Mod 115 An alternative view

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Mod 115An alternative view

• Phil Broom
• Gaz de France ESS

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Measurement Issues and incentives in the monthly
read sector
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Monthly Read Performance Shipper A
Annual Average 98
Must Reads 3-4 per month
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Monthly Read Performance Shipper B
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Monthly read read performance shipper C
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Must Read Performance Shipper C
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Must Read Performance Shipper C
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Pricing Options

• Transportation rates should reflect actual rates
  to align with objectives of transporters
  charging methodology
• Compliance with the charging methodology results
  in charges which reflect the costs incurred by
  the licensee in its transportation business
• ..properly takes account of developments in the
  transportation business
• facilitates effective competition between gas
  shippers and suppliers
• Simple and efficient to administer for
  non-monthly portfolio only 2 rates apply
  (lt73,200 and 73,200 to 732,000)
• Should not be a penalty rate as per mod 640
  suppliers do not have control over many cost
  factors for unreconciled energy

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Conclusions basis of an alternative to mod115

• Monthly read sites create immaterial contribution
  to unreconciled energy costs as demonstrated by
  increased visibility and control
• Monthly read meters should be excluded from
  unreconciled energy smear charges
• Transportation rate should reflect actual rates
  to be consistent with transporters charging
  methodology
• Implementation timescales should allow time for
  building into forward customer contracts i.e. no
  earlier than October 07