1

The AQ Operational Review Group Trial Calc AQ2013

31 Homer Road, Solihull28th March 2013

“Whilst every effort is made to ensure the technical accuracy of the information contained within this presentation, Xoserve can accept no responsibility for any claims (however they arise) made against the company

as a result of using the information contained within this presentation”

2

Agenda

1) Introduction2) To Review Outstanding Actions3) AQ2013 – Trial Calc

Section 1 - AQ Calculation Section 2 - Energy Movement

Section 3 - Fail to Calculate Section 4 - AQ Appeals

4) What’s on the Horizon 20135) A.O.B

3

Outstanding Actions

4

Action 1

5

Action 2 & 4

6

Action 3

7

Action 5 - SSP

8

Action 5 - LSP

9

Trial Calc 2013 Reports

Threshold Crosser Report - 16th January 2013

SSP Warning Report - 18th January 2013

LSP Warning Report - 25th January 2013

‘DE’ ‘EX’ Report - 29th January 2013

10

Section 1: AQ Calculations

11

AQ Calculations

12

AQ Calculations

•The volume of MPR’s that fail to calculate an AQ increases for the Trial Calc. It is anticipated that this will reduce for Actual Calc 2013.

•The volume of MPR’s that fail to calculate an AQ has increased by4,134,321 (89.5%) from Trial Calc 2012.

•84% of MPR’s that failed to calculate a Trial Calc AQ are live with a Shipper.

13

Section 2: Energy Movement

14

SSP to SSP Energy Movement (live RSU)

303

209

94

0

50

100

150

200

250

300

350

En

erg

y t

Wh

31/12/2012 AQ Proposed AQ

Calculated SSP-SSP Energy Warning SSP-SSP Energy

15

LSP to LSP Energy Movement (live RSU)

206172

117

92

117

0

50

100

150

200

250

300

En

erg

y t

Wh

Current AQ Proposed AQ Final AQ

Calculated LSP-LSP Energy Warning LSP-LSP Energy

16

SSP to LSP Energy Movement (live RSU)

4

240

53

0

50

100

150

200

250

En

erg

y t

Wh

Current AQ Proposed AQ Final AQ

17

LSP to SSP Energy Movement (live RSU)

1.2

0.4

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

En

erg

y t

Wh

Current AQ Proposed AQ

18

AQ Calculations Cont…

• There was a decrease in the volume of SSP revised AQ calculations• Trial Calc 2013 ~ 66%• Trial Calc 2012 ~ 85%

• There was a decrease in the volume of LSP revised AQ calculations• Trial Calc 2013 ~ 66%• Trial Calc 2012 ~ 67%

• The number of Threshold Crossers has decreased by 43%• Trial Calc 2013 ~ 218,506• Trial Calc 2012 ~ 381,065

• The decrease in Threshold Crossers could be attributed to the increased numbers of MPR’s which failed to calculate an AQ

19

Section 3: Fail to Calculate

20

SSP Fail to Calculate

21

SSP Fail to Calculate

22

SSP Fail to Calculate

• The volume of MPR’s that fail to calculate an AQ substantially increases for the Trial Calc due to the close proximity of the previous Actual Calc

• 10,223 MPR’s with a Meter Point status of ‘Dead’ or ‘Extinct’ are registeredwith a Shipper

• The volume of MPR’s which failed to calculate an AQ has increased by 89.5%

• The number of MPR’s which failed to calculate an AQ increased for ‘Insufficient Consumption Date to Calculate AQ’

• Trial Calc 2013 ~ 3,979,172• Trial Calc 2012 ~ 1,738,058

23

LSP Fail to Calculate

24

LSP Fail to Calculate

25

‘Insufficient Consumption Data to Calculate AQ’

•Triggered when the available Meter Reads do not meet the minimum AQ calculation criteria of 6 months and 1 day apart

•A successful AQ Amendment will reset the Back-stop date to be theEnd Meter Read used to derive the Xoserve proposed AQ (see example)

•The Back-stop date can be used by the Shipper as the start Meter Read for an AQ Amendment but is not considered by Xoserve for any future AQ Review.

Back-stop Date

26

What is the Back-Stop Date?

• The Back-stop is set following the successful Amendment to the AQ and will change from a default date of 30th September 2006 (WAALP Review)

• Resetting the Back-stop date ensures that potentially erroneous Meter Read data is not used for future reviews and protects the AQ

• The Meter Read for the Back-Stop will not be considered for the start Meter Read for any future AQ Review

• The minimum of two Meter Reads (six months and one day apart) will be required for a revised AQ to calculate from the date of the Back-Stop date

27

What is the Back-Stop Date?

• A Shipper can use a Meter Read on the date of the Back-stop date as the start Meter Read for an AQ Amendment.

• The Back-Stop date will not be set/revised if an AQ Amendment is submitted on a Meter Point that initially failed to calculate an AQ for the actual AQ Review.

28

AQ Amendment UNC Description

Uniform Network Code: G.1.6.4

(b) The provisions referred to in paragraph 1.6.4(a) are:

(i) that the Registered User reasonably considers that the Transporter's

calculation of the Provisional Annual Quantity is derived from: 

(1) Meter Readings that are incorrect or were taken prior to Meter Readings available to the Registered User; or

(2) materially incorrect details of the Supply Meter Installation for the relevant Supply Meter Point

29

Benefits of the Back-Stop Date?

The Back-Stop date will change following the successful Amendment to the AQ not only by the Shipper but Xoserve when the Threshold Crossers and LSP AQ calculations are validated/amended.

•The change to the Back-Stop date will ensure that any erroneous Meter Read and/or Asset information will not be available to Xoserve or the Shipper for future AQ Reviews.

30

AQ Amendment Capacity

• 12.75m AQ Amendments will be available to the Industry for AQ2013

• 8.5m AQ Amendments were submitted for AQ2012 which equates to 67% of the available allowance for AQ2013 (difference of 4,213,470)

• The daily AQ Amendment allowance for each Shipper will be issued in April along with the early release of the SSP AQ calculations

• AQ Amendment window will open on 1st June 2013

31

Section 4 : AQ Appeals

32

AQ Appeals

33

AQ2013 Review Timetable

34

AQ2013 Timetable

35

What’s on the Horizon

36

On the Horizon