National Grid Fossil Fuel Transfer Costs National Grid Gas (Distribution) 2013/14 and 2021/22

Title: National Grid Gas Fossil Fuel Transfer Costs National Grid Gas (Transmissions)

Content: Detail on the conditions under which this cost is valid:

* All costs in 2009/2010 prices
* Financial Year 2012/13: 

RAV 4686



User: Lilian Macleod

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Cost category: Fossil Fuel Transfer Costs cost data

Cost source: National Grid Gas cost source

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Label: National Grid Gas (Transmissions)

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Title: National Grid Gas Fossil Fuel Transfer Costs National Grid Gas (Distribution)

Content: Detail on the conditions under which this cost is valid:

* All costs in 2009/2010 prices
* Financial Year 2013/14: 
* Fixed OPEX costs 2013/14 = £/a 530m
* Fixed Capital Costs 2013/14 = £/a 720m

* Financial Year 2021/22: 
* Fixed OPEX costs 2021/22 = £/a 420m
* Fixed Capital Costs 2021/22 = £/a 855m

* Costs of decommissioning the entire Gas Distribution Network is in the region of £4,088m (Source: ENA).

* Costs are largely independent of volume, scenarios that indicate reductions in energy conveyed are not likely to materially impact on the fixed cost element. Assuming a cost per unit of energy may lead to inaccuracies in cost calculations.

* Specific replacement programme relating to metallic pipe assets between 2002 and 2032 assumed in investment. Between 2013/14 and 2021/22 it has been assumed that 25% of replacement costs have been expensed within year. 
* Operational costs relate to repair, maintenance and the provision of the gas emergency service - these costs remain fixed in line with geographical requirements for existing assets.

Limiations of this cost estimate

* Costs have been based on National Grid's 4 gas distribution network regulatory plans.
* Figures would need to be doubled to provide an estimate of the total costs for GB's gas distribution grid (accounting for the 4 distribution networks not owned or operated by National Grid).



User: Lilian Macleod

Signed off by: 

Signed off at: 

Cost category: Fossil Fuel Transfer Costs cost data

Cost source: National Grid Gas cost source

Valid for quantity of fuel: 

Valid in year: 

Efficiency: 

Life: 

Size: 

Fuel: 

Operating: 

Capital: 

Default fuel unit: 

Default operating unit: 

Default capital unit: 

Label: National Grid Gas (Distribution)

Output: