Review of the FWACV Billing Regime
National Grid Gas Distribution
National Grid Gas Distribution – S Harrison, Northern Gas Networks – B Hanley
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Network Innovation Allowance
Gas Distribution Networks
The following scope will be undertaken:
- Define and confirm the commercial and accessibility drivers for NGGD, NGGT and gas suppliers.
- Establish the constraints of any billing system; these may be regulatory, commercial, legal, technical or related to demand and storage.
- Define the different sources of gas and how each may impact on the billing regime – this includes future supplies such as hydrogen injection, shale gas, coal-bed methane, storage and peak shaving and bio-methane.
- Consider other NIC projects that may impact on billing – for example, the extension of GS(M)R to include unballasted .
- Look at billing solutions in other countries operating regulated gas networks to establish and benchmark best practice.
- Establish whether it is possible to exempt a certain total volume from small suppliers from the FWACV billing process (that is, determine the total amount of low or high CV gas that impacts on the stakeholders). Use different scenarios to establish which combinations of network design, flows and CVs have no impact on end users and those which have a significant negative or positive impact. Engage with Ofgem.
- Review the factors affecting the delivery of gas to an end user – location on network, variation in demand affecting source of supply, summer-winter governor settings, gas storage use, HP Distribution system operation and interaction with NTS etc. and evaluate various options for locations of CV measurement systems.
- Use existing network models of real NGGD systems (with permission those previously used under IFI) or generate generic network models to establish where extra measurements may be required to maximise the benefits to all stakeholders. This modelling could include all pressure tiers within NGGD (LP to HP Distribution) and will also be able to assess the impact that NTS supply inputs could have on the CV of gas being delivered to the LDZ.
- Define the accuracy, type and function of each measurement system from network entry to network exit. Draw up a technical specification for each measurement system (including communications systems).
- Conduct a market survey to establish whether technical solutions that satisfy the specifications are already available or whether they need to be developed or adapted for these applications.
- Define a network or number of networks with appropriate upstream HP Distribution pipeline systems for a potential field trial that have different supply inputs. Establish suitable measurement locations ideally using existing infrastructure such as pressure regulator stations, district governors etc.
- Establish how energy will be attributed to the point of use if, as is likely, the measurement equipment is not actually at the customer’s premises.
Working with NGGD, establish the scope, cost, location, duration and potential benefits and risks of any field trial to be conducted under NIC.
- To review the current billing and measurement arrangements and recommend potential alternative arrangements that would not be a barrier to alternative gas supplies and is fair to consumers.
- Inform an NIC bid
- Production and agreement of a study proposing alternative billing arrangements for further investigation.
- The basis for work to be included in an NIC submission