Interruption tender

Please note that the information on these pages is only relevant to shippers and consumers whose annual gas consumption exceeds 5,860,000 kWh per annum (which excludes all domestic consumers).

Ofgem directed that from 1 April 2008 Distribution Network Operators (DNOs) revise the operation of interruption capacity as part of the reform of the Uniform Network Code (UNC), allowing DNOs to determine interruptible LDZ capacity requirements within specific geographic zones and to provide network users with the opportunity to request their preferred interruptible terms.  This reform is known as the 'Revised DN Interruption Arrangements' and is designated as the Modification Proposal 0090.

 

How does it work? 

The modification introduced a tender arrangement for interruptible LDZ capacity within the DN with offers selected on the basis of economically and efficiently meeting our capacity requirements. From October 2011, all sites will be considered firm, paying both commodity and capacity charges but with payments made to sites which are offered interruptible contracts based on an option and exercise regime. The option price will be a flat payment paid monthly in arrears when the contract comes into effect while the exercise price will be paid each time the site is interrupted. These sites help us to manage and operate the gas networks under high gas demand conditions by agreeing to cease using gas when requested to do so by us.

 

4 to 15 June 2019: The window is now closed
Annual tender application dates, interruption offers were submitted during this period (ten business days).

25 July 2019
We published our 2019 tender result.

 

In the 2019 Annual tender process, SGN received an insufficient volume of interruption to avoid or defer the proposed distribution reinforcements.

SGN will continue to use the Interruption Tender Process as a possible means to defer future reinforcement investment where possible.

As less than three tenders were received (in accordance with Uniform Network Code, Transportation Principle Document, Section G paragraph 6.4.3) SGN is only required to publish that insufficient interruption was received.

 

 

Interruption Tender Process 2020

The next Annual Interruption Period is over a ten-day business period in early June 2020. SGN will publish their requirements in early 2020 for this window. Alternatively if required an Ad-hoc Tender process can be held at any point in time.

If you require any further assistance please contact either: Leyon Joseph on 02380 816730 or Scott Duncan on 01293 818256 or e-mail  network.capacity@sgn.co.uk.