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LDZ Shrinkage Forum. Jonathan Dennett Elexon 22 nd June 2006. Our Proposals. 0.621%. Agenda. LDZ Shrinkage Overview – National Grid Initial LDZ Shrinkage Factor Proposals 2006/07. 1. LDZ Shrinkage Overview. 1.1 Structure for the discussion of Initial Proposals for LDZ Shrinkage.
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LDZ Shrinkage Forum Jonathan Dennett Elexon 22nd June 2006
Our Proposals 0.621%
Agenda • LDZ Shrinkage Overview – National Grid • Initial LDZ Shrinkage Factor Proposals 2006/07
1.1 Structure for the discussion of Initial Proposals for LDZ Shrinkage • LDZ Shrinkage Obligations • What the Shrinkage Factors are and how they are used • The Shrinkage components
1.2 LDZ Shrinkage Obligations • To replace the gas that is used or lost by the Distribution Networks
1.3 What the Shrinkage Factors are and how they are used (Part 1) • The Gas Transporter buys its Shrinkage Gas by LDZ, as this enables local Shrinkage performance to be taken into account • The Gas Transporter buys Shrinkage Gas each day to replace the gas that is lost or used on that day • To enable this to occur, the Gas Transporter buys a proportion of throughput in each LDZ each day • Each LDZ has a ‘Shrinkage Factor’ that is a factor of consumption, which the Gas Transporter is then obliged to buy each day for the particular LDZ (the next slide refers)
1.3 What the Shrinkage Factors are and how they are used (Part 2) • Calculating a Shrinkage Factor • Each LDZ has its own Shrinkage Energy, Consumption Energy and therefore Shrinkage Factor
1.4 LDZ Shrinkage components • There are three components to LDZ Shrinkage; they are: • Leakage • Own Use Gas • Theft of Gas • The amount of energy in respect of each of these components is calculated in a different way
National Grid’s 2006/07 Gas Year Initial LDZShrinkage Factor Proposals
2. Index of national Grid’s LDZ Shrinkage Slides • Leakage • Low Pressure • Medium Pressure • AGI • Identified Events • Own Use Gas • Theft of Gas • Shrinkage energy summary • Annual Consumption • Proposed Shrinkage Factors
2.1 Calculation of Leakage Methodology • In every case, we have applied the same methodology as last year • We have used revised data in the calculations
2.1.4 Identified Gas Release Events (Energy Assessment)
2.1.5 Own Use Gas • National Grid proposes to use accurate values for Own Use Gas in the 2006 proposal
2.1.6 Theft of Gas • National Grid is not proposing any change to Theft of Gas at this time