Nexus WorkgroupCSEP Transition Topic

June 2014

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Contents

• Current numbers

• Naming conventions Modification 0440 Project Nexus – Single Service Provision

• iGT Agency Services overview

• iGT data preparation

• Transition / cutover matters

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Live Projects – 41,567

LMN Count – 215,660

Domestic LMNs – 211,123

I&C LMNs – 4,537

Supply Points – 1,613,461

DM supply points on CSEP networks – 9, of which 5 do not meet Class 1 DM mandatory criteria

CSEPs Numbers3

Naming conventions

• The following slides set out the proposed conventions for the GT arrangements to the Connected System Exit Point (CSEP).

• New names are required for the connections at and within the CSEP on the iGT gas system (IGT System) and GT gas system (GT System).

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Naming Convention - Current pre-Nexus arrangements

• The CSEP is provided with a reference number• Each iGT maintains individual meter point reference numbers for the

supply meter points on the iGT System• Logical Meter Numbers (LMNs) are used by the iGT and Xoserve to

administer the GT arrangements to the CSEP e.g. transportation invoicing

• Each Larger Supply Point (LSP) has a unique LMN• For Smaller Supply Points (SSP) the iGT aggregates values for each

shipper and provides one LMN for each shipper’s aggregate values to Xoserve

• Xoserve uses the LMNs to administer GT and energy balancing arrangements

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Naming Convention - Current pre-Nexus arrangements

• The current arrangements use two reference numbers; the iGT MPRN and the LMN.

• The iGT MPRN is used to establish commercial arrangements with the iGT

• The LMN is used to establish commercial arrangements with the GT• In future the iGT MPRN will be used as the reference for both iGT

and GT commercial arrangements

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Naming Convention - Nexus arrangements

• To enable Shippers to use the 4 settlement products, the LMN and aggregation processes need to change.

• In future each supply meter point and supply point to the CSEP will be recorded individually, and where processes require, aggregation will be completed by Xoserve

• To make these arrangements effective new UNC defined terms are required to accurately name the physical and commercial arrangements at the CSEP.

• The following slides set out these new arrangements• Note: GT transportation charging principles are not affected by these

new naming conventions

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GT system

iGT system

CSEP, against which is recorded the CSEP Supply Point* and CSEP Supply Meter Point*. These correspond to the IGT System Supply Point and IGT System Supply Meter Point

GT charges to this point* New defined terms in UNC

Independent Gas Transporter System Supply Point (IGTS Supply Point)* andIndependent Gas TransporterSystem Supply Meter Point (IGTS Supply Meter Point)*

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Naming conventions

• The physical Connect System Exit Point (where the iGT makes a connection to a GT pipe) is still the CSEP

• The point of the emergency control valve for a service pipe connection to a property on the iGT System is to be known as an Independent Gas Transporter System Supply Meter Point (IGTS Supply Meter Point)*.

• The Independent Transporter System Supply Meter Point is also the Independent Gas Transporter System Supply Point (IGTS Supply Point)* for commercial arrangements.

• The CSEP Supply Point* and the Independent Gas Transporter System Supply Point is a one : one relationship. I.e. a CSEP Supply Point corresponds to an Independent Gas Transporter System Supply Point.

* New defined terms in UNC

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Naming conventions

• The CSEP Supply Meter Point* and Independent Gas Transporter System Supply Meter Point is a one : one relationship. I.e. each Independent Gas Transporter System Supply Meter Point corresponds to a CSEP Supply Meter Point recorded at the CSEP. The CSEP Supply Meter Point will not be a physical item it is a notional value against which GT services are provided.

• GT arrangements e.g. transportation charging etc are made up to the CSEP Supply Meter Point (at the CSEP) and not beyond.

• The Shipper will nominate the Class (product 1,2,3 or 4) for each individual CSEP Supply Point. This will be will be done by the Shipper nominating the Independent Gas Transporter System Supply Point with the relevant Class code. This then sets the arrangements for the GT transportation for the CSEP Supply Point.

* New defined terms in UNC

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GT system

iGT system

Registration – a Shipper registers the iGTS Supply Point and is therefore registered to the corresponding CSEP Supply Point

iGTS Supply Point

CSEP Supply Point

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GT system

iGT system CSEP, against which is recorded the

CSEP Supply Point and CSEP Supply Meter Point. These correspond to the IGTS Supply Point and IGTS Supply Meter Point

iGTS Supply Point (MPRN 7412345678) nominated as Product 2

Shipper makes gas nominations daily to this point (here CSEP Supply Point) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT chargesEnergy is allocated to this point (here CSEP Supply Point) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT chargesEnergy is reconciled to this point (here – CSEP Supply Point) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT charges

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iGT Agency Services overview

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Scope of iGT Agency Services

• Xoserve, as the iGT Transporter Agency, will provide services on behalf of iGTs, these include:

• CSEP record creation• MPRN record creation• Supply Point Register maintenance• Change of Shipper/Supplier processing• Read submission• Annual Quantity review• Query services

• Shippers will have a single interface for services regardless of GT type.

• Xoserve will not be providing iGT transportation invoicing on behalf of iGTs

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• The UK Link Programme in Xoserve set up to deliver the changes as part of the replacement of UK Link

• As part of the programme of work we are identifying:

• Transitional requirement’s - where a technical solution is needed to meet pre 1st October obligations

• Cut Over issues – one off activities to move from legacy systems/processes to UK Link

• Data Requirements

• For iGT Supply Points this includes a data preparation database to ensure iGT data is compatible with the UK Link system

UK Link Programme15

iGT Single Service ProvisionData Preparation Overview

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Background

• UNC Modification 0467 raised to obligate the provision of iGT CSEP and Supply Meter Point data to Xoserve

• Required to enable the implementation of UNC Mod 0440 and iGT UNC Mod 039 (Single Service Provision)

• Supporting Non-Code User Pays Service established to recover costs (UP Change 007)

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Purpose of Data Preparation

• Supports the implementation of iGT Agency Services through:

– Capturing of the required data for all unmetered CSEPs and associated Supply Meter Points (SMP) from all iGTs

– Mapping of MPRN to CSEP to iGT Licence Holder to iGT organisation

– Validate, cleanse and update CSEP and SMP data

– Identify any CSEP discrepancies with CSEP system

– Provide portfolio reports to iGTs, GTs and Shippers

– Prepare data ready for migration into the new UK Link System

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Key Data Interactions19

Industry Reporting

• Portfolio reports will be issued to relevant iGTs, GTs and Shippers for verification

• Data quality reports will be issued to the iGTs

• Any resulting updates that are required to either the CSEP or Supply Meter Point data will be submitted to Xoserve via the relevant iGT

• A final portfolio report will be issued to confirm the definitive CSEP and Supply Meter Point data set just prior to migration

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Transition and cutover matters21

• Larger Supply Point (LMN) reconciliation• Change of Supplier events• Supply Point Register updates• iGT UNC modifciations

Modification 432 creates arrangements for individual meter point reconciliation for all supply points. With the implementation of iGT Agency Services modification 432 will apply to all iGTS supply points at the CSEP.

For an iGTS supply point, the first reading submitted by a shipper after 1st October 2015 will create a reconciliation back to the previous read i.e. before 1st October 2015

For smaller supply points, this reconciliation will be split into 2 periods, with only the period after 1st October 2015 generating a charge.

1st October 2015 Read 2Read 1

Rec period (not billed) Rec period (billed)

Reconciliation22

CSEPs Large Supply Point Reconciliation

Pre Cut Over - CSEPs Data Base Post Cut Over - SAP

LMN LSP Meter readings will not be used between 1st August 2015 – 30th September 2015 in LMN

rec or loaded to UK Link

Meter Reading 10th June 15

Loaded into SAP

Meter Reading Nov 15

Individual MPRN Reconciliation using meter read consumption between June

15 to November 15

= Rec Period

Exceptions will be made for Shipper Transfers and meter exchange

1st August 2015

LMN reconciliation up to 10th June 15

1st Oct 2015

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For Larger Supply Points (LSP) there is a transition matter to consider. LSPs are already subject to individual meter point reconciliation at Logical Meter Number (LMN) level on existing CSEPs off-line systems.

The first read post 1st October 2015 will create a reconciliation back to the read loaded to UK Link system (from the data preparation database)

To ensure there is sufficient time to process reconciliations on the CSEPs off-line system before it is decommissioned, the off-line system will be “closed” early.

We would expect that all reads processed prior to 1st August 2015 would generate an LMN Reconciliation pre 1st October 2015

Only LSP reconciliations required as a result of a shipper transfer or meter exchange will be processed.

CSEPs Large Supply Point Reconciliation 24

• LMN Reconciliation will not be processed for reads post 1st August 2015

• LMN reconciliation periods will be up to the last reading provided to the data preparation database (the one to be loaded to UK Link) i.e. the read pre 1st august 2015

• The last reading provided to the data preparation database i.e. the read pre 1st August 2015 will be the opening reading in UK Link for the next reconciliation period i.e. the next read after 1st October 2015

• Read history will be loaded in UK Link to allow AQ process to commence on reads post 1st October 2015

CSEPs Large Supply Point Reconciliation 25

In-flight Change of Shipper events

• There will be change of Shipper events in progress at Cutover.

• The Shipper will have instigated the process using iGT processes and file flows

• The incumbent Shipper will have received some information regarding the event

• The end point of the event occurs after 1st October

• What needs to be achieved is clear, the optimum solution has not yet been developed

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In-flight supply point register updates that pre-date 1st October 2015

• iGT Supply Point Register updates e.g. meter reading, meter asset updates etc, – Events e.g. meter reading and meter asset, will be occurring on

30th September– Consideration is being given to the iGT supply point registers

which may have to close their final position on [27th] September to allow updates to be processed, passed to Xoserve, applied to the data preparation database to enable the final shipper portfolio to be issued to Shippers and for the data to be migrated to UK Link.

• Any supply point register updates will need to be submitted by the Shipper post go-live and will be effective on the system for the correct date. Due to timing some meter reads may reject.

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UNC modification 432 Project Nexus – Gas Demand Estimation, Allocation, Settlement and Reconciliation reform, creates 4 classes of supply points:

Class 1 - Daily Metered (Transporter provided read service):• supply points with an AQ in excess of 58,600,000• supply points connected to the NTS• DNi supply points (note minimum AQ for DNi eligibility is 5,860,000)• Mod 458 (still subject to approval), Seasonal Large Supply Points.

Class 2 - Non Time Critical Daily Metered (Shipper provided read service) supply points with an AQ up to 58,599,999Class 3 - Batched Daily Reading, (a months reads provided in one file to allow reconciliation by daily readings) supply points with an AQ up to 58,599,999Class 4 - Periodic Readings, supply points with an AQ up to 58,599,999

For iGT supply points, those supply points meeting the Class 1 criteria will migrate as Class 1, all other supply points will be migrated as Class 4.*

Supply Point migration28

* Current DMV sites and their migration class is under review

iGT UNC modification for service consistency29

• Changes to the GT UNC need to be reflected in the iGT UNC to ensure service consistency and correct arrangements to the CSEP

• Example modifications include:

– 410A Responsibility for gas off-taken at Unregistered Sites following New Network Connections

– 424 Re-establishment of Supply Meter Points – prospective measures to address shipperless sites

– 425 Re-establishment of Supply Meter Points – Shipperless sites

– 429 Customer Settlement Error Claims Process (and 474S)

– 431 Shipper/Transporter - Meter Point Portfolio Reconciliation

– 463S Recognition of the ‘2nd January’ Scottish Bank Holiday as a Business Day for Supply Point related transactions

– General data permission release modification