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UK Gas Day change could incur substantial costs – shippers

04 Jul 2013 17:37:00 | esgm

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UK shippers expressed concern on Wednesday that changes to align the UK's Gas Day with that of mainland Europe could incur them substantial costs.

The changes would see the UK's Gas Day move from 06:00-06:00 UTC to 05:00-05:00 UTC by 1 November 2015, in order to become compliant with the requirements of the Capacity Allocation Mechanism (CAM).

At an initial meeting held to establish how the changes would be made, concerns were also expressed about the proposed timeframe for implementation.

System operator National Grid submitted a proposal document to the Joint Office of Gas Transporters regarding the changes to the Uniform Network Code (UNC) Gas Day earlier this month (see ESGM 10 June 2013).

"The changes to the Gas Day will not be costless or risk free," said one shipper. "According to one of our assessments, the changes could cost each company a minimum of £5m (€5.8m) to carry out the necessary work, and there will be no discernible benefit."

At this early stage, National Grid has not yet identified how the market will adjust to the Gas Day changes, and plans to explore options with affected industry participants in the coming months.

"There's a lot of work to do, and things may not be done by September 2015," said one shipper, while another suggested that the UK's Department of Energy and Climate Change (DECC) should be lobbying to push the proposed implementation date back.

Neither the transmission system operator (TSO) nor affected industry parties have yet revealed specifics as to what exactly will have to change, although details are set to emerge in the coming months.

An initial implementation date for the new Gas Day times has been earmarked for 1 October 2015, to correspond with the beginning of the new Gas Year. Jack Elliott

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