Mod 209 – Rolling AQ

Rationale for the proposal Current AQ process has operated in much the same form and timescales since inception of code AQ is a fundamental piece of information used throughout the industry Although AQ is a historical calculation it is used as a proxy for future consumption Consumption patterns are changing, evidence shows that demand is reducing, and the current process can create AQs that are on average 18 months old at the time they are applied Where demand is changing more radically this can increase commercial risk for Shippers and Transporters Theme Date Department

Review Group 177 E.ON raised review group 177 to assess the potential for changing from an annual AQ change to a more regular update Annual process causes ‘shocks’ on 1st October Significant manpower required over a short period Significant impacts to the UKLink system AQ errors can be difficult or slow to correct Regular updates smooth the impact across the year AQ can respond faster to demand change AQ errors can be corrected faster System security is improved Manpower resources can be consistent across the year Should allow Smart Meter benefits to be incorporated more rapidly Theme Date Department

Modification 209 Review group 177 provided assurance that others across the industry also saw benefits from changing the AQ update process A straw man was derived but didn’t resolve more detailed questions With a complex issue like this it seems sensible to have developed a better understanding of the detailed requirements before proceeding to consultation See this process as enabling the group to clarify how rolling AQ could be implemented in practice to enable full and informed responses to consultation Theme Date Department