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PN UNC Workgroup (Settlement topic)

PN UNC Workgroup (Settlement topic). Allocations Overview 4 th December 2012. Background. Allocation Scaling Adjustment discussed and principle agreed in Settlement BRD Reconciliation Scaling Adjustment agreed in Reconciliation BRD Market Share changed from throughput to AQ in PN UNC

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PN UNC Workgroup (Settlement topic)

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  1. PN UNC Workgroup (Settlement topic) Allocations Overview 4th December 2012

  2. Background • Allocation Scaling Adjustment discussed and principle agreed in Settlement BRD • Reconciliation Scaling Adjustment agreed in Reconciliation BRD • Market Share changed from throughput to AQ in PN UNC • During internal analysis questions have been raised with the new arrangements • None of which are un resolvable but • clarification needed for legal text and • assurance that we all have the same understanding of the arrangements

  3. Allocation processes – Timelines D - 1 GAS DAY = D D+1 to D+5 Gas Nominations Gas Allocations INPUTS Total LDZ Energy, Actual DM Reads Estimated LDZ Energy, DM Estimates (from Shippers) final final ALPs,DAFs,AQs final final OUTPUTS Daily Energy Nominations Daily Energy Allocations Informs gas purchasing Total System Outputs Energy Balancing Indebtedness Gas Nominations = Day Ahead Forecasting

  4. Future Allocation – Project Nexus 2. Shrinkage c Daily Metered Non-Daily Metered 5. Allocation Scaling Adjustment – remaining energy is smeared at LDZ portfolio level • Allocation as described in Settlement BRD • Unidentified Gas shared at portfolio level in each LDZ 3. Larger DM sector – Process 1 & 2 – Actual Measurements 1. Total Energy as measured into the LDZ 4. Improved standalone estimation for NDM sector (Process 3 & 4)

  5. Current Process Daily Metered Non-Daily Metered • AUGE allocates unidentified gas from SSP market to LSP market & potentially DM’s • % of unidentified is defined in advance based on historical information

  6. Allocation Scaling Adjustment Daily Metered Non-Daily Metered Total Energy allocated within an LDZ Unidentified gas • Unidentified Gas shared at Shipper portfolio level in each LDZ • Applied to all Products (daily metered and non daily metered) • Reconciliation Scaling Adjustment adjusts the share following • a reconciliation of a meter point

  7. Issues • Should the share of unidentified gas be shared using the same data? • Allocation Scaling Adjustment share is based on consumption at GFD+5 • Reconciliation Scaling Adjustment share is based on AQ • What is the future role of the AUGE in the new arrangements? • Possible Options? • No AUGE • AUGE reviews unidentified gas & makes recommendations for process change, no impact to sharing • AUGE sets rules for share of both Allocation & Reconciliation Scaling Adjustment

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