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Use or lose

A provision which decreases a shipper's right to capacity if the shipper does not use it at a certain level. The purpose of such a provision is to encourage accurate capacity nominations and full pipeline utilization. Because firm shippers pay a reservation charge for capacity, whether or not they fully utilise that capacity, the Commission has found that no use-or-lose provision may apply to firm transportation.

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  • Harry8L
  • (London, United Kingdom)

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