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Consultation on Application to reduce MRC & AS

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Ofgem Approves CSL’s Application to reduce the MRC & AS

Ofgem approves Centrica Storage Limited (“CSL”)’s final Application to reduce the Minimum Rough Capacity and Additional Space for the 2017/2018 Storage Year

Friday 10 March 2017

Today, Ofgem approved CSL’s final Application to reduce the Minimum Rough Capacity (MRC) and Additional Space (AS) to 0 (zero) for the 2017/2018 Storage Year.

On 28 February 2017, CSL applied to Ofgem to reduce the MRC and AS to 0 (zero) for the 2017/2018 Storage Year, following its determination on 16 February 2017 that, as a reasonable and prudent operator, it cannot currently re-commence injection operations (see REMIT notification 2017-23A).

Ofgem’s decision can be found here.

CSL’s Final Application can be found here.

 

Tuesday 28 February 2017

Today, CSL published its final Application to Ofgem to reduce the Minimum Rough Capacity (MRC) and Additional Space (AS) for the 2017/2018 Storage Year (this document can be found here).

CSL has applied to Ofgem to reduce the MRC and AS to 0 (zero) for the 2017/2018 Storage Year. CSL’s proposal follows its determination on 16 February 2017 that as a reasonable and prudent operator it cannot re-commence injection operations before 30 June 2017 (see REMIT notification 2017-23A).

CSL’s final Application Document provides a more detailed explanation for the proposed MRC and AS based on Rough’s physical capabilities for the 2017/2018 Storage Year. Separately, CSL has provided supporting evidence to Ofgem and its independent, expert Adviser(s) to support this Application.

CSL is not seeking comments on its final Application. However, the Application Document provides contact details should you have questions for CSL or Ofgem regarding its contents.

In relation to next steps, the Undertakings do not specify a timeframe for Ofgem to reach its decision on CSL’s application.  However, CSL is seeking Ofgem’s decision by 10 March 2017.

Following notification from Ofgem of its decision regarding this application, CSL will promptly (within 5 working days) post the details of the decision on the CSL website and issue a statement announcing Ofgem’s decision on STORIT.

 
Thursday 15th December 2016 (CONSULTATION CLOSED)

Today, CSL has launched a consultation regarding its application to Ofgem to reduce the Minimum Rough Capacity (MRC) and Additional Space (AS) (this document can be found here.)

As explained in the consultation document the primary aim of the consultation, affecting the 2017/2018 Storage Year, is to ensure CSL is not required to sell more storage services than Rough can physically deliver.

CSL’s consultation document sets out the methodology by which Rough’s physical capability for the 2017/2018 Storage Year can be projected and a methodology by which this projected physical capability can be converted into MRC and AS.

The consultation sets out a range of scenarios reflecting the proposed methodologies.  These scenarios are primarily based on the availability of Rough’s wells for injection and withdrawal.  They also include one scenario where there are no wells available for injection and withdrawal (based on well test results or due to other operational risks identified and verified which mean that CSL as a prudent operator cannot recommence physical injection operations at the start of the 2017/2018 Storage Year).

These scenarios will form the basis of how CSL will offer Rough’s physical capabilities in 2017/2018.  CSL will provide the market and Ofgem with specific information about Rough’s expected capabilities on or before 28 February 2017, which will constitute a non-material amendment to CSL’s application.

Market participants are invited to provide their views on CSL’s application and whether Ofgem should approve it.  Further, CSL sets out some specific questions that market participants may wish to comment on.  Market participants may provide their submissions to CSL or directly to Ofgem (CSL will provide Ofgem with all submissions that CSL receives).