Gas Interruptions customer guide
December 2006 Dear Customer Gas Interruptions Customer Guide We have produced this guide for customers who take interruptible gas supplies from us. The new gas year commences on 1st October 2006 and this version replaces previous guides. Interruptions are not optional and penalties for failure to interrupt when directed can be severe. Therefore it is important that we work together to ensure that the necessary processes are in place for interruption notices to be served effectively and acted upon appropriately. This guide will help you understand the actions you must take and the documentation used in the process. New gas distributors join the market There are now a number of gas transporters responsible for calling gas interruptions on their respective networks. In June 2005, *Transco sold four of their distribution networks to new owners (known as DNOs) although they retained ownership and control of the National Transmission Service (NTS) network and the remaining four distribution networks. However procedures for notifying you of an interruption and the actions you must take have not changed. The Health and Safety Executive has an interest in the ability of gas customers to shut down during system emergencies. * On the 10th October 2005 the trading name of Transco Plc was rebranded as National Grid Gas Plc Npower Commercial Gas Ltd or Npower Direct Ltd is the supplier and shipper of gas under your contract. Out of normal working hours (7pm 8am) when most interruptions take place, the Gas Operations team of our affiliate company RWE Trading based at Swindon act on our behalf to support the interruption notification process. They should be your first point of contact for any query about a gas interruption, and can be reached on 01793 893102. Keeping information up to date We will be working with you to update the Authorised Customer Contact details during the year. Remember, you MUST advise us immediately of any changes - you can contact us by: Phone: 0121 541 2489 / 2684 Fax: 0121 541 2674 Email: Gas.Demand.Forecasting@npower.com Please email julie.bond@npower.com to confirm you have received this booklet. Yours sincerely Julie Bond Gas Customer Relationship Management Npower Commercial Gas Ltd/Npower Direct Ltd 2
Contents Overview of interruptible status 4 Copy of contract document - Authorised Customer Contact sheet 5 Actions for our customers 6 How interruptions are notified 7 npower Interruption Notifications 8 Warning of possible interruption 9 Warning of a test interruption 10 Notification of gas supply interruption 11 Notification of gas supply reinstatement 12 Other interruption services available 13 Commercial interruptions 14 Failure to interrupt 15 Summary of contact points 16 3
Overview of interruptible status Interruption safeguards the ability to supply gas on the transportation network particularly to domestic customers. National Grid Gas/DNOs will only interrupt sites after they have assessed all other options available to them and aim to do so equitably across all sites on their network. System safety is paramount at all times and some sites are on critical parts of the gas network. National Grid Gas/DNOs may decide it is necessary to deem their status as network sensitive and may therefore need to interrupt these sites more often. If your consumption is over 5,860,000 kwh (200,000 Therms) per annum, you can choose to be supplied as an interruptible customer. You benefit from a lower transportation charge (by not paying exit capacity charges) in return for agreeing to have your gas supplies interrupted up to a maximum number of days as specified by the gas transporter. This excludes emergency situations. National Grid Gas/DNOs can call interruptions up to this specified maximum number of days in order to overcome transportation constraints on their network and, to a limited extent, for test purposes. Customers and their suppliers can also agree additional interruption days (see Commercial Interruptions). If your consumption falls below 5,860,000 kwh, and you remain with the same supplier, it is likely that you will be able to keep your status as interruptible. Should you change supplier at any time, the new supplier would be obliged to register you as a Firm customer. You can of course apply via your supplier to become Firm at any time, however this is not guaranteed and National Grid Gas/DNOs will advise if this is possible. The cost of supplying your site(s) would increase to reflect the higher transportation charges resulting from firm sites being required to pay exit capacity charges. You may need a secondary fuel supply to maintain essential services on site in the event of the gas supply being interrupted. It is recommended that each site ensures that secondary fuel supplies are always available and maintained regularly. The following page contains an example of the contract documentation completed by you at the start of the supply contract with npower. 4
Example of contract document Authorised Customer Contact details for premises subject to Interruption Notices Authorised contacts are required to cover each 24-hour period. These contact details are required in addition to the Emergency Contacts and Essential Information details in Schedule 2. Premises Contact name and/or job title Phone number (not mobile) Fax number The customer must immediately notify the supplier in writing of any changes to the Authorised Customer Contacts and contact details above. The Authorised Customer Contact(s) listed above must be fully conversant with all procedures necessary for the safe isolation of the supply or supplies in accordance with Schedule 3 of this Agreement (Interruptible Conditions) and the Uniform Network Code. SAMPLE The National Grid website (http://www.nationalgrid.com/uk/gas/data/interruptions/) provides information on the likelihood of interruptions. Commercial Interruptions The supplier may require the customer to interrupt the supply up to the maximum number of days per gas year as agreed in your contract. I warrant that the above Authorised Customer Contact details are complete and accurate and understand that failure to interrupt the Supply when required to do so by the Supplier or Transporter may result in severe financial penalties and/or disconnection of the Supply or Supplies. Customer name: Job title: Signed: Date: 5
Actions for our customers Your designated three Authorised Customer Contacts (and fax details) should be kept up to date at all times, and you must notify us of any changes immediately. One of these contacts must be available and have direct access to a fax machine 24 hours a day. You can notify us of any changes by: Phone: 0121 541 2489 / 2684 Fax: 0121 541 2674 Email: Gas.Demand.Forecasting@npower.com All Authorised Customer Contacts must be familiar with the local procedures on site to effect a safe interruption. Authorised Customer Contacts must be aware of the location of any isolation point for interruption. You must be able to facilitate safe isolation of supplies and subsequent restoration, along with switching to alternative fuels as appropriate. You must familiarise yourself with all documentation. You must provide immediate confirmation of actual isolation of the supplies, to us as requested by fax. In the event that National Grid Gas and/or a DNO contact you directly notifying you of an interruption requirement, you must comply with this. Your Authorised Customer Contacts must respond to all Warning and/or Test Interruption notices as appropriate. You must ensure ongoing maintenance of alternative fuel systems on site. If the initial call is directed out of hours to a switchboard or reception, it is imperative that all staff are made aware of these guidelines, the accompanying documentation and the implications of the Interruptions Notice. 6
How interruptions are notified 1 National Grid Gas/DNO identifies a need to invoke interruption on their respective network 2 National Grid Gas/DNO informs npower of the need to interrupt 3 5 7 9 npower confirms receipt of notification Consumer confirms with npower by return fax that they will interrupt from the specified time Consumer self interrupts at the specified time National Grid Gas/DNO notifies npower the specified time at which the consumer can resume taking gas 4 npower 6 npower 8 National faxes and phones notice to consumer of the need to interrupt with effect from a specified time confirms to National Grid Gas/DNO that consumer will interrupt from the specified time. In the unlikely event that npower fails to confirm to National Grid Gas/DNO that the consumer will interrupt, National Grid Gas and/or the DNO may notify the consumer directly Grid Gas/DNO determines supplies can be restored notifies consumer they may resume taking gas from the 10npower specified time npower 24 Hour Contacts Gas Operations Phone: 01793 893 102 Fax: 01793 892 711 Email: gas.ops.trading@rwe.com Internet warning information service: http://www.nationalgrid.com/uk/gas/data/interruptions/ 7
npower interruption notifications The following pages contain copies of the interruption notifications npower will use to notify the consumer of: the possibility of an interruption our intention to conduct a test interruption the occurrence of an actual gas supply interruption the re-instatement of your gas supply If you have any questions regarding these then please contact our Gas Customer Service and Operations Team on 0870 161 1030 or email us at: i&ccustomercontact@npower.com * Calls made from a BT landlines will be charged at national rates. Calls charges from non-bt landlines may vary, callers should check with their provider before calling. 8
FAX To: From: Fax: Pages: Phone: Re: Gas Supply Interruption Warning Cc: WARNING Date: of possible Gas Supply interruption The gas transporter whose network your site is connected to believes there is a high probability that they will be interrupting sites in your region from for a minimum of days. SAMPLE We will notify you when this likelihood is reduced. Please do not take any action now This is only a warning We will contact you if you are required to interrupt your gas supply. If you have any questions please call us on 01793 893102 (or fax 01793 892711). Regards Gas Operations RWE Trading (on behalf of Npower Commercial Gas Ltd/Npower Direct Ltd) 9
FAX To: From: Fax: Pages: Phone: Re: Test Interruption Warning Cc: WARNING of a test interruption npower will be carrying out a test interruption out of normal hours to prepare for potential gas supply interruptions during the forthcoming new gas year beginning on 1st October. Date: SAMPLE This will involve us contacting your site between 19:00 and 24:00 during September 2006 and checking we are able to contact the person who would turn off your Interruptible gas supply. It is imperative that you comply fully with the instructions as part of the test. We will closely monitor your site s performance. Please do not take any action now This is only a warning of a future TEST Please confirm immediately by return of this fax the relevant Authorised Customer Contact details, and ensure your internal procedures are in place. These contacts should be fully aware how to effect a gas interruption on the site. In the event of a real interruption you are reminded that failing to interrupt could result in disconnection, severe financial penalties and a safety warning. Site name Authorised Customer Contact 1 Authorised Customer Contact 2 Authorised Customer Contact 3 Title Name 24 hour tel. 24 hour fax number for receipt of Interruption Notice Authorised signatory Job Title If you have any questions please call us on 0870 161 1030* (or fax 0121 541 2893). Alternatively you can email us at i&ccustomercontact@npower.com Regards Gas Operations RWE Trading (on behalf of Npower Commercial Gas Ltd/Npower Direct Ltd) * Calls made from a BT landlines will be charged at national rates. Calls charges from non-bt landlines may vary, callers should check with their provider before calling. 10
FAX To: From: Fax: Pages: Phone: Re: Gas Supply Interruption Cc: URGENT Date: notification of Gas Supply interruption We are notifying you that the gas transporter whose network your site is connected to has called a gas supply interruption at your site. You are required to switch off your gas supply from on. The expected duration of the interruption is. We will notify you when your supply may be restored. SAMPLE Do not recommence taking gas until we notify you that you may do so You must confirm by return of fax to 01793 892711 that your gas supply will cease by the time above, to prevent further action being taken. If you have any questions please call us on 01793 893102 (or fax 01793 892711). Failure to interrupt could have serious financial consequences for your company and could compromise the safety of the gas network Please confirm receipt of this fax by return Received by: Date: Time: Regards Gas Operations RWE Trading (on behalf of Npower Commercial Gas Ltd/Npower Direct Ltd) 11
FAX To: From: Fax: Pages: Phone: Re: Gas Supply Restoration Cc: URGENT Date: notification of Gas Supply reinstatement We are notifying you that your gas transporter has confirmed that your gas supply can be restored to your site, following the interruption. SAMPLE You may switch on your gas supply from on. Thank you for your co-operation in this matter. If you have any questions please call us on 01793 893102 (or fax 01793 892711). Regards Gas Operations RWE Trading (on behalf of Npower Commercial Gas Ltd/Npower Direct Ltd) 12
Other interruption services available Over the years additional products have been introduced to provide some degree of flexibility for Interruptible gas customers. When demands on gas transportation networks exceed capacity, the relevant gas transporter must reduce demand to overcome the shortfall, thus maintaining safe and secure supplies to Firm users. Due to its nature, when a gas interruption is called, Interruptible customers are obliged to turn all gas supplies off and where possible switch to an alternative fuel. Whilst this gives them the benefit of lower transportation costs, the practicalities of turning everything off can be difficult to manage, especially when some essential services are driven by gas. npower is a leading supplier of gas and electricity to businesses in the UK and can offer our gas customers protection against full Interruption. IFA The Interruptible Firm Allowance (IFA) was developed to help you keep essential site services running and hence avoid punitive charges that could arise if you failed to interrupt all supply of gas to the site. The available capacity of an IFA is always limited by the relevant transporter due to local network constraints at the time and cannot be exceeded, otherwise this would in itself be deemed as a failure to interrupt. npower can offer you some protection against full interruptions through an IFA agreement. There is a one-off charge and an IFA contract runs for 12 months from 1st October (the gas year). They are transferable between suppliers. Partial Interruption Partial Interruption allows customers to potentially turn down their supply in various agreed tranches from full load to zero. You may therefore be able to run some services but could still be asked to turn off completely. Swap Option This allows equivalent supply points, one Firm and one Interruptible, to swap their supply status on a permanent basis. Buddying Option This allows the temporary reallocation of Firm capacity to an Interruptible supply point where system constraints permit. Likelihood of Interruption This service gives the risk of an interruption being called and is available daily on the National Grid website http://www.nationalgrid.com/uk/gas/data/interruptions/. More details on these services For further information please contact your Account Manager or call our Gas Operations Team on 0870 161 1030* Visit our website at: http://www.npower.com/in_business/gas/gas_interruptions.html Alternatively email us at i&ccustomercontact@npower.com 13
Commercial interruptions This would involve a similar interruptions process, but with npower determining the requirement for interruption and not National Grid Gas/DNOs. This would be in addition to the 45 days required by National Grid Gas/DNOs. In the event of an actual interruption called by National Grid Gas/DNOs during a Commercial Interruption called by npower, National Grid Gas/DNOs interruption would take precedence. Please contact your account manager if you would like further details regarding this. * Calls made from a BT landlines will be charged at national rates. Calls charges from non-bt landlines may vary, callers should check with their provider before calling. 14
Failure to interrupt Failure to interrupt carries with it severe financial consequences. With a first failure, the charge levied by National Grid Gas/DNOs is twice the annual NTS/LDZ capacity charge regardless of the excess gas offtaken. On subsequent days, the charge is calculated using actual off-take multiplied by twice the difference between gas and gas oil prices as published by the Department of Trade and Industry. If you do not turn your gas off, National Grid Gas/DNO engineers have the right to enter your site and isolate the supplies accordingly. Customers who have failed to interrupt have seen bills for many tens of thousands of pounds for an individual failure, and your site could be re-designated as Firm for charging purposes for a period of 2 years and still be asked to interrupt. Multiple failures could involve liabilities of significant sums of money. Disconnection could follow, along with a safety warning. 15
Summary of contact points npower 24 hour contacts Gas Operations Team Telephone: 01793 893102 Fax: 01793 892711 Email: gas.ops.trading@rwe.com National Grid Gas contacts Internet warning information service: http://www.nationalgrid.com/uk/gas/data/interruptions/ Gas Balancing Alert text service: http://www.nationalgrid.com/uk/gas/data/subscribe npower services For further information on npower services contact your local Account Manager or visit our website: http://www.npower.com/in_business/gas/ Telephone calls may be monitored and recorded for training purposes npower is a registered trademark and the trading name of Npower Direct (registered in England and Wales No. 3782443) and associated companies. Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB. npm3266/k0013/10.05