1. Mod 209 – Rolling AQ

2. Rationale for the proposal
Current AQ process has operated in much the same form and timescales since inception of code
AQ is a fundamental piece of information used throughout the industry
Although AQ is a historical calculation it is used as a proxy for future consumption
Consumption patterns are changing, evidence shows that demand is reducing, and the current process can create AQs that are on average 18 months old at the time they are applied
Where demand is changing more radically this can increase commercial risk for Shippers and Transporters
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3. Review Group 177
E.ON raised review group 177 to assess the potential for changing from an annual AQ change to a more regular update
Annual process causes ‘shocks’ on 1st October
Significant manpower required over a short period
Significant impacts to the UKLink system
AQ errors can be difficult or slow to correct
Regular updates smooth the impact across the year
AQ can respond faster to demand change
AQ errors can be corrected faster
System security is improved
Manpower resources can be consistent across the year
Should allow Smart Meter benefits to be incorporated more rapidly
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4. Modification 209
Review group 177 provided assurance that others across the industry also saw benefits from changing the AQ update process
A straw man was derived but didn’t resolve more detailed questions
With a complex issue like this it seems sensible to have developed a better understanding of the detailed requirements before proceeding to consultation
See this process as enabling the group to clarify how rolling AQ could be implemented in practice to enable full and informed responses to consultation
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