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UNC Modification 0335 – Offtake Metering Error Payment Timescales

UNC Modification 0335 – Offtake Metering Error Payment Timescales. Jon Wisdom 21 st October 2010. Offtake Metering Error. Occurs when the metering at the LDZ/NTS boundary or LDZ/LDZ boundary is in error and either produces an over-read or an under-read.

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UNC Modification 0335 – Offtake Metering Error Payment Timescales

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  1. UNC Modification 0335 – Offtake Metering Error Payment Timescales Jon Wisdom 21st October 2010

  2. Offtake Metering Error • Occurs when the metering at the LDZ/NTS boundary or LDZ/LDZ boundary is in error and either produces an over-read or an under-read. • Majority of these have been under reads when analysed. The gas that has been unallocated is debited to RbD and all Shippers within that area are invoiced. • This can be for a period of a few months or several years. • Within 2010 around 4500 GWh of error has been reported. The majority of this error was caused by a single error in Aberdeen • Within 2009 around 1000 GWh of error was reported. The majority of this was a National Grid Distribution error caused by faulty orifice plate metering spread across several offtakes

  3. Significant Recent Events Various – National Grid Distribution 2009 Large number of offtake meter points - 800GWh under recorded BRAISHFIELD – Scotia Gas Networks 2010 3 month period of error -1200 GWh under recorded ABERDEEN – Scotia Gas Networks 2010 12 month period of error – 3200 GWh under recorded TOTAL in last 2 years: 5200 GWh

  4. Current Process • Unallocated gas reported regularly by National Grid Transmission • Offtake Metering Errors identified by Downstream Trasnporter and quantified. If over 50GWh are assessed by an Independent Technial Expert (ITE). • Following the quantification by an ITE invoicing is carried out in which Shippers are debited in a single invoice regardless of size of error and time across which it occurs. • This is inequitable and impacts Shipper cashflow and presents a barrier to competition.

  5. Proposed Change RWE npower propose that to rectify this the Downstream Transporter in whose area the network occurred will: Follow the current Significant Measurement Error Process as currently documented. Appoint an ITE as necessary and quantify the amount of gas Be accountable for all energy and transportation costs for this error initially Invoice Shippers in equal installments across an identical period to that of the error In the case of Aberdeen 12 invoices as the error was over 12 months.

  6. Advantages Places Commercial consequences of metering error on correct Code parties Will allow Shippers to manage cashflow more appropriately and reduces need for risk premia to be applied to customers Removes a barrier to competition as will allow small Shippers and new market participants to operate without fear of large unexpected hit to cashflow Reduces risk of unexpected Shipper cash call in peak consumption periods Encourages investment in and development of LDZ offtake meters.

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