Development Workgroup 0282Development Workgroup 0282

Action 018 – impact on RbDAction 018 – impact on RbD

13 September 201013 September 2010

Action 0282/018

“xoserve RbD expert to consider the proposal impacts and provide a view/attend the next meeting”

This action refers to treatment of SSP vacant sites in the RbD calculations

What is RbD?

Reconciliation by Difference is the substitute for meter point reconciliation in the SSP market

SSPs receive energy allocation and commodity charges via NDM Daily Allocation process

Individual meter readings are not used to reconcile SSPs Within each LDZ, every LSP rec has an equal and opposite

entry in RbD – both energy and commodity charges RbD charges are apportioned on basis of live (not isolated) SSP

AQ Monthly RbD values are dependent on the number and value of

LSP Recs in the month RbD energy is usually a small fraction of commodity allocation

Comparison to other existing/future scenarios

Capacity Energy Commodity RbD

Allocation Allocation Smear

Isolated & Withdrawn sites

Isolated sites √

DWG 0270 – Elective Meter Point Rec for SSPs Proposed treatment √ √ √ √

DWG 0282 – Vacant sites Suggested treatment √ √

Financial Impacts of RbD

For the 12 months to July 2010, RbD represented 2.2% of total SSP Allocation

% varies between months depending on levels of reconciliation and allocation and financial adjustments

Assessment of Suggested Treatment

No precedent for sites being subject to RbD but not allocation No parallel with DWG 270 Elective Meter Point Rec proposal

Those sites remain in Allocation Retaining those sites in RbD shares the unaccounted for gas across

all active SSPs Leaving those sites in RbD should be a simpler change

Leaving Vacant sites in RbD is not consistent with similar scenarios, e.g. Isolations Risk of erroneous isolation is borne by remainder of SSP market

No reduction in complexity of change