1. Trade Effluent Workshop
20 December 2016

2. Agenda Item Description Who Time 1. Tea and coffee All 09:30-10:00 2.
Welcome, Introduction and Housekeeping
Tom Notman
10:00-10:10 3.
Open Water Programme Update
10:10-10:30 4.
Purpose of today
10:30-10:40 5.
Trade Effluent Toolkit
David Nicol
10:40-11:45 6.
Break
11:45-12:00 7.
Participant Open Forum
Natasha Sinnett
12:00-12:45 8.
Lunch
12:45-1:30 9.
Specific Trade Effluent Questions
13:30-15:00
10.
Wrap up and close
Remaining Questions
Next steps
Close (15:30)
15:15-15:30

3. Welcome, Introduction and Housekeeping
Tom Notman

4. Introduction Welcome to the Trade Effluent Workshop Housekeeping
Fire exits/drills
Mobile phones
Facilities
Breaks

5. Open Water programme update and purpose of today
Tom Notman

6. Integrated Market Opening Plan – October 2016
Repeat activity
All trading parties
Trial trading parties
MOSL and all TPs
Defra
MOSL
Open Water
Ofwat
KEY
HoP = Houses of Parliament
TP = trading party
Critical
milestone
Milestone
System design, build and test
Governance
Assurance letter – final MO
info. for HMT
TP data for phase 1 build
System design – Phase 1, TP functionality
System design – Phase 2, MOSL functionality
Security penetration testing
Run full service desk operation
System integration test, phase 2 build
Live service desk operation
Assurance letter – interim
Assurance letter – planning
MCR published
System requirements sign-off
Codes baselined
SoS decision
Go Live
Checkpoint on progress to baseline
Shadow market operations
Review │ Refine │ Implement market opening plan
Release planning
Website finalised
Collaboration
tool training
Final data load
Remedial data load and assurance
Market readiness
Sector test system cycle 1
Sector test system cycle 2
Pre go-live comms
If fail
UAT reports on MOSL website
TP training needs analysis
Formal market entry
assurance testing
MCR Planning
Readiness self assessment
Readiness assessment
Market report to Ofwat / Defra
Market entry reassurance testing
TP market entry assurance certification
confirmed & complete
issued to all TPs
Retail Exits allowed
Publication of charging guidance
Charging guidance to Ofwat in HoP
Shadow market
workshop
comms event
New entrant comms event
Update system 1
Update system 2
Update system 3
MOSL system sign-off
UAT 2.0
Service acceptance testing
UAT 1
Commencement work for Retail complete
Shadow market opens
System build – Phase 2, MOSL functionality
System build – Phase 1, TP functionality
System integration test, phase 1 build
Run initial service desk operation
Training delivery – Phase 1
Data load 3
Data load 2
Test environments
Data load 1
Market scenario testing
Data test environment
Independent review
Market entry business solution assessment
Design phase 1
Design phase 2
Build phase 1
Build phase 2
User acceptance testing 1
User acceptance testing 2
Market entrant readiness complete
Design and build
Test
Shadow
Go live
Oct 15
Nov 15
Dec 15
Jan 16
Feb 16
Mar 16
Apr 16
May 16
Jun 16
Jul 16
Aug 16
Sep 16
Oct 16
Nov 16
Dec 16
Jan 17
Feb 17
Mar 17
Apr 17

7. 26 Retailers 23 Wholesalers The largest
The shadow market in numbers
Open Water Partners creating an overall benefit of 3
£200m
to the economy. The UK open water market will be
26 Retailers Wholesalers
and
The largest
competitive water market in the world
2.64m
C1.2m
2.4bn
SPIDs
(Supply Point IDs)
Non-household customers
Financial settlements
annually
10.2m
Year one base budget

8. Engagement with Trade Effluent community
Open Water presentation to TEPN – March 2015
Open Water TE workshop – August 2015
MOSL seminar – May 2016
MOSL follow up workshop – June 2016
MOSL follow up workshop – July 2016
MOSL workshop – December 2016

9. Output from previous meetings
Open Water presentation to TEPN – March 2015
Banded charges added to TE charging options
Open Water TE workshop – August 2015
Private Water meter networks
Changes to DA / FA model
MOSL workshops – summer 2016
WRC calculated discharges - agreed
WRC 045 – sampling notifications - withdrawn
WRC 055 – domestic percentage – not formally submitted
WRC 056 – remove component list from forms – pending
WRC 057 – update to H01 form – agreed & implemented
WRC settlement updates - agreed

10. What we will not cover today
CMOS issues put forward by participants
TCORRS
Cannot see rejected transactions
Settings to avoid loading CMOS certificates each day
Issues with DPIDs containing ‘/’ and ‘-’ which is due to be fixed in January
Missed meter readings
Settlement run impact due to data transactions not being accepted and ‘correct results’ not due till February
Missed SPIDs
This is a TE workshop

11. Trade Effluent toolkit
David Nicol

12. Trade Effluent Toolkit
Banded and Fixed Charges
Could be used:
As standalone charges for low risk consents; or
Alongside operational volumetric charges to cover;
Regular sampling costs and/or
Additional unmeasured inflows
Minimum Charges
Must be used alongside operational charges
Availability Charges
May be used alongside operational charges
‘Unused consents’ reserving capacity at sewerage works

13. Trade Effluent Toolkit
Methods to:
Calculate TE Volumes
Adjust Sewerage Volumes
Extensive Volume Calculation Toolkit
Meters
Meter-DPID Association
Calculated Discharges
Volumetric Adjustments
Allowances (FA, PA, DA)
Adjustments to Sewerage Volumes
Meter Networks
WRC Changes
To be implemented post Go-Live

14. 1. Meter Meters come in different flavours Potable Water
Non-Potable Water
Private Water
Cross Border
Non-Market (domestic)
Sewerage
Private Trade Effluent
Measure water
Measure sewage/effluent

15. 1. Meter All of these meter types: Can be used in TE calculations
Metered sewerage calculations automatically take account of these meters
If changes to default sewerage calculations are wanted, then some additional set up needed
For the TE calculation to succeed – always need to set up the meter with the appropriate DPIDs

16. In general the associations can be many to many
Sewerage Wholesaler creates association between meters and DPIDs
The meters on the left can be any type of market meter
MDVOL – a percentage of meter volume associated with the DPID
Designed as a proportioning mechanism
Use allowances for production/evaporation losses
Frequently 100%, but can be less if only some of the volume goes to the discharge point; or volume goes to multiple discharge points
0% can be used; and can be useful
2. Meter DPID Association PW
DPID 2 W
In general the associations can be many to many
DPID 1

17. 2. Meter DPID Association
Multiple Meter-DPID Associations
Contribute additively to the volume calculation
Volume for DPID 2 is sum of volumes associated with W & PW PW
DPID 2 W
DPID 1

18. 3. Calculated Discharges
For use where volumes cannot be measured directly
Could have a calculation:
mm of rain & area of contaminated site -> discharge volume
Count of tankers arriving on a site * volume / tanker
Wholesaler submit an initial YVE; retailers submit volume
WRC 055 extends this
Wholesaler submits YVE
New option:
Retailer never submits volumes
Existing option remains for Retailer submitted volumes

19. 4. Volumetric adjustments
For changes to metered volumes due to bursts / fire allowances / broken meters etc.
No automatic linkage between water, sewerage and Trade Effluent
Wholesaler must independently apply volumes to metered water, metered sewerage and DPIDs

20. 5. Allowances Allowances are associated with a DPID
Three types available:
PA - Percentage Allowance mandatory
FA - Fixed Allowance mandatory
DA - Domestic Allowance optional
How these are used …
TE Volume = (100% - PA%) × (Metered Volume – [DA] – FA) +
CalculatedDischarges + VolumetricAdjustments

21. 6. Adjustments to sewerage volumes
Three Methods associated with each DPID:
One of them must be specified
NONE – no adjustment directly made to the sewerage calculation
Sewerage volumes can still be adjusted by changing RTS
SUBTRACT – sewerage volume reduced by the Trade Effluent
Designed to be used with Private TE meters
Not to be used with other meter types
WRC 055 – will also subtract Calculated Discharge Volumes
WRC 059 will raise an error if used with non TE meters
DA – sewerage volumes are replaced by Domestic Allowance

22. 7. Meter Networks Three Methods associated with each DPID:
CMOS supports meter networks
Wholesaler’s potable / non-potable water meters can be main meter
Sub-meters can be wholesaler’s potable / non-potable meter; private water meter, non-market (domestic) meter
Private water can be on the same or different premises
Private water meters on same premises facilitate TE calculation

23. 7. Meter Networks - Example
Customer A
Supply W PW
SVAM = NONE
RTS (PW) = 0
Trade Effluent
Sewerage SPID A
DPID
Private Water Meter on same premises. Used to adjust sewerage volumes for the sewerage SPID
DPID associated with the Private Water Meter
Set parameters for DPID so no sewerage is associated with the Private Water Meter

24. 8a. WRCO55 Extends Calculated Discharge Volumes need not be supplied
Taken account of in ‘SUBTRACT’
Will not be available until after Go-Live
Workarounds
Put in six-monthly calculated discharge. Ask retailer not to submit volumes. But no validation to prevent them
SUBTRACT is more difficult
Use ‘NONE’ in the interim
Either:
Adjust RTS of meters; or
Could ‘cheat’ and use a volumetric adjustment

25. 8b. WRCO59
What it does
Puts in validation re non-TE meters and SUBTRACT
Deals with sewerage settlement issues during periods of (temporary) discontinuation of a DPID
Prevents re-use of a DPID
Issues
DPID with NULL tariff
Sewerage calculations still affected by ‘DA’ or ‘SUBTRACT’ on DPID
Workarounds
Remove meter-DPID associations

26. Break

27. Participant open forum
Natasha Sinnett

28. Participants have put forward their topics
Experiences with using the forms and processes
Particularly, are you happy with forms G01, G02?
Experiences with the application process
Retailer knowledge on TE
Provision of sample results

29. Lunch

30. Specific trade effluent questions
David Nicol

31. 1. Negative Volumes
If Domestic Allowance > metered TE volume, then TE volume will be negative. Can it be set to 0 instead?
Negative volumes can arise from various causes:
Poor meter reading history;
Meter networks; DA
Over successive months the negatives and positives balance out. Setting values to 0 will overcharge the retailer.

32. 2. Setting RTS for Sewage
Can RTS for sewerage be adjusted via the DPID?
No, is the short answer to this question
RTS is set at the meter level;
Good design is for a single ‘best’ way to adjust volumes
If a meter were associated with multiple DPIDs – adjustment to RTS for me
Note – after discussion the company that proposed the use of ‘Domestic Percentage’ to alter RTS from the DPID withdrew the proposal

33. 3. Calculated Discharges
Can a DPID have two calculated discharges, only one of which is subtracted from sewerage volumes?
WRC 055 did not allow for this.
Workarounds
Use a fixed or banded charge for CD2;
Create a second DPID; one for CD1 and one for CD2 W
RTS * W – CD1
CD1
CD2
Metered Sewerage
DPID

34. 4. Sample Results to CMOS charging
How do I use sample results to update charging parameters (Ot, St) on CMOS?
The Market Terms do not specify how Wholesalers should interpret sample results
Transparency requirement: The .. Wholesaler shall set out in its Wholesale Tariff Document all information required to identify and calculate all payments .. [Business Terms]
So, Wholesalers are free to calculate values:
Annually, quarterly, monthly;
After each sample;
Using a default value for class of customer

35. 5. Sample Results to CMOS charging
What is the timeframe for sample results to be updated on CMOS for billing purposes?
When any TE operational parameters set … including Ot (D6006) and St … requires to be updated, the … Wholesaler shall notify the Market Operator within two (2) Business Days of the change(s) [CSD 0206]
This is within two Business Days of making the change to the parameters; not two Business Days of taking or analysing the sample

36. 6. Billing for Samples
How is the billing for the samples going to be passed on from the Wholesaler to the Retailer?
Some companies charge separately for samples
Such charges need to be explicit in the Wholesale Tariff Document
Could use:
Fixed charge component
Banded charges component to represent these

37. 7. Multiple Addresses
Why is there an address field on the T121.W as well as the address field for the sewerage SPID?
In many cases the address for the SPID and the DPID will be the same;
In larger premises, the DPID might only refer to a part of the premises;
Indeed different parts of a single large premises might have multiple consents each relating to different parts of the premises
The address field allows this to be specific.

38. 8. Retrospectively create SPIDs
Can we retrospectively issue SPIDs for cases where a consent (DPID) has already been issued?
It is impossible to create a DPID without a SPID
If a consent has been issued and the market terms require a DPID
Eg. not a temporary consent
Then – YES
You will need to go and retrospectively
Create the SPID;
Create the DPID

39. 8. DPIDs with Multiple SPIDs
One Sewerage SPID for premises that cover more than one unit where there are multiple water SPIDs for the same premises (potentially multiple meters)
A DPID can only be associated with one sewerage SPID
It could be:
A single premises with multiple water meters; or
Multiple premises each with a single meter
Expect premises to be the same for water/sewage supply:
Wording in Schedules 2A, 2B of Water Act is identical in describing water and sewerage premises
Ofwat guidance – every property that is assessed separately for purposes of council tax

40. 9. A case of a supermarket with a car wash
A supermarket with a car wash on their site operated by a different entity. Only meter for TE car wash is the meter for the supermarket.
Eligibility guidance as previous slide:
Is it one site or two sites each with Water & Sewerage SPID
If one site – the OK
If two sites:
Unmeasured car wash
Assessed water
Calculated Discharge

41. 10a. Estate with Private Water Meter
An industrial estate with bulk water supply. Owner pays for water and wastewater. Customer embedded on the estate private water meter needs TE consent
Technically, can create separate sewerage SPID for TE customer with water supply from private water meter
Meter network would calculate water and sewerage volumes correctly for industrial estate
Private TE meter on embedded site could be used to calculate TE
But – is this a separate premises. Should customer also get to choose its water retailer?

42. 10b. Estate with Private Water MeterPW
Water Supply
DPID
Sewerage SPID

43. Wrap up and close
Tom Notman

44. Safe journey home!