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

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Showing just the changes made in the edit by Lilian Macleod at 2012-03-07 10:16:08 UTC

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

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
* Variable OPEX Costs 2013/14 = cost of gas multiplied by 1525GWh/a (shrinkage level)

* Financial Year 2021/22: 
* Fixed OPEX Costs 2021/22 = £/a 420m
* Fixed Capital Costs 2021/22 = £/a 855m
* Variable OPEX Costs 2021/22 = cost of gas multiplied by 1225GWh/a

* 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.

* Distribution networks are largely fixed costs based on investments in constructing, maintaining and replacing a network designed to function over the peak energy demand at a specified point in time. Approximately 3% of costs associated with leakage, own use and theft of gas on the Gas Distribution System (i.e. Shrinkage Coata) vary to an extent with gas throughput (i.e. variable opex costs).

* 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.

* Costs based on 2010 proces and exclusive of Tax, Regulatory Licence Fees and Business Rates.

Limiations of this cost estimate

* Costs have been based on National Grid's 4 gas distribution network regulatory plans (apart from decommissioning costs).  To obtain true cost estimate of GB's Gas Distribution Network costs from other four networks would be required.

* 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 cost source

Valid for quantity of fuel: 

Valid in year: 2013/14 and 2021/22

Efficiency: 

Life: 

Size: 

Fuel: 

Operating: 

Capital: 

Default fuel unit: 

Default operating unit: 

Default capital unit: 

Label: National Grid Gas (Distribution)

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

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
* Variable OPEX Costs 2013/14 = cost of gas multiplied by 1525GWh/a (shrinkage level)

* Financial Year 2021/22: 
* Fixed OPEX Costs 2021/22 = £/a 420m
* Fixed Capital Costs 2021/22 = £/a 855m
* Variable OPEX Costs 2021/22 = cost of gas multiplied by 1225GWh/a (shrinkage level)

* 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.

* Distribution networks are largely fixed costs based on investments in constructing, maintaining and replacing a network designed to function over the peak energy demand at a specified point in time. Approximately 3% of costs associated with leakage, own use and theft of gas on the Gas Distribution System (i.e. Shrinkage Coata) vary to an extent with gas throughput (i.e. variable opex costs).

* 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.

* Costs based on 2010 proces and exclusive of Tax, Regulatory Licence Fees and Business Rates.

Limiations of this cost estimate

* Costs have been based on National Grid's 4 gas distribution network regulatory plans (apart from decommissioning costs).  To obtain true cost estimate of GB's Gas Distribution Network costs from other four networks would be required.

* 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 cost source

Valid for quantity of fuel: 

Valid in year: 2013/14 and 2021/22

Efficiency: 

Life: 

Size: 

Fuel: 

Operating: 

Capital: 

Default fuel unit: 

Default operating unit: 

Default capital unit: 

Label: National Grid Gas (Distribution)

Output: