Mod 273 – Governance of Feasibility Studies

Customer Experiences

Julie Cox

Transmission Workstream - 4th March 2010

Member Survey

• AEP Members were surveyed to gather information on their experiences of obtaining or changing NExAs– Timescales

– Cost

– Process

• Comments relate to nearly 20 sites with NExAs• NTS and DN, Supply Points and CSEPs• Minimum and Full Connections

Timescales

• 6 months to get a first quote for a study • 18 months for a study then 12 months for minor

amendment request • 12 months from initial request to projected completion of

study• 18 months end-to-end for NExA• It all seems to take longer than it used to….. • Lethargic response is the norm

• CCGTs can be built in 24 months this can become a

critical path issue

Costs

• Flow rate change at existing site outside range quoted by NG.

• Draft Feasibility agreement no mechanism to inform party of changes to costs or to approve them

• Budget met but set high to start with and higher for each project

• Never come in under budget - little appetite for cost control

• Never had any clarity on actual costs

• Blank cheques?

Process

• Information requirements – not always clear at start, eventually becomes clear, but varies for each project, seem to need more and more…

• Do not understand why some info needed• Information required generally available

• User requirements may change during feasibility study period as often runs in parallel with tendering, contractual discussions etc. Its unrealistic to expect it not to change…..

• NG do not appear to fully understand the implications of NExAs being delayed on power station projects

Anything else…..

• In the last year or so the people looking after this for NG

NTS sites seem to have begun to be more commercially aware which is helpful. The DNs have not….

Summary

• Issues with costs, timescales, commercial implications

• Scope for – Better project management approach

– Standardisation of information requirements

– Cost control

– Improved communications and understanding