1 MOD Proposal 0224 Facilitating the use of AMR in the Daily Metered Elective Regime UK Link Implementation Summary & Overview of Solution Options 9 th April 2009

2 Agenda  Aims  Background of the DM Elective Change  Benefits  Overview of the Change  Supply Point Administration (SPA) Overview – Design & Build  SPA File Impacts  DME Dummy Datalogger Process  DME Read Submission Overview – Design & Build  DME Read Submission  DM Activity Process Flows (Base & Base + Additional Level)  Reporting  Invoicing  Transfer Reads  Impacts to Non-DM Elective Shippers  Next Steps  Questions

3 Aims  To provide background to the DM Elective Change.  To describe business and system changes required as a result of DM Elective.  To describe impacts to existing processes.

4 Background of the DM Elective Change  Modification Proposal 0224 seeks to allow users to elect for a daily settlement regime, rather than use the derived Non Daily Metered (NDM) demand profile.  Current NDM profile is based on statistically derived End User Category profiled usage.  Implementation of a DM Elective solution will allow Shippers to submit Daily Metered (DM) reads for eligible sites within their portfolio.  Modification proposes to use the established DM systems and process achieving a tactical solution ahead of Project Nexus.  Rough Order of Magnitude (ROM) assessment undertaken to provide High Level Estimate for implementation of solution.  Following ROM, Networks requested paid analysis phase to be completed to obtain estimated costs for delivery of a DM Elective solution.

5 Overview of the Change  Objective of the change is to implement a tactical solution prior to changes to UK Link that may be delivered by Project Nexus.  Changes required to UK Link to allow the introduction of a DM Elective Regime for eligible meterpoints, two solution options analysed: - ‘Base’ Level Service - ‘Base + Additional’ Level Service  Allow the completion of all activities associated with a DM site to be completed by the Shippers e.g. Online Consumption Adjustments.  Replacement of CAPs offline system to facilitate the increased volumes of offline Consumption Adjustments, offline Reconciliation and DM Prime Reconciliation.  Modification Proposal 0224 is a Code User Pays proposal.

6 Overview of the Change Eligibility for DM Elective / MOD 0224 Business Rules  MPAQ > 732,000 KWh  DM Elective Market does not include DM Mandatory sites where the SPAQ > 58.6 GWh and MPAQ > 2,196,000 KWh  DM Elective market shall not include Interruptible supply points.  DM Elective market shall not include Unique Sites.  Eligible Prime and Sub meter points may elect to become DM Elective, it is not required that all meter points within such configuration become DM (Elective or Mandatory/Voluntary).  The DM Elective service will only include Supply Points directly connected to Large Transporters’ Distribution Networks.

7 Overview of the Change ‘ Base + Additional’ Level Service – Recommended Solution Read Submission:  Utilise existing SPA processes.  Allow submission of DM Elective reads from Shippers.  Perform validation on submitted read data prior to and during processing.  Produce response files to Users DM read submission for DM Elective sites.  Provide data to Gemini systems to ensure that gas nominations and allocations follow the existing DM regime.  Utilise existing invoicing processes to settle DM Elective sites. Completion of DM Activities:  Completion of the required suite of DM activities in association with DM Elective sites will be automated and completed via file submission; a detailed breakdown of these activities is documented in the UK Link Summary paper.  Offline Consumption Adjustments must be completed manually.

8 Overview of the Change ‘Base’ Level Service – Alternative Solution Read Submission:  As per the ‘Base + Additional’ Level Service. Completion of DM Activities:  Completion of the required suite of DM activities for DM Elective sites will be completed manually via existing UK Link screens by xoserve following receipt of information from the Shippers.

9 Overview of the Change CAPs Offline System Replacement  A replacement of the offline CAPs system is required for the ‘Base’ or ‘Base + Additional’ Level Service.  Replacement onto a more robust and automated platform.  Replacement will have capability to process and cope with the additional volumes of offline Consumption Adjustments, offline DM Reconciliation and DM Prime Reconciliation arising as a result of the DM Elective regime

10 Overview of the Change Phased Roll Out The DM Elective Service is proposed to be rolled out in 3 phases:  Phase 1: Commence from date of implementation for a 12 month duration, will include eligible MPRNs where SPAQ > 5,860,000 kWh.  Phase 2: Commence from date of implementation +12 months* for a 6 month duration, will include eligible MPRNs where the SPAQ > 2,196,000 kWh.  Phase 3: Commence from date of implementation +18 months*, will include eligible MPRNs where SPAQ > 732,000 kWh will be subject to a prescribed limit initially set at 25,000. *Or, if later, when a satisfactory checkpoint assessment has been completed

11 Supply Point Administration (SPA) Overview

12 SPA Impacts Impacted files with the introduction of DM Elective: Nomination Process:  NOM File – S69 record, new GNT code ‘DME’  NMR File - S69/S75 record, new GNT code ‘DME’ - S72 Record, new rejection codes.  NRF File – S69/S75 record, new GNT code ‘DME’ Confirmation Process:  CFR File – S75/S77 record, new GNT code ‘DME’  TRF File – S75 record, new GNT code ‘DME’

13 DME Dummy Datalogger Process  A new DME specify dummy datalogger AIS number will be created that will be associated to all DM Elective sites.  The nomination and confirmation process will circumvent the validations related to the existence of a datalogger.  System will auto populate the dummy datalogger data on D day (Confirmation Effective Date) for the sites that are converting to DME.  The dummy datalogger association for a meter point will be superseded once the meter point ceases to be a DME site. DM Service Provider Impacts: DME – DM Transfer  Nominations and confirmations as DM will flow through without system check as the system validation that datalogger details are required on the system is circumvented due to DME dummy datalogger details being present on UK Link.

14 DME Read Submission Overview

15 DME Read Submission  New files introduced to support the DM Elective regime.  All files submitted are subject to standard ERR/FRJ file validations.  All files will be sent/issued via the IX gateway.  A deadline time for the receipt of the reading file from the Shipper has been set as [10am].  There will be one batch run a day to process the DM Elective reads provided by the Shippers.  There will be multiple batch runs per day of the DMI file to process DM activities (‘Additional’ Level Service only).

16 DM Read Submission DME File  Used to submit Actual daily reads for DM Elective sites.  A cap of 10 files per Shipper can be submitted per processing run.  All fields in file are Mandatory except those relating to Start/End Corrector Read and Corrected Consumption, these are conditional and must be populated if a Corrector is present on site.  Shipper must provide Start & End Readings (Start Read must be previous days End Read)  UNCORRD_CNSMPTN to be populated with End_Mtr_Read – Start_Meter_Read.  CORRECTED_CNSMPTN to be populated with End_Corrd_Read -Start_Corrd_Read  Where an actual read is not provided in the DME file or the submitted Actual fails validation a system generated estimate will be used (existing DM read estimation process).  Read provision failure charges will be applicable where the Shipper has failed to provide a percentage of actual reads for their portfolio for a calendar month

17 DM Read Submission Incentive Charge Calculation The incentive charge performance targets are:  Phase 1 of rollout = 90%  Phase 2 of rollout = 95%  Phase 3 of rollout = 97.5% Failure charges are to be calculated on a monthly basis using the formula: (Total Actual Reads Required - Total Actuals Provided) * Failure Charge Rate Example Shipper DME Portfolio Total = 100 meter points Read Provision Rate = [97.5%] Phase 3 Max Actual Reads = 3100 (Shipper Portfolio Total * Number of Days in Month) Total Actuals Required = 3022 (Max Actual Reads * [0.975]) – Shipper Transfer Reads Generated (0) Total Actuals Provided (on D) = 3000 Failure Charge Rate = £[2] Failure Charge = (3022 – 3000) * [2]= £44

18 DME Read Submission MDE File  Used to report DM Elective read information to Shippers.  Clone of existing MDR file used to report current DM reads to Shippers.  Three runs of MDE file per day: 1.MDE A&E – Accepted reads submitted by Shipper and estimates where Actual rejected. 2.MDE Estimates - No reading provided by Shipper. 3.MDE B&P – Details relating to the Better and Prorated reads generated by system.

19 DME Read Submission RPA File  Issued to Shippers after DME file processing.  Provides submitted read records that have failed DME read validation.  Does not follow UK Link standards for rejection reporting.  Approx 60 rejection messages.  Examples of potential RPA messages received:  Incorrect IMPERIAL/METRIC indictor provided.  Meter point is not DM during the read period.  READING ALREADY RECEIVED.  Corrected reading not provided for a corrector attached site

20 DM Activity Process Flows There is a suite of DM activities that are required to be completed by the Shipper in order to manage the DM Elective regime, two levels of service have been analysed:  ‘Base’ Level Service – manual process completed by xoserve.  ‘Additional’ Level Service – automated solution via file submission with minimal manual processes.

21 DM Activity Process Flows Online Consumption Adjustment Requests Process to amend consumption held on UK Link up to the D+5 closeout window. ‘Base’ Level Service  Shipper contacts xoserve to input into UK Link screens, data inputs required:  MPO Reference  Meter Read Start Date (Gas Flow Day for amendment)  Adjusted Volume  Adjustment Reason Code  Remarks (if required) ‘Additional’ Level Service  Above details provided in DMI file, [O18] record.  DMO response file generated following submission, [O23] record confirms details successfully loaded.  Records rejected will have an [O23] record and an associated S72 rejection record.

22 DM Activity Process Flows Offline Consumption Adjustment Requests Process to amend consumption outside of the D+5 closeout window.  Not able to be automated in either ‘Base’ or ‘Additional’ Service level, required to be completed offline.  Follow the existing DM process.  Shipper to submit a completed ADJ1 form to xoserve for processing.

23 DM Activity Process Flows Flag Datalogger Resynchronisation Process to flag that a datalogger has had a resynchronisation.  Flag must be set prior to the following days read being loaded. ‘Base’ Level Service  Shipper contacts xoserve to input into UK Link screens, data inputs required:  MPO Reference  Resynch Date (date resynch completed)  Reason (reason for resynchronisation) Additional’ Level Service  Above details provided in DMI file, [O14] record.  DMO response file generated following submission, [O19] record confirms details successfully loaded.  Records rejected will have an [O19] record and an associated S72 rejection record.

24 DM Activity Process Flows Load Resynchronisation Reads Process to load resynchronisation readings. ‘Base’ Level Service  Shipper contacts xoserve to input into UK Link screens, data inputs required: - MPO Reference - Datalogged Meter Reading Before - Resynch Date - Datalogged Corrected Reading Before - Meter Reading Before - Datalogged Meter Reading After - Uncorrected Reading Before - Uncorrected Reading After - Corrected Reading Before - Corrected Reading After Additional’ Level Service  Above details provided in DMI file, [O15] record.  DMO response file generated following submission, [O20] record confirms details successfully loaded.  Records rejected will have an [O20] record and an associated S72 rejection record.

25 DM Activity Process Flows Flag Check Read Process to flag that a site has had a check read and no resynch is required. ‘Base’ Level Service  Shipper contacts xoserve to input into UK Link screens, data inputs required:  MPO Reference  Check Read Date Additional’ Level Service  Above details provided in DMI file, [O16] record.  DMO response file generated following submission, [O21] record confirms details successfully loaded.  Records rejected will have an [O21] record and an associated S72 rejection record.

26 DM Activity Process Flows Flag / Un-flag Datalogger Faulty Process to set a flag within UK Link to indicate that a site is faulty and therefore any Actual reads submitted should be rejected until the site is un-flagged.  Site must be flagged on the day a fault is identified.  Site must be un-flagged on the day the site is no longer faulty, if not estimate will load that may impact read provision performance. ‘Base’ Level Service  Shipper contacts xoserve to input into UK Link screens, data inputs required:  MPO Reference  Effective Date  Fault Status – L = Live, F = Faulty, S = Suspected Faulty ‘ Additional’ Level Service  Above details provided in DMI file, [O17] record.  DMO response file generated following submission, [O21] record confirms details successfully loaded.  Records rejected will have an [O21] record and an associated S72 rejection record.

27 Reporting DME Uptake Report A monthly DME uptake report will be published on detailing the current DME uptake statistics, the report detail is as follows: NumberFieldMeaning 1Total DME UptakeSum of the count of meter points in the following four rows. 2Total Live DMEThe total number of Live DME MPs. 3Confirmations at CO StatusThe total number of DME MPs as a part of CO confirmations. 4Nomination Requests at RQ StatusThe total number of distinct MPs for which there are RQ confirmations. 5Outstanding Nomination RequestsThe total number of distinct DME MPs for which there are outstanding offers. 6Available LimitCeiling limit – (sum of fields 1, 2, 3 & 4

28 Reporting Annual Check Visit Report  Provided on an ad-hoc basis following request from Shipper.  Available as a Non Code User Pays Service.  Delivered via .  Provides previous annual site visit details for all DME sites within Shippers portfolio:  MPO Reference  Previous Site Visit Date  Reason (Site visit with resync = DRC, site visit without resynch = AC)

29 Reporting Meter Inspection Report  Meter Inspection notification will continue to be provided as per existing functionality on MIN file.  If required Shippers can request on an ad-hoc basis a report providing the previous meter inspection date for all DME sites within their portfolio:  MPO Reference  Previous Meter Inspection Date  Delivered via .

30 Invoicing  Services to be charged for as a UNC User Pays Code service set out in the Agency Charging Statement (ACS).  A series of new ad-hoc charge types to be created.  A minimum one months notification will be provided of new charge types and will include: charge type, charge type description, invoice type and VAT codes.  Method for provision of supporting information to be determined and may be issued via on the same day as the invoice.

31 Transfer Reads Principles  Incoming Shipper or Read Provider responsible for obtaining read at Start of GFD – i.e. 01/01/09  Where outgoing Shipper or Read Provider provides reading this will be rejected, regardless of whether incoming Shipper or Read Provider provides reading  If Actual Reading not provided by incoming Shipper or Read Provider, reading calculated by:  D-7  AQ/365  NDM Estimate Read Process  File to notify Shippers of ‘Transfer’ Readings will be relevant to read service

32 Transfer Reads Further Principles  For DMM/V/E – NDM Transfers the DM estimate will be loaded to create the Transfer Read.  If outgoing Shipper disagrees with ‘Transfer’ Reading (whether Actual or Estimate), a Consumption Adjustment is required.  Incoming Shipper will be required to raise SAR/Consumption Adjustment.  As per Shipper Agreed Reads process where a CA is received around transfer the CA is assumed to be agreed with Shipper A.

33 Transfer Reads

34 Transfer Reads Discussion Points – General  Assumes NDM – DM Readings follow on. Discussion Points – Read Not Provided  No DM History for D-7, or AQ/365.  Previous NDM Reading may be aged.

35 Transfer Reads

36 Transfer Reads Discussion Points – Transfer Reads Taken (<D):  DM / NDM readings may not be in sequence.  Inferred negative consumption for GFD 31/12.  Opening reading may not get loaded until D+10.  Likely to require Manual Intervention. Discussion Points – Transfer Reads Taken (D):  DM/NDM readings may not be in sequence.  Opening reading may not get loaded until D+10.  Likely to require manual intervention. Discussion Points – Transfer Reads Taken(>D):  DM / NDM readings may not be in sequence.  Inferred large consumption for GFD 31/12.  Ratchet Functionality?  Opening reading may not get loaded until D+10.  Likely to require manual intervention

37 Next Steps  xoserve seeking approval/confirmation from UK Link Committee that the file formats are acceptable. User Pays report prepared/discussed at Distribution Workstream – 23 rd April  Distribution Workstream due to report to Modification Panel – 21 st May  Development costs, User Pays service lines and indicative charges required for report.  Implementation will be circa 12 months from approval of the UNC Modification  Potential implementation outside of release schedule

38 Impacts to Non- DME Shippers The change is intended to have minimal impacts on Shippers not wishing to participate in the DM Elective regime. Areas identified that will be impacted are:  SPA  NMR File – Enquiry on a DME site will return S75 Record with GNT = ‘DME’.  Transfer Reads  Incoming Shipper required to submit replacement OPNT Transfer Read by D+10.

39 Questions?