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Long Term Consumption Adjustments

Long Term Consumption Adjustments. Presentation to HWG 23rd February 2011. ESB Networks & NIE T&D. Agenda. Issues Mod 66_08 Outside Settlement Determination Long-term Consumption Adjustments - Options Other factors in dealing with LTCA Next Steps. Issues.

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Long Term Consumption Adjustments

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  1. Long Term Consumption Adjustments Presentation to HWG 23rd February 2011. ESB Networks & NIE T&D.

  2. Agenda • Issues • Mod 66_08 • Outside Settlement Determination • Long-term Consumption Adjustments - Options • Other factors in dealing with LTCA • Next Steps

  3. Issues • Mod 66_08 approved – need to agree a process in the Retail Market • Increased activity in the Market – all Suppliers impacted: • In ROI Suppliers may not receive full Energy or TUoS adjustments • In NI Suppliers may not receive full Energy, PSO or SSS adjustments • Customer Complaints if overcharges are not reimbursed by Suppliers • Problems more complex as market opening progresses • Need to review and revise the process for handling Consumption Adjustments to ensure a consistent approach for their treatment and documentation across business processes e.g. • How far back to correct data & charges • Implications for COS/CoLE • Possible revision of DSO rules and documentation • Different solution may be required post Global Aggregation • Opportunity to provide an harmonised arrangement in both retail markets.

  4. Mod 66_08 Background • Long Term Consumption Adjustments relate to errors in consumption data that would not ordinarily be rectified through Meter Data Provider (MDP) aggregation processes. These errors could arise through: • Illegal abstraction • Meter faults • Actual readings replacing estimates post 13 months. • It is proposed that errors are handled according to the following criteria: • Where the errors are identified within the 13 month Re-settlement period any portion of these errors falling within a period which has yet to have it’s final scheduled Re-settlement should be processed through the normal SEM Re-settlement processes • Where the errors are identified outside the 13 month Re-settlement period these will always be processed through an Outside Settlement Determination process • Where an Outside Settlement Determination is used, it is proposed that this is coordinated in the “Retail Market”.

  5. What is an Outside Settlement Determination? • A calculation performed outside of the Settlement Systems and Processes that is designed to achieve approximately the same cash flows as a settlement run based on correct data. • Would involve those Parties whose Meter Data was affected by the error, plus representation from the Error Supplier Unit if appropriate, representation from the Meter data Provider, the Use of System provider, Revenue Supplier Units and Customers if appropriate.

  6. Options for Addressing Long Term Consumption Adjustments Option 3 is considered in the following slides

  7. OSD – Key Principles DSOs provide data only to Market Participants Adjustments >13 Months: • DSOs to use spreadsheet applications to record kWh adjustments and forward OSD data to all participants and error account holder to enable parties to make bilateral financial settlements. • Adjustments of DUoS resettled by DSOs directly with each relevant supplier. • Error Supplier Unit issues Debits / Credits directly to Suppliers in respect of Energy / Capacity • TSOs issue Debit / Credit for TUoS directly to Suppliers • Suppliers will settle with customers for the period that they served the customer Note: • All Revenue Adjustments which cannot be rectified by reading replacements to be recorded as kwh adjustments and processed as above

  8. Data Flows ESU TSO Supplier Customer MRSO (RoI) CMS (NI) MRSO (RoI) C&MS (NI) DUoS Billing ESU = NIE ES in NI or ESB CS in RoI

  9. Revenue Vs Unit Adjustments • Revenue Adjustments - Unable to Replace / Withdraw readings in SAP/CCMB • Faulty Metering Equipment (meters, timeswitch, CTs, VT’s) • Interference to Metering Equipment or Network where meters are bypassed • Undocumented Connections where readings not available or MPRN created from current date. • Unit Adjustments – Readings can be Replaced/Withdrawn in SAP/ CCMB • Actual Meter Readings received after prolonged estimation • Incorrect Number of Digits applied to meter readings • Crossed Metering • Incorrect Multipliers applied to consumptions • Retrospective Adjustments to unmetered inventories • Undocumented Connections where readings available and MPRN created pre connection date • Adjusted Profile Data • Exclusions • MIC / Availability Changes

  10. Other Issues for Agreement / Decision • How far back to correct data – proposal: • Beginning of Problem / Incident or • Limiting date for SAP ISU / CC&B - 1st Jan ’06 in ROI or Aug ’06 in NI or • 6 Years (limitation of liability – Contract Law Act) • Should data be corrected irrespective of COS or CoLE • Supplier issues regarding debit/credit de-registered customers • Should there be a materiality threshold • Mechanism for Suppliers to make bilateral settlements • Frequency of Processing information for OSD • Market must establish historic monthly price matrix for Energy & TUoS (in ROI) • Progression to Global Aggregation Market • DSO cost recovery for provision of OSD service.

  11. Next Steps • Feedback from Participants to HWG • Establish Industry Working Group to make recommendations on implementing an Outside Settlement Determination for both jurisdictions.

  12. Draft Terms of Reference Joint Working Group • Review Options • How Suppliers deal with Deregistered Customers • Develop Price Matrices - Energy, Capacity,Imperfections, MO, TUoS (in ROI) & PSO & SSS (in NI). • Disputes Committee • Materiality Threshold • Develop a Working Practice and Code of Practice • Impact Assessment of any system changes • How to Progress to Post Global Aggregation Phase

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