1. Annual Review of Shrinkage and Leakage Model
David Simpson
September 2014

2. Annual SLM Review- Requirement
Licence Condition Part E 1F.17 – “The Licensee must review annually The Shrinkage and Leakage Model in order to assess how it can better achieve the objective set out in paragraph 1F.13 of this condition (”the SLM Review”)”
Licence Condition Part E 1F.18 – “The Licensee must consult with other DN Operators, gas shippers and other interested parties on the outcome of the SLM Review and send a copy of this consultation to the Authority by 31 December in each Formula Year.”
Licence Condition Part D 1F.13 – “The Shrinkage and Leakage Model must be designed to facilitate the accurate calculation and reporting of gas Shrinkage and gas Leakage in or from each Distribution Network operated by the Licensee.”

3. Annual SLM Review- Timetable
For 2013 the following was undertaken :-
First review of Shrinkage and Leakage Review undertaken by GDN’s in 2013
Each GDN published their own Shrinkage and Leakage Review and published for consultation at end of November 2013
Two responses received – one from British Gas, one from Scottish Power
Joint GDN Consultation Report sent to Ofgem by 31st December 2013 providing joint GDN responses to the issues raised by British Gas and Scottish Power
For 2014 proposed timetable as follows :-
Agreed that GDN’s will publish a joint SLM Review Report
Collate comments from interested parties for inclusion in 2014 SLM Review during summer 2014 – no comments received to date
GDN’s prepare draft SLM Report by end of October 2014 (SGN Lead)
Publish 2014 SLM Review by 31st October 2014 – 28 days consultation
Publish final SLM Review report by 31st December 2014 and send to Ofgem

4. Annual SLM Review- 2013 Report
2013 SLM Review contained information on each factor which influences the calculation of Shrinkage and Leakage :-
LP Mains
LP Services
MP Mains
AGI Leakage
AGI Venting
Interference Damage
Theft of Gas
Own Use Gas
Background to each factor was provided and how they are used in the SLM together with details of any proposed modifications