Centrica and Centrica Storage Limited (CSL) welcome the Competition & Markets Authority's (CMA) announcement that they have launched a review of the Rough Undertakings.
In 2003, following CSL’s acquisition of the Rough Gas Storage Facility from Dynegy Group, Centrica Plc and CSL gave undertakings (the Rough Undertakings) to the Secretary of State for Trade and Industry pursuant to the Fair Trading Act 1973.
Centrica and CSL are seeking changes to the Undertakings which will provide the CMA an expedited method of changing the amount of capacity CSL is required to sell ahead of the Storage Year in response to a significant change to Rough’s physical capabilities. The primary aim of Centrica's and CSL’s proposed changes is to ensure CSL is not obliged to sell more storage services than Rough can physically deliver.
Centrica and CSL’s request was triggered by the reduction in Rough’s physical capabilities following the identification of an issue affecting the maximum operating pressure of the Rough wells (see REMIT 2015-33 revisions 1 – 5 for more details). As set out in revision 5, to determine whether the current pressure limit can be lifted, CSL is undertaking testing and verification works which will last until at least the end of the Summer 2016 injection season (between September and December 2016).
The CMA's review announcement can be found here.