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Options for Mod 640 Replacement

Published byAugustus Richard Modified over 6 years ago

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Presentation on theme: "Options for Mod 640 Replacement"— Presentation transcript:

1 Options for Mod 640 Replacement

2 Mod 640 Process Implemented in June 2004
Supply Point AQ revision resulted in SSP becoming a LSP Reconciled energy and transportation commodity charges

3 Mod 640 Options Annual Process Monthly Process Quarterly Process
Scrap Mod 640 Principles

4 Monthly Process Threshold crossers determined monthly
Reconciliation from last meter read date Process similar to current LSP reconciliation Monthly invoice for threshold crossers Potential review period for large adjustments

5 Advantages Correct allocation of gas as exact amounts reconciled
LSP reconciliation process currently exists No incentive on shippers to hold back reads

6 Disadvantages New statement and increased resource
Significant xoserve system development Shipper system development May cross threshold a few times a year Another filter failures process? Big change for relatively small amount of improved gas allocation

7 Annual Process Calculation performed at 1st October
Reconcile all threshold crossers where AQ had rolled over the previous gas year Process would be similar to present Number of potential timing options Similar principles as at present

8 Advantages Process currently exists in a similar form
Leads to a reasonably accurate allocation Allows shippers to review threshold crossers Encourages shippers to ensure AQs are reviewed annually

9 Disadvantages Shippers may hold back reads
Less accurate gas allocation than other options, but similar to present Only goes back to start of previous gas year

10 Quarterly Process Determine threshold crossers each quarter
Calculate from start of quarter following previous read Ignore reconciliation periods of one quarter or less Possible time limit on reconciliation length

11 Advantages Very accurate gas allocation
Reduced workload from monthly process Similar principle to current 640 process Eliminates multiple AQ calculation issues Incentivises quarterly reads and AQ amendments

12 Disadvantages Xoserve system development Shipper system development
More frequent process than at present

13 Scrap 640 Intention of Mod 640 was to encourage shippers to increase AQs when aware Rolling AQ will mainly achieve this Large part of lag in AQ review process eliminated Most mod 640 adjustments are relatively small in value

14 Advantages Very easy to implement
Leaves the option open to ‘wait and see’

15 Disadvantages Less accurate allocation of gas
May need a process to address manifest AQ errors Monitoring and reporting still required Incentive on shippers to avoid reading incorrectly low AQ sites

16 Other Considerations Movement tolerance Timescale tolerance and limits
Timing of implementation Mod 209 decision Separate modification Costs of new process

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