In November 2016, following the first year anniversary of the introduction of Market-Based Balancing (MBB), Gas Industry Co released Review of Market-Based Balancing (MBB Review) for stakeholder feedback. The MBB Review found that primary and secondary balancing had significantly improved, and that there was scope for further improvement.
An Analysis of Submissions on the MBB Review was prepared by Gas Industry Co following the ten stakeholder submissions received in December 2016.
The Analysis found that most submitters considered that Gas Industry Co’s approach to the MBB Review was reasonable and helpful, with some submitters suggesting further analysis was needed. As part of the next steps reflected in the MBB Submissions Analysis, Gas Industry Co requested information from retailers regarding the incremental costs of implementing MBB. In general, this showed that the costs varied considerably between shippers, but that the cost estimates used in the Cost Benefit Analysis supporting MBB were of the right order.
The Analysis of Submissions, submissions received, the MBB Review, and The costs of implementing MBB are available below in RELATED DOCUMENTS.
MBB is the transmission pipeline balancing regime designed by Maui Development Limited (MDL). MBB came into effect on 1 October 2015. Gas Industry Co responded to a 10 October 2014 Change Request from MDL to consider and make a recommendation in respect of proposed changes to the Maui Pipeline Operating Code (MPOC) to introduce daily cast-out of any user imbalances (over an allowed tolerance). Gas Industry Co concluded that MBB broadly aligned with Gas Act objectives, and would improve on the (then) current balancing arrangements, and its Final Recommendation supported the Market-Based Balancing Change Request (MBBCR). More information on MBBCR can be found here.