Annual Quantity (AQ) & Read processes. Lee Jackson / John Harris / Rachel Hinsley
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1 Annual Quantity (AQ) & Read processes Lee Jackson / John Harris / Rachel Hinsley
2 To improve your knowledge and understanding of; The AQ process High level introduction More detailed process information Aim s and Objective s Meter Reading processes To understand how the processes interlink
3 CDS Team Structure Dave Ackers (CDS Manager) Contact Management Sue Cullen (CDS Officer) Finance & Values Lee Jackson (CDS Officer) Data Delivery Richard Cresswell (CDS Officer) Mark Smith Theft of Gas Unregistered Network Liaison Mike Hart Contact Mgmt Mno. Creation John Harris AQ process Reads processes Rachel Hinsley Contact Mgmt Consumption Duplicates/ECO Andrea Davis D8ta Centre Trevor Howell D8ta Centre
4 AQ - Annual Quantity The AQ is a numerical value recorded on Sites and Meters The AQ represents the estimated annual consumption for the forthcoming gas year AQ s are calculated for NDM & DM sites Historical meter reads utilised Provided by the Shipper The AQ enables gas allocation & capacity forecasting by DN inc. the derivation of pricing bands
5 Must Reads Shippers are obliged to submit cyclic reads As per the meter read frequency In the event this does not occur Xoserve will procure a read Via a Meter Reading Agency (MRA) This service is provided on behalf of the DN s and is subject to User Pays Charges The quality of AQ derivation is dependant upon read provision Reads under-pin AQ/gas charges ESSENTIAL!
6 Opening Reads Following Supplier Change an Opening Read is required; Incoming Shipper to generate Within 10 Business days of registration date If not an estimate Opening Read is generated; Xoserve to determine & provide No later than 15 Business days following registration date
7 Shipper Agreed Reads (SAR s) If the Shipper disagrees with the estimated Opening Read a replacement read can be agreed This process is known as a Shipper Agreed Read Only the Incoming shipper can submit to Xoserve Xoserve will subsequently validate & load the SAR The service is subject to the User Pays contract/charges
8 The AQ process in More detail
9 AQ in detail AQ calculation process NDM & DM AQ formula & calculation examples Timeline and review process AQ impacts
10 NDM AQ Calculation BACK-STOP (date 1) 30/09/06 BACK-STOP (date 2) End read last AQ calc 01/04/11 AQ calculation date 01/04/12 Read 1 Read 2
11 NDM AQ Calculation The minimum calculation period for an NDM MPR is Two valid meter readings SIX months & ONE day apart The maximum AQ calculation period for an NDM MPR is Two valid meter readings THREE years apart The optimum AQ calculation period is Non-monthly read meters: 42 weeks Monthly read meters: 50 weeks
12 NDM AQ Calculation A meter reading dated on or before will not be used to derive a revised AQ value This date is commonly known as the Back-Stop date All Meter Reads on Sites & Meters are classed as valid (inc. estimates)
13 DM AQ Calculation BACK-STOP (date 1) 30/09/06 BACK-STOP (date 2) End read last AQ calc 30/03/11 AQ calculation date 01/04/12 Read 1 Read 2
14 DM AQ Calculation The minimum AQ calculation period for DM Meter Point s is two valid Meter Reads 365 days apart The system AQ calculation will look for read 1 on 01 st April and read 2 on 30 th March (optimum period) The AQ calculation for DM Meter Point s is not weather adjusted to Seasonal Normal Demand.
15 AQ Formula RMQ = [(R2-R1) x x CV x U x CF] /3.6 AQ = ( RMQ * 365 ) / CWAALP RMQ: Relevant Metered Quantity R1: Start Reading R2: End Reading CV: Average Calorific Value U: Meter Reading Units CF: Correction Factor CWAALP: Cumulative WAALP WAALP: Weather Adjusted Annual Load Profile
16 Example of AQ Calc RMQ = (R2-R1) x x CV x U x CF/3.6 AQ = (RMQ * 365) / CWAALP R1: Start Reading (28/Apr/2008) = R2: End Reading (24/Apr/2009) = CV: Average Calorific Value = 39.2 (Ave. CV for LDZ between 28/Apr/2008 and 24/Apr/2009) U: Meter Reading Units = 100 (Imperial) CF: Correction Factor = Cumulative WAALP: RMQ = ( ) = * = x 39.2 = x = x 100 = / 3.6 = AQ = * 365 / = 448,509 kwh
17 Example of Erroneous AQ Calc 1 RMQ = (R2-R1) x x CV x U x CF/3.6 AQ = (RMQ * 365) / CWAALP R1: Start Reading (28/Apr/2008) = R2: End Reading (24/Apr/2009) = CV: Average Calorific Value = 39.2 (Ave. CV for LDZ between 28/Apr/2008 and 24/Apr/2009) U: Meter Reading Units = 100 (Imperial) CF: Correction Factor = Cumulative WAALP = RMQ = ( ) = 779,767 * = x 39.2 = x = x 100 = / 3.6 = AQ = * 365 / = 30,546,987 kwh
18 Example of Erroneous AQ Calc 2 RMQ = (R2-R1) x x CV x U x CF/3.6 AQ = (RMQ * 365) / CWAALP R1: Start Reading (28/Apr/2008) = R2: End Reading (24/Apr/2009) = CV: Average Calorific Value = 39.2 (Ave. CV for LDZ between 28/Apr/2008 and 24/Apr/2009) U: Meter Reading Units = 10,000 (Imperial) CF: Correction Factor = Cumulative WAALP = RMQ = ( ) = * = x 39.2 = x = x 10,000 = 129,886,147 / 3.6 = 36,079,485 AQ = 36,079,485 * 365 / = 44,850,891 kwh
19 AQ timeline
20 Annual AQ Review AQ Calculation SSP Warnings LSP Warnings SSP to SSP SSP to LSP LSP to LSP LSP to SSP Manual Validations AQ Calculations sent to Shipper (T04 Files)
21 AQ impacts Registered System User Meter Reads Asset Update AQ Calculation
22 The Read processes in more detail
23 Uniform Network Code (UNC) obligations exist once a site is Registered This details the requirement to obtain valid meter readings for LSP s (Large Supply Points: >73,201) UNC Section M 3.6 states; Must Reads Obligations where the Shipper has failed to obtain a meter reading, the Gas Transporter (G.T.) will use reasonable endeavours to procure a reading on the Shippers behalf, and this activity will be performed as a User Pays Service.
24 Must Reads Obligations Xoserve operates the process on behalf of the DN s The registered Shipper will pay for the Must Read service At the time the Must Read was raised A User Pays Invoice is generated to detail these charges On a monthly basis & issued to shippers
25 Must Reads Identification Pre-Notification Runs on 1 st Business Day of the month Monthly Read LSP s Only Opportunity to submit reads and avoid charges Issued to Shippers & Networks Read Loaded? Y Must Read Avoided N Notification Report Runs on 20 th Business Day of the month Monthly and Non-Monthly Read LSP s Too late for to submit a read to avoid charges Issued to Shippers, Networks & MRA s
26 Must Reads Charging details MRA s Procure Reads Reads obtained are subjected to User Pays Charges Southern Gas Networks Northern Gas Networks Scottish Gas Networks Wales & West Gas Networks National Grid Gas Networks Tier Tier Tier * Charges detailed in Agency Charging Statement (as at April 13)
27 Must Reads Delivery MRA submit reads to Xoserve Xoserve Manually Input Reads MUR Queries Sent to CMS on 10 th Business day of the month Contains information on sites obtained by MRA where shipper action is required Includes: Invoice Produced Where a read has been obtained Any site progressing to level 3
28 Opening Reads Y Reads and Asset Updates Opening Read submitted by D+10 N Impacts Xoserve estimate Opening Read AQ Read History
29 Shipper Agreed Reads Incoming Registered System user Y Is the Xoserve Estimated Opening Read Acceptable? Reads and Asset Updates N
30 Shipper Agreed Reads Outgoing Shipper requests Agreement of a revised Opening Read Incoming Shipper requests Agreement of a revised Opening Read N Incoming Shipper only submits Agreed Read Request to Xoserve Xoserve Input Replacement Read Fax Biscuit U01 Rejections Replaced Read sent to both Outgoing and Incoming Shippers Y
31 Shipper Agreed Reads User Pays Invoice is Produced Service type User Pays Service charge U01 File (BISCUIT) 1.60 Fax 5.60 Nb. Charges as per Agency Charging Statement (April 2013)
32 Aim and Objective of Today To improve your knowledge and understanding of: AQ Meter Read procedures and how the processes interlink Any Questions?
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