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Published byΚαλλιστράτης Παπαϊωάννου Modified over 6 years ago
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Capacity/Commodity Split Impact on Suppressed reconciliations
Distribution Workstream 24th April 2008 Linda Whitcroft
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Capacity/Commodity Split & Suppressed Reconciliations
Distribution Network Pricing Consultations Distribution Networks proposed change to current regime Increase the capacity element of the Local Distribution Zone (LDZ) system charges Move to 95% capacity and 5% commodity Effective 1 October 2008 Final decision published during December 2007 by Ofgem
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Capacity/Commodity Split/Suppressed Reconciliations
Introducing a capacity/commodity 95:5 split will distort the results of the filter failure mechanism if not redesigned. Erroneous charges would be released Risk to all Shippers Analysis was carried out xoserve to ascertain changes required to keep the same population of filter failures following the price changes NB. Currently 89% of suppressed reconciliations are adjusted with 11% being approved Analysis included changes to TRE (NRE and ZRE) charges – as per current process and ZRE only
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Recommended Option Move to a ZRE Filter
Shown to provide the best MPRN selection match to the current filter Less subject to change due to NRE not being used Therefore parameter values not expected to be modified on regular basis, hence fewer consultations and changes to Suppression Guidelines required Reduces risk of non ability to amend the parameter values in line with price changes Date specific filters – TRE used until 30/9/08 and ZRE used from 1/10/08
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Current Filter Values and Current Charge TRE Calculation
EUC BAND SPAQ BAND NAME BAND NO TRE FILTER (£) (debit or credit) ZRE FILTER 2 3 4 5 6 7 8 9 73,200 to 292,999 293,000 to 731,999 732,000 to 2,195,999 2,196,000 to 5,859,999 5,860,000 to 14,649,999 14,650,000 to 29,299,999 29,300,000 to 58,599,999 58,600,000+ 1 10 15 20 £0.47 £0.91 £1.32 £1.75
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Capacity/Commodity Split/Suppressed Reconciliations
Example Pre 1/10/08 Post 1/10/08 AQ (kwh) 100,000 Start date End date No. days 30 EUC Band 2 Filter Tolerance £5/day Rec (kwh) Charges pre October post October GRE £800 ZRE £300 £30 NRE TRE (ZRE + NRE) £330 £60 Average TRE per day £11 £2 RESULT FAIL PASS New Filter - £0.47 p/day, therefore FAIL
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