P195 – Neutrality for CCGT BMUs Switching Between Gas and Distillate
Formal title: Neutrality for CCGT BMUs Switching Between Gas and Distillate
Current Status
Summary
It is clear that a high level of fuel switching: from gas to distillate and back to gas; is likely to be required for this coming winter (and perhaps beyond). CCGT plants are designed primarily to operate on gas and whilst some are equipped to operate distillate this mode of operation presents additional risk. This is because each time such CCGT switches fuels from gas to distillate and back again there is a risk that these operations cause the plant to trip-off or fail to switch as intended. This, in turn, creates an exposure to electricity cashout prices. It is proposed that this defect be rectified by holding CCGT BMUs that have the capability to switch between gas and distillate neutral to any cashout exposure that arises during the period of fuel switching at times of stress on either the electricity or gas systems.
Progression
The Proposed Modification was rejected by the Authority on 25 November 2005.