The Utility Regulator is today publishing our decision to proceed with modifications to the GNI (UK), Premier Transmission, Belfast Gas Transmission and West Transmission gas conveyance licences in order to better facilitate our statutory duties when carrying out price control reviews. The effect of the various modifications will be to:
- Introduce into the four licences the Regulatory Instructions and Guidance condition that has already been introduced into the gas conveyance licences held by the three gas distribution network owners;
- Align the Review Date of all four licence holders which will be every fifth year commencing on 1 October 2017;
- Introduce a requirement to forecast Uncontrollable Operating Expenditure into the licences held by Premier Transmission Limited, Belfast Gas Transmission Limited and West Transmission Limited;
- Align the timelines for the submission of cost data to the Authority across the four licences;
- Remove the inclusion of revenue from Virtual Reverse Flow and Oversubscription and Buy Back from the calculation of the Annual Required Revenue for Belfast Gas Transmission Limited and West Transmission Limited;
- Amend the definition of the First Operational Commencement Date in the West Transmission Limited licence;
- Create a separate condition within the GNI (UK) Licence for updated dis-application procedures which will permit GNI (UK) to challenge price control allowances at the Competition and Markets Authority; and
- Clarify the circumstances in which GNI (UK) can seek from the Authority a special operating expenditure forecast review.
The various modifications are in accordance with Article 14(8) of the Gas (Northern Ireland) Order 1996.
On 12 April 2017, we issued a consultation on this proposed decision. Two responses were received from GNI (UK) and Mutual Energy Ltd. The modifications shown in Annexes 1 to 4 to this decision paper will have effect from 01 August 2017.