Joel Martin

23rd November 2010

MOD 329 – UNC Rules on setting SHQs / SOQs & the Network Referral Process.

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LDZ Capacity Registration

• Users are required to register DM Supply Point Capacity in accordance with UNC TPD Section G5 (UNC TPD Section B4.2.1)

• Users are registered as holding LDZ Capacity at each Supply Point Component – UNC TPD Section B4.4

• Supply Point Capacity (SOQ) subject to maximum and minimum requirements (UNC TPD Section G5.1.3)

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DM Supply Point Capacity Minimum Requirement.

• SOQ shall not at any time be less than the Bottom Stop SOQ (UNC TPD Section G 5.2.1 (a). (Subject to G5.2 Transitional rules)

• BSSOQ defined as the highest User Supply Point Daily Quantity for any day outside the period June to September in the Preceding Year, but not higher than the Maximum Supply Point Capacity.

• Maximum Supply Point capacity defined as:

“The quantity which the Transporter determines to be the maximum quantity which it is feasible to make available for offtake in a 24 hour period at the DM Supply Point”. (UNC TPD Section G5.5.1 (a).

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DM Supply Point Capacity Minimum Requirement II

• SOQ shall not at any time (except within the Capacity Reduction Period) be less than the Prevailing Supply Point Capacity. (UNC TPD Section G5.2.1 (b).

• Prevailing SOQ – is the Supply Point Capacity for the time being held by the Registered User. (UNC TPD Section G5.2.3 (c).

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DM Supply Point Capacity Minimum Requirement III

• Transition Rules implemented 21/12/09 – UNC MOD 275 (UNC Transitional Document Part II C 1.9).

• Users allowed to reduce SOQ below BSSOQ.

• Effective during the Capacity Reduction Period only.

• One application per Capacity Reduction Period only.

• Specific rules for Interruptible Supply Points.

• Transitional Rules valid until 6am 01/10/11.

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DM Supply Point Capacity Maximum Requirement.

• The Provisional Maximum Supply Point Capacity = the lesser of:

(a) 2 times the Prevailing Supply Point Capacity and

(b) 16 times the Supply Point Offtake Rate or the Nominated Supply Point Offtake Rate. (UNC TPD Section G 5.5.2)

• Rule ensures that >16 times SHQ = Network referral.

• Allows flexibility for ‘peakier’ profiles up to 16 x SHQ to increase SOQ without Network referral; where SHQ does not increase.

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DM Supply Point - Supply Offtake Rate (SHQ).

• SHQ Definition:-

“in respect of a DM Supply Point Component is the maximum instantaneous rate (in kWh/hour) at which a User is permitted to offtake gas from the Total System at that Supply Point Component”. (UNC TPD Section G5.3.1).

• User to apply for a SHQ (or revised SHQ) when:- (UNC TPD Section G5.3.2 (a – c) & G5.3.3 (a&b):

1. When submitting a Supply Point Nomination.

2. When submitting a Capacity Revision Application (increase or decrease).

3. Whenever the User becomes aware that the maximum offtake rate at a Supply Point is subject to any increase.

4. Estimate the SHQ (after discussions with the consumer).

5. SHQ not to be less than, nor substantially more than such estimate.

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DM Supply Point - Supply Point Offtake Rate – absolute requirement.

• UNC TPD Section G5.4.1:-

“A User’s Supply Point Component shall not be greater than 24 times, or less than 4 times, the Supply Point Offtake Rate”.

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DM Supply Point Capacity Maximum Requirement.

• The Provisional Maximum Supply Point Capacity = the lesser of:

(a) 2 times the Prevailing Supply Point Capacity and

(b) 16 times the Supply Point Offtake Rate or the Nominated Supply Point Offtake Rate. (UNC TPD Section G 5.5.2)

• Rule ensures that >16 times SHQ = Network Referral.

• Allows flexibility for ‘peakier’ profiles to increase up to x2 SOQ.

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DM Supply Point Capacity– Network Referral - Summary.

Requested SOQ Accept Reject Refer

SOQ > 2x - - Y

SOQ* < 2x Y - -

SOQ / SHQ < 4 x - Y -

SOQ* / SHQ 4 -15 x Y

SOQ / SHQ 16 – 24 x - - Y

SOQ / SHQ > 24 x - Y -

* - any increase in SHQ = Network Referral.

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Examples

Current Contracted SHQ (KWh)

Highest Recorded SHQ (KWh)

2008 2009

Site A 18,458 6,810 8,804

Site B 23,438 8,667 15,600

Site C 40,000 23,682 22,947

Site D 29,298 42,701 47,241

Site E 11,244 29,465 31,524

Site F 8,430 22,396 22,393

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Comparison of Nominated vs. Actual SHQ – 2009 (South East LDZ)

Graph displays, for each DM site, the deviation between highest measured SHQ during 2009 and SHQ nominated

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Comparison of Nominated vs. Actual SHQ – 2009 (Southern LDZ)

Graph displays, for each DM site, the deviation between highest measured SHQ during 2009 and SHQ nominated

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Comparison of Nominated vs. Actual SHQ – 2009 (Scotland LDZ)

Graph displays, for each DM site, the deviation between highest measured SHQ during 2009 and SHQ nominated