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Modification 175 – Solution Summary

UNC Review Group 175 – Encouraging Participation in the Elective Daily Metered Regime 26 th June 2008. Modification 175 – Solution Summary. Key aspects of the Solution Proposed: Tactical Solution based upon existing DM business rules, analysed against defined volume tranches

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Modification 175 – Solution Summary

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  1. UNC Review Group 175 – Encouraging Participation in the Elective Daily Metered Regime26th June 2008

  2. Modification 175 – Solution Summary • Key aspects of the Solution Proposed: • Tactical Solution based upon existing DM business rules, analysed against defined volume tranches • Substantially follows the same UNC rules as for existing DM population • Sites nominated as DM Elective will be subject to Daily Read Provision by Shippers • Nominated sites will be treated the same as mandatory DM for the purposes of Settlement, including Reconciliation and Adjustment Processes • Minimise SPA Impacts on Shippers

  3. Modification 175 – Scope • Scope: • DM Elective market shall not include sites where the Supply Meter Point AQ is in excess of 58.6 GWh. • DM Elective market shall not include Interruptible meter points. • DM Elective market shall not include Unique Sites. • Meter points with an AQ greater than 73,200kWh may elect to be DM. Market Sector Code shall not be relevant. • Prime and Sub meter points may elect to become DM. • Where a meter point elects to become DM and is part of Prime and Sub metering arrangement, it is not required that all meter points within such configuration become DM Elective. • The DM Elective service response provided by xoserve includes only Supply Meter Points directly connected to the Large Transporters Distribution Networks.

  4. DM Elective Service • Following the implementation of UKL Technology refresh capacity does now exist to enable growth in the daily read market • Immediate growth up to 25,000 supply points - with a potential to continue through to 50,000 following initial stage system and process performance monitoring. • Within day (&D+5) activities associated with incorrect consumptions, failed reads and resynch visits carry high operational overhead. • Utilising DM Mandatory processes as a tactical solution has its limits and inefficiencies for a growing AMR market. • AMR failure rates are a key factor in determining the operational overhead and therefore ongoing costs, or case for investment in process enhancement / strategic solution • Existing DM reconciliation rules result in a complex settlement regime (Energy & Transportation) with high data and validation dependency

  5. Modification 175 – Next Steps • Confirmation of Business Rules and Assumptions • Complexity of System Change requires formal analysis and engagement with ODC / Infrastructure Provider. • Undertake analysis based upon defined Business Rules and identified processes, to define: • Cost of Change • Cost to Operate • Confirm Process Capacity Assumptions • Assess Feasibility and Costs against Volume Tranches

  6. Appendix – Detailed Business Rules

  7. Modification 175 – Business Rules • Where a Supply Meter Point no longer meets the criteria of a DM Mandatory Supply Meter Point the shipper may elect to reconfirm such meter points as DM Elective or NDM. • Where such meter points remain read by DMSP, these shall be DM Voluntary Meter Point. • Where a DM Elective Supply Meter Point meets the criteria of a DM Mandatory Supply Meter Point the shipper MUST reconfirm as DM Mandatory. • Where a DM Voluntary Meter Point is nominated as DM Elective, any future change back to DM Mandatory will incur Logger Installation Charges for relevant Shipper.

  8. Modification 175 – Treatment of Readings - Business Rules for Base Level Service • Readings from DM Mandatory meter points shall continue to be provided by DMSPs within the same timescales as currently. • Readings for DM Elective supply meter points will be submitted via I’X by Shippers. • DM Elective Readings must be received within file by [10am] so that downstream processes are not impacted. • DM Elective Readings file can only contain Actual Readings. • Validation of Readings within this file shall be performed by Shippers prior to submission. • Sense check validation (e.g. number of dials) will be applied by xoserve. • UNC Validation Rules shall be applied by xoserve. • Where an acceptable Actual Reading is not provided, xoserve shall generate an Estimated Reading. This reading shall be charged to the Shipper.

  9. Modification 175 – Treatment of Readings - Business Rules • Where an Estimated Reading is loaded this may be replaced by a Shipper provided Actual Reading up to D+5. The Estimated Reading shall remain chargeable. • Where an Actual Reading is provided this cannot be replaced by a subsequent Actual Reading. • Provision of Actual readings by 11.00am to Shippers will not be required. Consequently, the existing liabilities are not relevant. • An Annual Physical Check Reading is mandatory. A new process to obtain such readings is required when readings are not notified to xoserve.

  10. Modification 175 – Issues for Wider Consultation • Treatment of remaining NDM sites where a satisfactory statistical profile cannot be derived for Demand Estimation within the relevant End User Category. • Treatment of Reconciliation – Amended Suppression Criteria - Impacts on other Market Sectors. • Reconciliation of Prime and Sub meter points where DM Elective meter points are included within the configuration. Currently all meter points within a P&S configuration are to be read by the same party.

  11. Modification 175 – Assumptions • DM Elective meter points will be identified via SPA Processes as DM Elective. • DM Elective meter points shall be subject to ratchets. • Only NDM Supply Points shall be subject to Rolling AQ Review. Once a site is classified as DM – either as Elective or Mandatory - this will be subject to annual review only. • DM Elective remote reading equipment data shall not be stored or maintained by xoserve on UKLink systems.

  12. Modification 175 – System Changes Identified • Provision Reading Process • Setting the Resynchronisation Flag • Supply Point Administration Processes • Identification of DM Elective Sites • Reconciliation and Adjustment Invoicing • Assessment of Amended Suppression Criteria

  13. Modification 175 – Further Processes Identified • Existing DM Processes: • Input of the Annual Check Visit Date • Input Resynchronisation Readings • Input Resynchronisation Volume and Rollover Value • Valid Zeroes Flagging • Offline Consumption Adjustments • Flag Datalogger Faults • Reconciliation of Estimates between Actuals • New Processes to be defined: • Definition of Must Check Visit and Invoicing • Invoice for the Provision of Estimates • Notification of DM Elective / DM Mandatory switches to Networks

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