Presentation Transcript

1. Supplier Charges under MOD379A

   22 March 2012
2. Summary of Business Rules 85% Performance target is based on performance levels within SSP market sector (see Mod). LSP market sector will be required to meet same standard Mod 81 reports will include information on Shippers AQ amendments submitted to date and progressive movement to performance target. AQ Performance target will be calculated individually for SSP and/or LSP portfolio. AQ Performance = T04 portfolio less new connections within Gas Year – T04 amendments and successful appeals. Note: Successful gains and losses that occur following the receipt of the T04 will be excluded from the portfolio calculation. The re-distribution of charges will be based on the same calculation to determine eligible MPRNs. Appointment of Auditor is voluntary however establishment of List of Auditor/Consultants will be required A grace period for “Supplier Charges” will apply from the point of application of the scheme, such that where performance is below 85% the Shipper will have until the completion of next Review to improve and achieve at least the 85% New entrants will be excluded from paying and receiving any charges in at least their first year and then will be subject to the same first year grace as other Shippers Supplier Charges to apply SSP - £20 LSP - £512 Suppliers with an AQ Performance target of <85% will receive an ad-hoc invoice in first available invoice run following publication of performance Suppliers charges for SSP and LSP will be combined and redistributed to all NDM Shippers who achieve 85% target based on the number of Eligible MPRNs.
3. AQ Performance – Need for Improvement AQ2007 – LSP 358,740 SSP 17,559,109 AQ2008 – LSP 328,746 SSP 18,088,731 AQ2009 – LSP 322,609 SSP 18,373,665 AQ2010 – LSP 302,493 SSP 18,748,122 AQ2011 – LSP 280,185 SSP 19,183,868 AQ2007 - LSP 68% SSP 79% AQ2008 - LSP 65% SSP 81% AQ2009 - LSP 67% SSP 82% AQ2010 - LSP 67% SSP 83% AQ2011 – LSP 79%** SSP 88%**(Dead, Extinct excluded) AQ2011 – LSP 67% SSP 85% (Dead, Extinct included) Mod 640 – End of Year Reconciliation (Supply Points moving from SSP to LSP) source: xoserve operational forum. Substantial increase in reconciliation (March 2012) = approx. £30m (42% increase in no. Of Supply Points moving from SSP to LSP) Reconciliation value for March 2011 - £10.3m
4. When Supplier Charges Apply Current Shippers Nov 2012 Oct 2013 Nov 2013 Dec 2013 MOD81 Reports issued indicating final Shippers performance MOD81 Reports issued indicating Shippers performance Grace Period Shipper charges assigned if <85% Reallocation of Shipper charges (to Shippers >=85%) Shippers <85%:
5. When Supplier Charges Apply New Entrant Nov 2012 MOD81 Reports issued indicating Shippers performance MOD81 Reports issued indicating Shippers performance Dec 2014 Nov 2012 Nov 2013 Oct 2014 Nov 2014 Oct 2013 Gains Grace Period Reallocation of Shipper charges (to Shippers >=85%) Shipper charges assigned if <85% Shippers <85%:
6. Proposed Level of Supplier Charges Total Market GWh/Customer numbers 2.65p/kWh = AUGE SAP figure Assuming that 5% error is the "norm", given that amendments are not allowed within 5% tolerance of the AQ £ per customer = “norm” error per site X AUGE SAP
7. Potential Scenarios of Supplier Charges – SSP
8. Potential Scenarios of Supplier Charges – LSP
9. Re-Distribution of Charges – Qualifying NDM Meter Points