Ofgem's Proposed Final Decision on Gas Cash-Out Reforms

Mon Oct 29 16:56:53 EDT 2012
By Graham Shuttleworth and George Anstey

On 31 July 2012, Ofgem issued a "Proposed Final Decision" on the "Gas Security of Supply Significant Code Review" (the "Proposed Decision"). The Significant Code Review (SCR) concerns changes to cash-out arrangements during a Gas Deficit Emergency (GDE). Ofgem based its Proposed Decision on an Impact Assessment, issued at the same time, which in turn relies on two reports by consultants.

In this report, a NEREA team reviews the analysis that Ofgem used in its Impact Assessment and identifies some deficiencies in the inputs provided by these consultants.