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MOD Proposal 0224 Facilitating the use of AMR in the Daily Metered Elective Regime

MOD Proposal 0224 Facilitating the use of AMR in the Daily Metered Elective Regime. Code User Pays Services. 28 May 2009. Objectives. Background to Mod 0224 Development costs Forecast service demand DME Services Core Service Reconciliation Consumption Adjustments

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MOD Proposal 0224 Facilitating the use of AMR in the Daily Metered Elective Regime

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  1. MOD Proposal 0224 Facilitating the use of AMR in the Daily Metered Elective Regime Code User Pays Services 28 May 2009

  2. Objectives • Background to Mod 0224 • Development costs • Forecast service demand • DME Services • Core Service • Reconciliation • Consumption Adjustments • User Pays proposed charges

  3. Background • Mod 0224 seeks to allow users to elect for a daily settlement regime, rather than use the Non Daily Metered (NDM) demand profile • Implementation will allow shippers to submit Daily Metered (DM) reads for eligible sites within their portfolio, based on Meter Point EUC band • Phased approach still being assumed for costing / demand purposes • Proposed solution is to enhance existing DN systems and processes to achieve tactical solution ahead of Project Nexus • Mod 0224 is to be a Code User Pays service. Ongoing services will be included in the Agency Charging Statement (ACS) and follow the approved methodology

  4. DME Development Cost • The re-charge methodology has been agreed as part of the Mod Proposal • Development cost is c.£565k and will be recovered up front • Re-charge for all shippers, based on eligible Meter Points as at 28 April 2009

  5. Demand Forecast • Demand provided by users and collated by Ofgem based on potential price ranges, as shown below • To support charges a linear demand take up has been assumed, so full demand for each phase is not reached until final month of phase

  6. Demand Profile • Linear demand profile assumed for DME Core Service 3,176 1,686 1,490 667 Meter Points 1,019 Phase 3 (18 - 24 months) Phase 1 (12 months) Phase 2 (12 - 18 months)

  7. Code User Pays Services • The DME services will be charged under two categories and follows the approved User Pays charging methodology • DME Core Services • The core activities required by all users to participate in the regime will be charged at a daily rate per Meter Point • “Non performance” related services • There will be a transactional charge per individual “non performance” • Reconciliation Investigations • Consumption Adjustments

  8. DME Core Service • Core DME service activities will be performed by xoserve to facilitate the regime. These include; • Receipt and processing of daily DME reads • Manual validation of reconciliations (as per next slide) • Provision of mandatory reports • Monthly DME uptake report • Weekly DMSP notification report • Invoicing services • User Pays charges • DME read incentive • Shippers will incur charges on a daily basis, following confirmation of Meter Point to DM Elective regime

  9. Reconciliation Investigation • xoserve validates all DM reconciliations. This activity is included in the DME Core Service charge • Types of validation checks include; • Daily energy (GRE, NRE, ZRE charges) • Resynchronisation data • Excessive charges not created • Duplicate checks • Output of validation; • Approved reconciliation – no direct charge • Reconciliation requires further investigation and resolution, due to user error – TRANSACTIONAL CHARGE

  10. Consumption Adjustments • Shipper submits a consumption adjustment to xoserve, which is validated and processed offline. Online adjustments are managed through shipper file submission and included within development costs • Adjustments (after D+5 close out) must be submitted via ADJ1 form and during investigation xoserve may be required to liase with shipper to gain further information to process adjustment • Types of valid adjustments include; • Asset resynchronisation • Faulty equipment • Incorrect asset set up • Consumption adjustments will be charged following processing and receipt on DM invoice - TRANSACTIONAL CHARGE

  11. Proposed Price for Core DME Service • Charge is per Meter Point per day and to forecast to remain static for first 2 years, based on demand • Costs and demand will be published in ACS and will be reviewed as part of the wider ACS review process • Any prices changes will be discussed in principle at the User Pays User Committee

  12. Proposed Transactional Prices • All prices are for delivery of each activity • The costs are based on the estimated time taken to complete the activity and the associated costs of this time • There is also two additional Non Code User Pays reports that will be made available, these will be agreed through User Pays User Committee

  13. Year 3 Forecast • Assuming; • Operational cost remain as forecast • First 2 years demand achieved • Maximum demand reached in 6 month of year 3 • Year 3 daily rate c.£0.07 - £0.12 per MP 4,666 3,176 1,686 Meter Points 1,490 667 1,490 1,019 Phase 3 (18 - 24 months) Phase 2 (12 - 18 months) 24 - 36 months Phase 1 (12 months)

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