Asset health re-opener application submitted by National Gas Transmission
Summary
Ofgem consultation on an asset health re-opener application submitted by National Gas Transmission. Re-opener allows additional allowance for unforeseen asset-health-related capex.
Why it matters
Project-specific re-opener for NGT asset-health spending. Companion to the broader RIIO-2 re-opener cycle. Asset-health re-openers are particularly sensitive given that gas-transmission asset value falls as demand declines but the assets still need maintenance.
Areas affected
Memo
Asset health re-opener application submitted by National Gas Transmission | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Asset health re-opener application submitted by National Gas Transmission Publication type: Consultation Publication date: 22 January 2025 Closed date: 22 February 2025 Status: Closed (with decision) Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are seeking views on our 'minded to' decision to provide National Gas Transmission with additional funding of £33,110,000 (2018-2019 prices) to deliver asset health interventions on the national transmission system. This follows submission of a re-opener application under special condition 3.14 in January 2024. Who should respond We are seeking views from all interested stakeholders. In particular network companies, gas shippers, and consumer groups. Background In our RIIO-T2 FDs we introduced a re-opener mechanism (special condition 3.14 asset health re-opener) to adjust allowances for asset health interventions during the price control period related to the valves, compressor cabs, and plant and equipment project themes. In January 2024, National Gas Transmission submitted an asset health re-opener application seeking additional funding for interventions under the compressor cabs, and plant and equipment project themes. This consultation sets out our assessment of the evidence presented in this application and our 'minded to' decision on the appropriate level of additional funding. Why your views matter Your responses will help us to make a better informed decision in line with our statutory duties. How to respond Please send your response to graham.craig@ofgem.gov.uk . The deadline to respond is Friday 21 February 2025. Respond name Graham Craig Respond email graham.craig@ofgem.gov.uk Main document National Gas Transmission asset health Re-opener application - consultation.pdf [PDF, 928.99KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close