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Genuine Reconciliation. Distribution Workstream 23 rd October 2008. Background. Modification Proposal 228 Raised on 8 th October Contains element of ‘ Genuine Reconciliation ’ Reflects fact that LSP AQs are reducing at a faster rate than SSP AQs. AQ impact on reconciliation.
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Genuine Reconciliation Distribution Workstream 23rd October 2008
Background • Modification Proposal 228 • Raised on 8th October • Contains element of ‘Genuine Reconciliation’ • Reflects fact that LSP AQs are reducing at a faster rate than SSP AQs
AQ impact on reconciliation • Initial Allocation of Gas is based on AQ values, scaled to match the total consumed. • If AQs were all accurate then no reconciliation would take place • If AQs are equally inaccurate then no reconciliation would take place • If AQs in one market are more or less accurate than the other then reconciliation will occur.
Site by Site Reconciliation • At a site level AQs will be higher or lower and this will always generate reconciliations. • However, these reconciliations should ‘net-off’ if the aggregate AQ was correct in the first allocation.
Change between 06/07 and 07/08 • Modification 0081 data shows that; • LSP AQs reduced from 156.6TWh to 147.46TWh between the two gas years • SSP AQs reduced from 553.7TWh to 527.5TWh during the same period • Therefore LSP AQs are dropping at a faster rate
Worked Example (27.956% - 28.283%) x 527.5 TWh = - 1.72 TWh.