Connected System Exit PointsOptions for strategic regime change

Chris Warner

Option 1 - The DCUSA Model

DNO invoices the aggregate transportation invoice to the iGT based upon load information provided to it by the iGT

Subsequently, the iGT would levy an aggregate transportation invoice (in respect of both DNO/NTS and iGT services) per User (to a meter point level of detail) registered at the relevant CSEP Network

Option 1 - The DCUSA Model

Option 1 - Assumptions

Obligations on lead/nesting iGT to procure/provide load data

Replica of NTS reform model

Option 1 - Advantages

Fewer counterparties for the DNO Single transportation services invoice for the User Effectively places an obligation on iGTs to reconcile

Meter Point data Consistent with NTS/DNO relationship Incorporates solution for nested arrangements

(based on the relevant ‘assumption’)

Option 1 – Disadvantages

Reliance on information provision by iGTs who have no commercial interest in providing the data

Potentially not effective unless the offtake is metered (option 1A)

Lack of benefit for iGT in the provision of timely and accurate data

As the iGT would effectively be charged as a User (Shipper) of the NTS/DN networks this is likely to require exemption from Gas Act section 7(3) and section 7A(3)

Likely to require new Transporter licence obligation Credit arrangements required between NTS/DNO and iGT Lack of clarity for the requirements in respect of nested

arrangements

Option 2 - Individual Meter Point Detail

load information (including Larger Supply Point (LSP) reconciliation volumes) will be issued by iGTs to DNOs at a meter point level of detail. Any changes in respect of load or Registered User (transfers) will be required to be issued to DNOs on daily basis

‘de-coupling’ of the physical and commercial processes such that the registration of the first Supply Point/s at a CSEP will not require the DNO authorisation of the engineering aspects of the CSEP connection

nested iGTs would be required to issue appropriate meter point information directly to xoserve along with meter point reconciliation volumes for LSPs

Option 2 - Individual Meter Point Detail

Option 2 - Advantages

Enables Users to identify meter point mismatches between NTS/DNO and iGT invoices

Highlights the major cause of the current Supply Point mis-match

Provides method of capturing nested load

Option 2 – Disadvantages

Continued requirement for information provision by iGTs for whom there is no benefit in the provision of the data

Requires DNOs to establish an alternative method of addressing engineering validation and potential load breaches as these would no longer frustrate the commercial processes

Requires significant system change and also the management of a greater quantity of data items

New/revised iGT-DNO file formats required

Option 3 - Industry Data Manager

The DNOs’ service provider (DSP) would build and maintain a Supply Points Register on behalf of iGTs to support both the DNO invoicing of Users and the iGTs UNC obligation to maintain a Supply Point Register

Users would perform their SPA transactions directly with the DSP and consequently the iGT would take information from this register (either via direct access or periodic data feed?) to facilitate its own invoicing

The DSP would potentially utilise a clone of the existing Sites and Meters database and therefore file format requirements are likely to be in line with those in use for directly connected Supply Points

Option 3 - Industry Data Manager

DSP

iGT

User 1

User 2

SPA Transactions

SPA Data feed

iGT Transportation Charges

DNO Transportation Charges

Option 3 - Assumptions

All iGTs utilise common service provider (the DSP) pursuant to a licence obligation

All parties (beneficiaries) required to contribute to cost

Data cleansing exercise required for implementation

Option 3 - Advantages

Removes the majority of the reliance on data provision by iGTs

DNO agent maintains control of data necessary to levy NTS/DNO invoice

Single dataset utilised to levy NTS/DNO and iGT invoices Single communication protocol for User – Transporter

communications Allows the streamlining of demand allocation and settlement

processes operated by the DNOs agent Provides a greater level of confidence to DNOs that costs

are being apportioned accurately in line with UNC and licence

Proven model already exist (Sites and Meters) – a clone system is likely to deliver the solution

Reduce SCOGES costs for iGTs

Option 3 – Disadvantages

Requires major regime reform – new contractual terms (and potentially licence obligations?) would be required

Requires the management of a greater quantity of iGT related data by DSP. (c.1million additional Supply Points)

Requires consideration of set up and ongoing funding issues

Option 4 - Enhance Current Regime (interim solution?)

maintain the current regime and make incremental improvements such as ‘de-coupling’ of the physical and commercial processes such that the registration of the first Supply Point/s at a CSEP will not require the DNO authorisation of the engineering aspects of the CSEP connection

Option 4 - Enhance Current Regime (interim solution?)

DN/iDN

Shipper iGT

Uniform Network

Code

iGT Network Code

NExA

SPA Activity

Meter Readings

SPA Aggregate

DataReconciliation

Volume

Invoice (iGT Network)

Invoice (NTS/DN/iDN

Network)

xoserve

Option 4 - Advantages

Offers ‘solutions’ that can potentially be delivered in the short term

Maintains the current LMN level of detail held by xoserve

Option 4 – Disadvantages

Requires DNOs to establish an alternative method of addressing engineering validation and potential load breaches as these will no longer frustrate the commercial processes

Does not enable Users to directly identify meter point discrepancies

Continued requirement for information provision by iGTs for whom there is no benefit in the provision the data

Requires potential system and validation changes for xoserve / DNO processes