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Daily Meter Reading – Mandatory Population

Daily Meter Reading – Mandatory Population. Chris Warner Distribution Workgroup - June 2013. Daily Meter Reading – Mandatory Population. Current ‘bundled’ regime virtually unchanged since inception of Network Code in 1996. Known as ‘DMM’ and ‘DMV’

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Daily Meter Reading – Mandatory Population

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  1. Daily Meter Reading – Mandatory Population Chris Warner Distribution Workgroup - June 2013

  2. Daily Meter Reading – Mandatory Population • Current ‘bundled’ regime virtually unchanged since inception of Network Code in 1996. Known as ‘DMM’ and ‘DMV’ • Overall population has declined significantly; • Original DM ‘mandatory threshold’ >75,000 TPA (approximately 25,000 sites nationally) • Interruption reform – population reduced to 4 sites in two networks, reducing further to one (NW) network for the 2013 interruption auction. • Current NGD population 694 sites • Daily Meter Reading (Voluntary – DMV) due to be eliminated (Mod 0345) by 1st October 2014 - further reduction to 190 sites

  3. Daily Meter Reading – Mandatory Population • Criticality of daily data availability for Transportation purposes has declined significantly – data is now of only marginal benefit to Transporters: • 4 sites subject to Interruptible contract on NGD’s networks • Limited number of ‘sensitive’ sites requiring ‘within day’ monitoring • However, a complex systems and process infrastructure is required to ensure current UNC obligations can be met by the Transporter • Legacy systems are life expired and inefficient. Timely action is necessary

  4. Daily Meter Reading – Mandatory Population • Timely that regime should be reviewed • UNC provisions over complex and outdated • Opportunity to introduce competition into reading arrangements • Charges not cost reflective due to limitations of Meter Reading ‘price cap’ • Current charges are: Datalogger - £493.17 Meter Reading - £500.10 • Not cost effective or efficient for Transporters and customers to continue to administer in current form

  5. Daily Meter Reading – Mandatory Population • Opportunity to pass on savings to Shippers and consumers • Suggested way forward - Simplification of regime • Not proposed to ‘unbundle’ DMM reading arrangements at this time • Areas for consideration: • Modify existing obligations to provide readings to Shippers by 11:00 on D+1 • Review performance liability framework

  6. Daily Meter Reading – Mandatory Population • Review Daily Read Error provisions • Revisit other (check reads, resynchronisation, etc) • Potential option for Shippers to make available data from reading equipment to Transporter (subject to certain safeguards and assurances)

  7. Daily Meter Reading – Mandatory Population • Objective of simplification is to maintain a sustainable, ‘fit for purpose’ arrangements for the limited population of DMM sites • Addresses costs constraints • Opportunity to tailor services • Consistent with Project Nexus

  8. Daily Meter Reading – Mandatory Population • Need to understand cost/benefit of simplification on Transporters and Shippers • Alternatives could be to: • substantially increase charges through raising ‘cap’ • Seek disapplication of the Price Control • Move to AMR based liability free regime • Seek to ‘unbundle’ DMM reading arrangements in its entirety

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