Decision paper published on introducing short-term exit capacity in the gas transmission system in Northern Ireland

The Utility Regulator has decided not to introduce short-term capacity products at exit points in the gas transmission regime in Northern Ireland.

This decision paper follows on from a consultationwhich was published on 31 March 2023 and closed on 9 June 2023.

We received 10 responses to the consultation. One response was subsequently withdrawn, leaving nine responses, as follows:

• Consumer Council Northern Ireland (CCNI)

• Gas Networks Ireland UK (GNI UK)

• Gas Market Operator Northern Ireland (GMO NI)

• Mutual Energy (MEL)

• Electricity Association of Ireland (EAI)

• Evolve (previously known as SGN)

• firmus energy

• Phoenix Energy

• ESB Generation and Trading (ESB GT)

All the responses are available hereon our website.

Most respondents did not support the introduction of short term exit products in Northern Ireland. Respondents highlighted a number of risks to non-power gas consumers should a short term product be introduced. A minority of responses indicated their support for the introduction of this product.

We agree that the evidence and analysis indicate that short term exit capacity products risk detriment to non-power generation gas users.

We have decided not to introduce short term exit products at transmission exit points in Northern Ireland. This decision has been made based on our principal objective, pursuant to article 14(1) of the Energy (NI) Order 2003 to "Promote the development and maintenance of an efficient, economic and coordinated gas industry in Northern Ireland, and to do so in a way that is consistent with the fulfilment by the Authority, of the designated regulatory gas objectives."

We also recognise that the current exit capacity regime in Northern Ireland does not address the potentially distortionary impact of the gas ratchet mechanism on the Single Electricity Market. Therefore, we are considering mitigations which may help address these issues.

Copies of all documents can be made available in large print, Braille, audio cassette and a variety of minority languages if required. Please contact Emma Todd on 028 9031 6353 or email: [email protected]with cc to [email protected]to request this.