1. SGN’s 2005/06 Shrinkage Assessment and Adjustment
Shrinkage Forum - 8th March 2007

2. Contents Methodology behind the Assessed Shrinkage Factors
LDZ Shrinkage Reconciliation Quantities
Financial value of Energy Adjustment
Financial value of Commodity Charge Adjustment

3. Methodology Behind the Assessed Shrinkage Factors
Leakage factor: only change is ASP
OUG factor: revised due to verification of Advantica model
TOG: remained constant

4. Assessed Shrinkage Factors 2005/06
Leakage Factor %
OUG Factor %
TOG
Shrinkage Factor%
LDZ
Applied
Assessed
Change
Constant
Scotland
0.482
0.035
0.012
-0.023
0.020
0.540
0.514
-0.026 SE
0.611
0.612
0.002
0.670
0.644
Southern
0.727
0.682
-0.048
0.780
0.714
-0.066

5. LDZ Shrinkage Reconciliation Quantities 2005/06
Assessed LDZ Shrinkage Quantity (kWh)
Procured LDZ Shrinkage Quantity (kWh)
LDZ Shrinkage Reconciliation Quantity (kWh) SC
302,706,259
318,144,415
-15,438,157 SE
469,365,436
488,668,392
-19,302,956 SO
326,899,378
357,242,147
-30,342,769
SGN
1,098,971,073
1,164,054,955
-65,083,882

6. Financial Value of Energy Adjustment
LDZ
Reconciliation Quantity (kWh)
Energy Adjustment (£s) SC
-15,438,157
-287,089 SE
-19,302,956
-375,587 SO
-30,342,769
-600,540
SGN
-65,083,882
-1,263,216

7. Financial Value of Commodity Charge Adjustment
LDZ
Reconciliation Quantity (kWh)
Commodity Charge Adjustment (£s) SC
-15,438,157
-45,713 SE
-19,302,956
-56,235 SO
-30,342,769
-88,401
SGN
-65,083,882
-190,350