1 To re-define the Aggregate Reconciliation Period to reflect the period to which the charge relates.

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Presentation transcript:

1 To re-define the Aggregate Reconciliation Period to reflect the period to which the charge relates

2 UNC TPD Section E (f) f) "Aggregate Reconciliation Period" is: (i) in relation to Monthly Individual Reconciliation and LDZ Reconciliation pursuant to paragraph 7.6.1(a), the calendar month; (ii) in relation to Annual Individual Reconciliation, the period of six calendar months; (iii) in relation to DM Check Individual Reconciliation, the period of twelve calendar months immediately preceding the month in which the relevant Reconciliation Invoice in respect of the Reconciliation Billing Period is to be submitted and for LDZ Reconciliation pursuant to paragraph 7.6.1(b) the Preceding Year

3 The %age share of the RbD sector in the month before an invoice is issued determines the %age share of the adjustment for each User. This share is not the same as the period of the incorrect charge.

4 Shippers Portfolios change over time –A Shipper that has gained customers faces charges for customers they never had –A Shipper that has lost customers will benefit from not having to pay the true cost New Entrants face incurring costs for when they were not operating SoLR issues –The risk of such adjustments would need to be mitigated through either the price offered or a cost protection process

5 What is used for each month –A monthly price of Gas for the period is calculated –The Transportation charges for the period are applied –The %age share of the month before the invoice is issued is used Proposed for each month –A monthly price of Gas for the period is calculated –The Transportation charges for the period are applied –The User’s average %age share of the RbD market for the month is used.