THE TREATMENT OF ANNUAL QUANTITIES SYSTEM OFFTAKE QUANTITIES
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THE TREATMENT OF ANNUAL QUANTITIES, SYSTEM OFFTAKE QUANTITIES AND BOTTOM STOP SYSTEM OFFTAKE QUANTITIES FOR VACANT OR MOTHBALLED SITES OR SITES THAT HAVE DECREASED CONSUMPTION BY MORE THAN 20% OR 146, 400 k. Wh STEFAN LEEDHAM 26 February 2009 ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy. All rights reserved.
ISSUES • UNC requirement for accurate AQs • TPD G 1. 6. 6: “a reasonable assumption as to the quantity offtaken” • TPD G 1. 6. 13 (d): “the Transporter will consider the details provided by the Registered User … and where it is satisfied that the Annual Quantity or such variable. . fails to satisfy the requirement in paragraph 1. 6. 6 and that estimate of the Annual Quantity provided by the Registered User satisfies the requirement in paragraph 1. 6. 6, then the Transporter shall substitute the Annual Quantity with that estimate of the Annual Quantity…” • Differing interpretations for use of BTU Form under G 1. 6. 13 • 96. 5% of transportation charges derived from SOQ or BSSOQ • The economic climate is changing: • 2004/05 9% of commercial and industrial properties were vacant • Industry is reducing production or mothballing premises ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy plc. All rights reserved. PAGE: 3
OBJECTIVES 1. 2. 3. 4. 5. 6. 7. Clarify section G 1. 6. 13 Introduce mechanism for accurate BSSOQs Avoid incentive to profile an AQ during the year Ensure customer charges reflect costs incurred Avoid potential increases in unallocated energy costs Reduce likelihood of stranded assets from permanent closure Pragmatic solution to changing economic climate ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy plc. All rights reserved. PAGE: 4
THE PROPOSAL 1. Clarify section G 1. 6. 13 • Ability to re-set AQ and SOQ for LSP NDM sites to 1 or any multiple thereof 2. Introduce ability for Shippers to reduce the BSSOQ outside of existing window – provided minimum 3. Shippers confirm validity of proposed AQ through reasonable endeavours and written confirmation to Shippers 4. Introduce charges so Shippers are indifferent to profiling AQ during the year • Shippers charged back to date when AQ, SOQ, BSSOQ re-set if increase within 12 months ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy plc. All rights reserved. PAGE: 5
ISSUES 1. Mod 640 rules • • DM requirements • • • What happens when a DM site drops down to 1? Should they be allowed to drop to 73, 201 k. Wh and be DM Voluntary? Interruptible sites • • Should a LSP site dropping to an AQ of 1 & increasing within 12 months be exposed to 640 rules as well? Are there any issues with interruptible sites? Any other issues? ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy plc. All rights reserved. PAGE: 6
WAY FORWARD 1. 2. 3. 4. 5. 6. 7. 8. Distribution Workstream - 26 February Further development - 27 February – 11 March Mod Panel - 19 March DMR Issued for consultation - 20 March Consultation end - 14 April FMR produced - 15 -16 April Mod Panel - 16 or 21 April Ofgem decision - May ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy plc. All rights reserved. PAGE: 7
THANK YOU ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy. All rights reserved.
