PN UNC Workgroup (Settlement topic)

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PN UNC Workgroup (Settlement topic)

• Allocations Overview
• 4th December 2012

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Background

• Allocation Scaling Adjustment discussed and
  principle agreed in Settlement BRD
• Reconciliation Scaling Adjustment agreed in
  Reconciliation BRD
• Market Share changed from throughput to AQ in PN
  UNC
• During internal analysis questions have been
  raised with the new arrangements
• None of which are un resolvable but
• clarification needed for legal text and
• assurance that we all have the same understanding
  of the arrangements

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Allocation processes Timelines
Gas Nominations
Gas Allocations
INPUTS
Total LDZ Energy, Actual DM Reads
Estimated LDZ Energy, DM Estimates (from Shippers)
final
final
ALPs,DAFs,AQs
final
final
OUTPUTS
Daily Energy Nominations
Daily Energy Allocations
Informs gas purchasing
Total System Outputs
Energy Balancing Indebtedness
Gas Nominations Day Ahead Forecasting
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Future Allocation Project Nexus
5. Allocation Scaling Adjustment remaining
energy is smeared at LDZ portfolio level
3. Larger DM sector Process 1 2 Actual
Measurements
1. Total Energy as measured into the LDZ
4. Improved standalone estimation for NDM sector
(Process 3 4)

• Allocation as described in Settlement BRD
• Unidentified Gas shared at portfolio level in
  each LDZ

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Current Process
Non-Daily Metered

• AUGE allocates unidentified gas from SSP market
  to LSP market potentially DMs
• of unidentified is defined in advance based on
  historical information

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Allocation Scaling Adjustment
Total Energy allocated within an LDZ
Unidentified gas

• Unidentified Gas shared at Shipper portfolio
  level in each LDZ
• Applied to all Products (daily metered and non
  daily metered)
• Reconciliation Scaling Adjustment adjusts the
  share following
• a reconciliation of a meter point

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Issues

• Should the share of unidentified gas be shared
  using the same data?
• Allocation Scaling Adjustment share is based on
  consumption at GFD5
• Reconciliation Scaling Adjustment share is based
  on AQ
• What is the future role of the AUGE in the new
  arrangements?
• Possible Options?
• No AUGE
• AUGE reviews unidentified gas makes
  recommendations for process change, no impact to
  sharing
• AUGE sets rules for share of both Allocation
  Reconciliation Scaling Adjustment