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The Daily Meter Reading (DMR) regulations have undergone minimal changes since 1996, despite a significant decline in the mandatory population to just 694 sites. Current obligations are complex, outdated, and costly for Transporters and consumers. There are opportunities to simplify the regime, reduce costs, and improve efficiency, such as modifying reporting obligations and reviewing error provisions. This document outlines the need for timely action to maintain sustainable arrangements, consider competition in reading practices, and assess the cost-benefit of proposed changes.
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Daily Meter Reading – Mandatory Population Chris Warner Distribution Workgroup - June 2013
Daily Meter Reading – Mandatory Population • Current ‘bundled’ regime virtually unchanged since inception of Network Code in 1996. Known as ‘DMM’ and ‘DMV’ • Overall population has declined significantly; • Original DM ‘mandatory threshold’ >75,000 TPA (approximately 25,000 sites nationally) • Interruption reform – population reduced to 4 sites in two networks, reducing further to one (NW) network for the 2013 interruption auction. • Current NGD population 694 sites • Daily Meter Reading (Voluntary – DMV) due to be eliminated (Mod 0345) by 1st October 2014 - further reduction to 190 sites
Daily Meter Reading – Mandatory Population • Criticality of daily data availability for Transportation purposes has declined significantly – data is now of only marginal benefit to Transporters: • 4 sites subject to Interruptible contract on NGD’s networks • Limited number of ‘sensitive’ sites requiring ‘within day’ monitoring • However, a complex systems and process infrastructure is required to ensure current UNC obligations can be met by the Transporter • Legacy systems are life expired and inefficient. Timely action is necessary
Daily Meter Reading – Mandatory Population • Timely that regime should be reviewed • UNC provisions over complex and outdated • Opportunity to introduce competition into reading arrangements • Charges not cost reflective due to limitations of Meter Reading ‘price cap’ • Current charges are: Datalogger - £493.17 Meter Reading - £500.10 • Not cost effective or efficient for Transporters and customers to continue to administer in current form
Daily Meter Reading – Mandatory Population • Opportunity to pass on savings to Shippers and consumers • Suggested way forward - Simplification of regime • Not proposed to ‘unbundle’ DMM reading arrangements at this time • Areas for consideration: • Modify existing obligations to provide readings to Shippers by 11:00 on D+1 • Review performance liability framework
Daily Meter Reading – Mandatory Population • Review Daily Read Error provisions • Revisit other (check reads, resynchronisation, etc) • Potential option for Shippers to make available data from reading equipment to Transporter (subject to certain safeguards and assurances)
Daily Meter Reading – Mandatory Population • Objective of simplification is to maintain a sustainable, ‘fit for purpose’ arrangements for the limited population of DMM sites • Addresses costs constraints • Opportunity to tailor services • Consistent with Project Nexus
Daily Meter Reading – Mandatory Population • Need to understand cost/benefit of simplification on Transporters and Shippers • Alternatives could be to: • substantially increase charges through raising ‘cap’ • Seek disapplication of the Price Control • Move to AMR based liability free regime • Seek to ‘unbundle’ DMM reading arrangements in its entirety
