IUK publishes Booking Incentives within latest Charging Statement
IUK is pleased to announce the introduction of three new product offerings to further enhance the optionality for our Shippers when booking capacity via IUK’s Implicit Allocation Mechanism. These products will be available for purchase from IUK’s IAM Partners from 13:00 UKT 3 August 2020.
Quarterly and Seasonal Incentives
Following the strong uptake of the booking incentive introduced by IUK during Summer 2020, IUK is expanding this into a 3 month rolling incentive where a Shipper can purchase 3 consecutive months of capacity and achieve IUK’s Quarterly tariff (1.5p/th) rather than the individual monthly capacity tariffs (across the lowest matching volume, same flow direction). Such a rolling product allows Shippers to secure capacity across a non-standard quarter at the quarterly tariff, better matching individual requirements. Examples are UK Import for Dec-Jan-Feb or UK Export for March-April-May. As a reminder, IUK offers Monthly capacity up to M+8.
From 3 August 2020, Shippers will be able to purchase a Bespoke Quarterly Product out until 30 April 2021. The applicable tariffs are available here in p/th.
In addition, IUK is also expanding the Seasonal capacity offering to recognise the different fundamentals across the Winter-Summer period;
- Q1 2021 UK Import Capacity and Q2 2021 UK Export Capacity; or
- Q1 2021 UK Import Capacity and Q3 2021 UK Export Capacity.
- Q2 2021 UK Export Capacity and Q1 2022 UK Import Capacity; or
- Q3 2021 UK Export Capacity and Q1 2022 UK Import Capacity.
Shippers purchasing this capacity will be eligible for the Seasonal Capacity Tariff (1.4p/th) rather than the individual Quarterly tariffs (1.5p/th) (across the lowest matching volume). This provides additional flexibility as shippers can align bookings with flows to/from the Continent and are no longer required to purchase the standard quarters within the seasons (i.e. Q4+Q1 for Winter and Q2+Q3 for Summer) to benefit from the lower seasonal tariff.
Bi-directional Capacity Offer
For Q4 2020 IUK is introducing a bi-directional capacity product which offers an incentive for Shippers accessing capacity in both physical flow directions across the same period. This will be offered on Monthly and Quarterly products, i.e. Oct, Nov, Dec separately and the Q4-20 as a whole, maximising the opportunity for Shippers to generate further extrinsic value on their bookings and increase their optionality, whilst leveraging IUK’s physical capability to change flow direction with short notice. The product is structured as a combination of both an UK import and export booking, with a discount on the UK Export booking. Shippers can nominate the flow direction and quantities until Hour-2 as currently.
Shippers who purchase capacity in both flow directions (matching volume, matching product) will receive a discount of up to 90% on their UK Export booking. The applicable tariffs for each period are available in p/th here.
IUK's standard tariffs for Gas Year 2020-21 remain unchanged and are available in p/th here.
For all three new incentives, all of the capacity must be purchased prior to the first day on which the capacity can be utilised. The offerings are formally reflected in IUK’s latest Charging Statement, available here.