1. Nexus Workgroup Winter Consumption and the influence on Winter Annual Ratio (WAR) Bands
8th January 2014

2. Background
It is mandatory for Supply Points with an AQ greater than 293,000 KWh to be monthly read.
For monthly read sites with a AQ value >293,000 kwh, where the relevant meter reading history is available, a winter consumption is calculated
The winter consumption value is used in the allocation of an EUC War Band
The WAR band ensures the Supply Point is assigned to an EUC band that reflects the Supply Points consumption during winter period
If the required meter reading information is not available then a Winter Consumption cannot be derived and the Supply Point is allocated to a default EUC band.

3. Current Process
Winter : Annual ratio is calculated based on reads loaded during the winter months
Optimum meter read period is 121 days between 1st December and 31st March
Start read between 1st November to 31st December
End read between 1st March and 30th April
A WAR Band is assigned based on the ratio of consumption during the winter (uses the AQ)
Notification is sent to Shippers of the MPRN & the assigned EUC
Shippers have an amendment window (1st June and 13th August) or AQ Appeal window (14st September to 31st July) to submit reads to re-calculate the winter consumption (via Spec Calc)

4. Stats
There are approx. 74,000 Meter Points with an AQ above 293,000 kWh and so would be eligible for a Winter Consumption calculation (and Monthly Read).
In 2013 there were 6,053 Winter Consumption calculations submitted to the Spec Calc
This is not the number of Winter Consumption Appeals raised and then successfully Confirmed. The 6,053 is the number of Winter Consumption calculations submitted to the Spec Calc which in theory (not counting duplicate/multiple submissions) would be the maximum number of Winter Consumption Appeals submitted.
 Therefore, in 2013 only 8% of Winter Consumptions were challenged

5. Proposed Process Same principle as the AQ review process
Reads are submitted and validated
The validated reads are used to calculate the AQ and goes live 1st of the following month
No appeals or amendment
WAR band assigned based on validated reads loaded (same reads used for AQ)
Submitted to the Shipper during September
EUC and WAR band goes live from 1st October