Billing operations forum 24 july 2007 rbd overview
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Billing Operations Forum 24 July 2007 RbD Overview. Fiona Cottam. Agenda. Background Principles Inputs Sources Shares Sectors Calculations. The RbD Concept. Meter point reconciliation would not be cost effective for 20 million SSPs

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Billing Operations Forum 24 July 2007 RbD Overview

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Billing operations forum 24 july 2007 rbd overview

Billing Operations Forum24 July 2007RbD Overview

Fiona Cottam


Agenda

Agenda

  • Background

  • Principles

  • Inputs

    • Sources

    • Shares

    • Sectors

  • Calculations


The rbd concept

The RbD Concept

  • Meter point reconciliation would not be cost effective for 20 million SSPs

    • Larger Supply Points (AQ>73,200 kWh) are reconciled on actual meter reads

    • Smaller Supply Points (AQ<73,200 kWh) are subject to Reconciliation by Difference

  • Britain’s distribution Network is divided into 18 LDZs

  • Total daily energy consumption in each of the LDZs is known

  • Any reconciliation charge in one sector must have an equal and opposite effect on other sectors, so that total LDZ consumption is unchanged

  • Reconciliation consists of a gas charge/credit and transportation charge/credit to User for both NTS and LDZ transportation


Rbd basic concepts 1

RbD Basic Concepts - 1

  • If you know the RQ (Reconciliation Quantity) for Segments 1 to 4, from reading all the meters in them, then…

  • The RQ for Segment 5 must be equal and opposite to the Sum of the RQs for Segments 1 to 4.

  • Therefore, you don't need to read any meters in Segment 5 to calculate the total RQ for the Segment. Just apply the equal and opposite rule: Source Charges


Energy allocation summarised

LDZ

Input

Energy

Allocation of

Measured Energy

input into LDZ, after deducting Shrinkage and DM measurements, to all NDM Supply

Points in the LDZ

NDM

Large

NDM

Small

DM

Shrinkage

Energy Allocation - Summarised

The allocation process drives the shippers’ energy balancing imbalance and transportation commodity quantities


Reconciliation by difference smaller supply points

LDZ

Input

Energy

NDM

Large

DM

d

NDM

Small

DM

NDM Large

+

d

= -

NDM Small

d

Shrinkage

Reconciliation by Difference(Smaller Supply Points)


Rbd basic concepts 2

RbD Basic Concepts -2

  • As all SSPs have:

    • AQs calculated on the same basis

    • Energy deemed to them on the same basis

    • Comparable actual consumption patterns

  • Then:

    • They will have comparable RQs

  • And:

    • CSEP sites are no different to Directly Connected, they are affected by the same weather/social/economic factors, so their behaviour is comparable to directly connected


Rbd basic concepts 3

RbD Basic Concepts - 3

  • If:

    • All SSPs in an LDZ are comparable, and

    • Their RQ is directly related to their AQ

  • Then:

    • Shipper's total SSP RQ is proportional to their total AQ in an LDZ

  • Thus:

    • We can allocate RQ on the basis of each Shipper's Share of the total AQs for an LDZ

  • For this purpose, CSEP AQ ranks equally with Directly Connected


The matching concept

The Matching Concept

  • Group LSP RQs by Meter Read Frequency

    • RbD Sectors

  • Give each Sector an Incurred Period of same length as Meter Read Frequency (specifically: Monthly, 6 Monthly, Annual)

  • Slice RQ into equal amounts for each incurred month in the incurred period

  • Apply appropriate shipper share to the RQ slice for each incurred month


  • Rbd sectors and sources

    1 Month Sector (M)

    Sources:

    DM Estimate to Actual

    NDM Monthly read meters

    Adjustments to Monthly read meters

    Reconciliation of LSPs on CSEPs

    Adjustments to LSPs on CSEPs

    Adjustments to SSPs of <1 month duration

    LDZ Measurement Sector (L)(Special case 1 month sector)

    Sources:

    LDZ Measurement Errors

    6 Month Sector (6)

    Sources:

    NDM Non-Monthly read meters

    Adjustments to Non-Monthly read meters

    Adjustments to SSPs of 1-4 months duration

    12 Month Sector (A)

    Sources:

    DM Annual Resynchronisations

    Adjustments to SSPs of >4 months duration

    RbD Sectors and Sources


    Apportionment of rbd sectors 1

    Apportionment of RbD sectors - 1

    6 monthly sector

    Monthly and LDZ errors sectors

    12 monthly sector

    Apportion

    over last 12 months

    Apportion

    over last month

    Apportion

    over last 6 months


    Apportionment of rbd sectors 2

    Apportionment of RbD sectors - 2

    • Matching of RQ to Shipper Shares

    Month

    -11

    Current Month

    Sector A

    Sector 6

    Sector M

    Sector L


    Rbd charges which prices

    RbD Charges – Which prices?

    • Energy – daily System Average Price – no calculation required – inherit from “primary” reconciliation

    • Transportation – applicable daily rates of:

      • NTS Exit Commodity

      • LDZ Commodity

      • Customer Commodity (for applicable periods)

    • CSEP sites

      • Same energy prices

      • Same NTS commodity prices

      • LDZ commodity prices reduced to reflect average scheme SOQ in the LDZ

      • No Customer Commodity charges

    • Primary Reconciliation energy is broken down into periods of consistent transportation prices, and prices are applied to a single figure for each source


    Calculation of market shares principles

    Calculation of Market Shares - Principles

    • Market share is based on share of all the days in a particular month

    • Live AQ on the day

    • Isolated/isolated & withdrawn excluded (same as for allocation)

    • CSEP sites count equally with Directly Connected sites for energy apportionment


    Calculation of market shares example

    Calculation of Market Shares - Example

    Shipper market share for the month: 600,000 ÷ 1,000,000 = 60%


    Rbd apportionment worked example

    RbD Apportionment – Worked example

    • Let's Assume:

      • Reconciliation on a non-Monthly-Read meter, from 15/03/2006 to 15/10/2006

      • Initially suppressed, approved in December 2006, to be included on December 2006 invoice (issued January 2007)

    • Imaginary 3-Month Sector Applies

    • Reconciliation values

      • RQ: 120,000 kWh

      • GRE: £9,000

      • NRE:£200

      • ZRE:£600


    Rbd calculations cum aqs

    RbD Calculations - Cum AQs

    Monthly Cumulative Daily Aggregate AQs

    For an imaginary LDZ with four Shippers

    Shipper

    Month 1

    Month 2

    Month 3

    ONE

    600,000

    700,000

    800,000

    TWO

    250,000

    200,000

    150,000

    THREE

    0

    50,000

    50,000

    FOUR

    150,000

    50,000

    0

    LDZ Total AQ

    1,000,000

    1,000,000

    1,000,000


    Rbd calculations uarq user aggregate rq

    Sector Q

    RbD Calculations – UARQ (User Aggregate RQ)

    Sources

    Incurred

    Total

    Month 1

    Month 2

    Month 3

    RQ (kWh)

    120,000

    40,000

    40,000

    40,000

    ARQ (kWh)

    -120,000

    -40,000

    -40,000

    -40,000

    Shipper Share(AQ):

    One

    600,000

    700,000

    800,000

    Two

    250,000

    200,000

    150,000

    Three

    0

    50,000

    50,000

    Four

    150,000

    50,000

    LDZ Total AQ

    1,000,000

    1,000,000

    1,000,000

    RbD UARQ:

    Total

    One

    -84,000

    -24,000

    -28,000

    -32,000

    Two

    -24,000

    -10,000

    -8,000

    -6,000

    Three

    -4,000

    0

    -2,000

    -2,000

    Four

    -8,000

    -6,000

    -2,000

    0

    Total RbD UARQ

    -120,000

    -40,000

    -40,000

    -40,000


    Rbd calculations uarcv rbg

    Sector Q

    RbD Calculations - UARCV/RBG

    Sources

    Incurred

    Total

    Month 1

    Month 2

    Month 3

    GRE

    9,000

    3,000

    3,000

    3,000

    ARCV

    -9,000

    -3,000

    -3,000

    -3,000

    Shipper Share (AQ):

    One

    600,000

    700,000

    800,000

    Two

    250,000

    200,000

    150,000

    Three

    0

    50,000

    50,000

    Four

    150,000

    50,000

    LDZ Total AQ

    1,000,000

    1,000,000

    1,000,000

    RBG Charges:

    Total

    One

    -6,300

    -1,800

    -2,100

    -2,400

    Two

    -1,800

    -750

    -600

    -450

    Three

    -300

    0

    -150

    -150

    Four

    -600

    -450

    -150

    0

    Total RBG Charges

    -9,000

    -3,000

    -3,000

    -3,000


    Rbd calculations contd

    RbD Calculations – contd.

    • Identical process calculates:

      • UARCV: User Aggregate Reconciliation Clearing Value

        • Energy cost of Reconciliation Energy (“RBG”)

      • UATCA: User Aggregate Transportation Charge Adjustments

        • Commodity Transportation costs

        • Since Sale of Networks, split between NTS, LDZ and Customer Commodity Reconciliation


    Rbd supporting information

    RbD Supporting Information

    • Breakout of Charges by:

      • LDZ – Directly connected

        • Energy – RBG

        • Transportation – RBN/RBZ/RBC

          • - Sector

      • LDZ – CSEP

        • Energy - RCG

        • Transportation – RCN/RCZ

          • - Sector

    • Breakout of Shares by:

      • LDZ

        • Incurred Month

          • - Calendar Day


    Worked example for shipper one for dummy sector q

    Worked example for Shipper One for Dummy Sector Q

    • Shipper One’s RBG records for Month 1,2 and 3:

      • J13, 123456779, RBG, AB, 10, 2006, Q, 1000000, 600000, 60.0000000000000, -24000, -1800.00, 123456,

      • J13, 123456780, RBG, AB, 11, 2006, Q, 1000000, 700000, 70.0000000000000, -28000, -2100.00, 123456,

      • J13, 123456781, RBG, AB, 12, 2006, Q, 1000000, 800000, 80.0000000000000, -32000, -2400.00, 123456

      • [record type, record no, chg type, LDZ, billing month, billing year, sector code, total LDZ AQ, Shipper total AQ, % market share, energy, financial value, invoice no]

      • J14, AB, Q, RBG, -120000, -9000

      • [record type, LDZ, sector code, total energy, total financial value]


    Role of the rbd audit

    Role of the RbD Audit

    • Calculations are performed within mainframe systems

    • Large volume of data

      • 500,000 LSPs

      • 20,000,000 SSPs

    • Confidentiality of each Shipper’s LSP Reconciliation values

    • SSP Shippers can’t check the whole calculation process

    • RbD Audit checks the following:

      • Aggregation of Primary Reconciliation sources and allocation into sectors

      • Extraction of SSP aggregate AQs

      • Allocation of RbD energy and charges to Shippers


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