1 / 6

Capacity/Commodity Split Impact on Suppressed reconciliations

Capacity/Commodity Split Impact on Suppressed reconciliations. Distribution Workstream 24th April 2008 Linda Whitcroft. Capacity/Commodity Split & Suppressed Reconciliations. Distribution Network Pricing Consultations Distribution Networks proposed change to current regime

midori
Télécharger la présentation

Capacity/Commodity Split Impact on Suppressed reconciliations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Capacity/Commodity SplitImpact on Suppressed reconciliations Distribution Workstream 24th April 2008 Linda Whitcroft

  2. Capacity/Commodity Split & Suppressed Reconciliations • Distribution Network Pricing Consultations • Distribution Networks proposed change to current regime • Increase the capacity element of the Local Distribution Zone (LDZ) system charges • Move to 95% capacity and 5% commodity • Effective 1 October 2008 • Final decision published during December 2007 by Ofgem

  3. Capacity/Commodity Split/Suppressed Reconciliations • Suppressed Reconciliations • Introducing a capacity/commodity 95:5 split will distort the results of the filter failure mechanism if not redesigned. • Erroneous charges would be released • Risk to all Shippers • Analysis was carried out xoserve to ascertain changes required to keep the same population of filter failures following the price changes NB. Currently 89% of suppressed reconciliations are adjusted with 11% being approved Analysis included changes to TRE (NRE and ZRE) charges – as per current process and ZRE only

  4. Recommended Option • Move to a ZRE Filter • Shown to provide the best MPRN selection match to the current filter • Less subject to change due to NRE not being used • Therefore parameter values not expected to be modified on regular basis, hence fewer consultations and changes to Suppression Guidelines required • Reduces risk of non ability to amend the parameter values in line with price changes • Date specific filters – TRE used until 30/9/08 and ZRE used from 1/10/08

  5. Current Filter Values and Current Charge TRE Calculation

  6. Capacity/Commodity Split/Suppressed Reconciliations Example New Filter - £0.47 p/day, therefore FAIL

More Related