Rolling AQ Review Group 177

Benefits Increased accuracy in allocation Reduction in filter failures Reduces risk around RbD Smoothing of workload through the year Ability to react faster to consumer changes Minimising step changes (1st October) helps reduce potential balancing costs Reduces the differential between forecasts for balancing purposes and forecasts for total revenue Theme Date Department

An example impact Theme Date Department

What level of improvement would we see? Assume current level of AQ with a scaling factor of 0.96% is overstating real AQ Scaling factors away from 1 lead to a misallocation of energy between market sectors and increase RbD risk 1% reduction in AQ towards ‘actual consumption’ moves scaling factor towards 1 and leads to a 0.8% reduction in misallocation of energy This would lead to improved initial commodity reduced reconciliation reduced RbD risk for Shippers faster Transportation certainty for Transporters Theme Date Department