Individual Meter Point Reconciliation

1
Individual Meter Point Reconciliation
2
What?

• Calculation of actual energy used at meter point
  level for all supply points
• Allow sites to be accurately reconciled
• Incentives on shippers to obtain reads
• Transparent supporting data

3
Why?

• RbD was essentially an interim step to enable
  competition amidst data, process and system
  limitations
• RbD works with one dominant shipper, however,
  there are now six shippers with large RbD
  portfolios
• Approx 400TWh of unreconciled energy p.a.
• Huge potential cost misallocations
• Support for reform from RbD shippers
• The industry has evolved, as has technology, no
  excuse for acceptance of imprecise settlement
  arrangements
• UK Link replacement system due in 2012
• Electricity has worked for almost a decade ???

4
When?

• Jul 07 Review proposal to Panel
• Aug 07 Initial review group meeting
• Oct 07 Report to Mod Panel
• Nov 07 Raise mod consultation
• Jan 08 Panel recommendation
• Q1 08 Ofgem determination

5
Benefits

• More certainty for RbD shippers
• Incentives to get meter readings
• Less potential for gaming on AQ review
• Smaller AQ review process
• More correct cost allocation to shippers
• Improved data quality
• Will emphasise extent of other leakage points
  and increase incentives on market to address
• Reduced risk for RbD shippers
• Incentives for smart metering

6
Issues

• Type of Model LSP / electricity / other
• Establish an accurate view on costs
• Funding arrangements
• Resistance from neutral participants
• Timing
• Shipper performance targets
• Reconciliation periods
• Impact on settlements
• Data aggregation
• Inclusion of IGT meter points