1. Treatment of Daily Read sites
ICoSS Presentation

2. I&C Shippers and Suppliers (ICoSS)
Members
Corona Energy
ENI UK Ltd
Gazprom Marketing and Trading – Retail
GDF Suez Energy UK
First Utility (associate)
Shell Gas Direct
Statoil (UK)
Total Gas and Power Ltd

3. Demand for Daily read
Rollout of next generation of metering will greatly increase level and granularity of consumption information available to customers.
Coupled with increased requirements for energy management (CRC, Corporate Social Responsibility, etc), likely to see massive increase in demand for being settled on a daily basis.
High-level principles identified two possible ways of handling Daily Read (DR)s, which is taken here to mean:
Allocation based on daily reads, daily balancing , analogous to DM regime
Estimated Allocation, periodic balancing on a weekly, monthly basis using daily read data.
DR customers are likely to cover a broad spectrum.

4. Customer Requirements: large plant
Important Network load
Transporter need realtime visibility of offtake
Inidividual Meter Errors/Estimation can have impact on other customers.
Material Impact on Energy Allocation
High level of interaction in market:
Demands flexible/innovative contracts
Dedicated energy managers.
Environmental Obligations stimulate need for data granularity.

5. Customer Requirements: SME
Negligible Network load
Transporters do not need realtime visibility.
Individual Meter Errors/Estimation will have tiny impact on other customers.
No Material Impact on Energy Allocation
Low level of interaction in market:
Simple contracts
Uses brokers

6. Implications for Nexus
At its lowest level daily read can mean periodic reconciliation using meter readings procured and validated by the Shipper.
Other sites will require allocation and balancing to occur on a daily basis.
Shippers may have portfolio customers who will contract for common service. In addition Shippers may want to offer varying service levels.
Implies a flexible regime with Shipper being the primary driver for determining site treatment, underpinned by obligations to safeguard settlement and network integrity.

7. DR v current regime (DME/DM) 1 of 2
Area
DME/DM DR
Eligibility / Obligation for Daily Balancing
>2,196 MWh (DMM firm)
>732 MWh (DME – phase 3)
>73.2 MWh (DMV)
+ Interruptible, NTS,etc
Daily read submission mandatory when needed for Network/settlement integrity (current thresholds?)
All others - Shipper election for Daily or periodic read submission. No restrictions on choice if sites fulfils equipment criteria)

8. DR v current regime (DME/DM) 2 of 3
Area
DME/DM DR
Read Provision
Daily at set time (10am)
Daily read submission – End of Gas Day?
Periodic read submission, end of week/month (as appropriate).
Read Validation
Undertaken by Meter Read Provider in 1st instance, Transporter Agent secondary validation.
Undertaken by Shippers in 1st instance. Transporters Agent as safety net.
Read Estimation
Undertaken by Transporters Agent

9. DR v current regime (DME/DM) 3 of 3
Area
DME/DM DR
Read Replacement
Actual Reads can be submitted by D+5 to replace estimates
Reads (estimated or actuals) can be replaced up to D+5
Resynch/reconciliation
Transporter notified day of resynch, reads validated by Shipper (DME)
Still needed to notify for all/any daily allocation sites?
For periodic read submission sites Shipper does not need Transporters
Check Readings/ Meter Inspections
Undertaken by Shippers/Transporters
Still needed for all/any daily allocation sites?
No need for periodic read submission sites

10. Key Issues Where to set obligations levels?
Transporter Requirements (network operation)
Shipper Requirements (integrity of settlement process)
Capacity to allow increased numbers of DR sites.
Level of take-up
Interaction with DM Unbundling
Transfer to Shipper-led regime (timescales)

11. Contact Us
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