whether Transco should be obliged to issue the Termination Notice, pursuant to Paragraph X4.1, or whether Transco should defer taking such a step.
It is also proposed to inform EBCC members following the issue of all ‘failure’ notices which would be referenced in Sections X2.9, X2.10, X3.2 & X4.
It is intended that the introduction of the proposal to inform the EBCC when any failure notice is issued and to convene a meeting of the EBCC before issuing a Termination Notice, should not delay the issue of such notices. However, should any delay result, Transco said it should not be held responsible. Informing EBCC members when a failure notice is issued serves to provide prior warning that a Termination Notice is due to be issued.
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