1. Modification 0429 scenarios v2.0By
Gareth Evans

2. Modification 0429

3. Scenario 1 –one shipper
MAM sets incorrect correction factor of 1.25 at site in September Actual correction factor should be 1.00
Annual consumption in system 10,000,000 kWh
Actual consumption 8,000,000 kWh
2,000,000 kWh (2Gwh) annual error
Error noticed in January 2012 and corrected at site.
Customer and Supplier agree size and duration of error by May 2012.
Xoserve notified June 2012

4. Scenario 1 timelines
* Using an assumed average SAP of 2.5 p/kWh, where appropriate.
Unidentified Gas Estimate source
Materiality
Value*
Applicable period
Total Size of gas error
13 GWh
£325,000
January September 2005
Total recoverable (Mod 0429 and reconciliation)
12 GWh
£300,000
January June 2006
Automatically reconcilable
8.5 GWh
£206,250
January 2012 – April 2008
Claimable under Mod 0429 process
3.5 GWh
£83,750
April 2008 – June 2006

5. Scenario 2 – two shippers
Turbine meter starts to incorrectly read consumption from October 2003.
Annual consumption in system 5,000,000 kWh
Actual consumption 7,000,000 kWh
2,000,000 kWh (2Gwh) annual error
Error noticed in January 2012 and corrected at site.
Customer and Supplier agree size and duration of error by May 2012.
Xoserve notified of error in June 2012.
Customer changed supplier in October 2007

6. Scenario 2
Unidentified Gas Estimate source
Materiality
Value*
Applicable period
Total Size of gas error
16.8 GWh
January October 2003
Total recoverable (Mod 0429 and reconciliation)
12 GWh
£300,000
January June 2006
Automatically reconcilable
8.5 GWh
£206,250
January 2012 – April 2008
Remainder not covered by settlement
3.5 GWh
£83,750
April 2008 – June 2006
Remainder not covered for Shipper 1
1 GWh
£25,000
April 2008 –October 2007
Remainder not covered for Shipper 2
2.5GWh
£61,750
October 2007 – June 2006
Shipper 2 can make a claim, Shipper 1 cannot as it is below the threshold. Shipper 2 would be able to make claim separately to Shipper undertaking reconciliation.

7. Waters Wye Associates:
Contact Details
Happy to answer questions :
Waters Wye Associates:
Gareth Evans