Ofgem recently published a consultation document on initial proposals for LNG storage price control. The document is the second in a series of three regarding the price control of LNG storage facilities, and it contains respondents’ views on the form, scope and duration of the control and Ofgem’s initial proposals on the recommended way forward.
Background
National Grid Gas (NGG) owns four LNG storage facilities which provide competitive storage services to shippers, as well as monopoly services to NGG’s Transmission System Operator (TSO) and the Scotia Gas Network’s Scottish Independent Undertakings (SIUs) which are separate distribution networks for four remote Scottish towns. The services provided to the TSO and the SIUs are currently subject to price controls which expire on 30 April 2008. The consultation document sets out Ofgem’s recommended approach to the extension of regulatory control going forward until sufficient competition has been established, the overriding goal
