Draft Modification Proposal:Population and Maintenance of Market Sector Code within Sites & MetersSimon Trivella –25th February 2010

Distribution Workstream

UPDA

TE

Background – Market Sector Code (MSC)

• Field within Sites and Meters

• Can hold the following values:

– “D” for domestic

– “I” for Industrial & Commercial

• Population is Mandatory on Confirmations (since 2001)

• Can be updated using bespoke file (T73)

Background – Market Sector Code (MSC)

• Blank population (as of 27th July 2009)

– Approximately 7,000,000 (~33% of all Supply Points)

– Blank population is reducing slowly (<0.5% per month)

• Extensive analysis presented

– Market Differentiation on 4th August 2009

Background – Market Sector Code (MSC)

• References to “domestic” and “non-domestic”

– The Gas Act

– Gas Transporter Licence (various conditions)

– Gas Supplier Licence (various conditions)

– Gas Shipper Licence (various conditions)

– The Gas (Standards of Performance) Regulations 2005 & A2008

– Uniform Network Code (TPD G & TPD J)

Background – Market Sector Code (MSC)

• References to “domestic” and “non-domestic”

– The Gas and Electricity (Consumer Complaints Handling Standards) Regulations 2008

– The Consumers, Estates Agents and Redress Act 2007

• Complaint Handling Standards 2008

– The Electricity & Gas Carbon Emissions Reduction Order 2008

– The Supply Point Administration Agreement (SPAA)

• Detailed summary presented at Workstream (10th Sept 09)

Issues

• “Gap” in Supplier/Shipper Licence provisions

– Condition 17 (Mandatory exchange of information)

• 17.9 Requirement to inform Shipper if premise is domestic or non-domestic within 3 days of becoming relevant Supplier

• 17.10 Requirement to inform Shipper if premise changes from domestic to non-domestic and vice versa

• 17.11 For the above, if the Supplier is the Shipper then the Supplier must inform the relevant Transporter

Issues

• “Gap” in Supplier/Shipper Licence provisions

– No corresponding Shipper obligation to inform Transporter when they are not also the Supplier

– Obligation is not retrospective

• Does not impact on blank MSC data

Issues

• No UNC requirement for accuracy or maintenance

– MSC only has to be populated at confirmation stage

• Compliance (Regs, UNC etc)

• Inability to report on ‘market sectors’

• Restricts industry development?

– Modification Proposal 0253 / Data Protection Act

– Ability for greater Market Differentiation

Proposal

• UNC obligation on Shippers

– Population of Market Sector Code flag

– Accuracy of submitted Market Sector Code flag

– Maintenance of Market Sector Code flag

Proposal

• Implementation

– Blank MSC flags to be populated

– Incorrect MSC flags to be corrected

– Transition period needed?

• Potential for 7,000,000 T73 files or Confirmations

• Potential “data-fix” approach

• Shipper input required

– Non User Pays (subject to Implementation technique)

Proposal Update

• Transition Period of [6] months

• T73 files to be used in transition period

– Limit to be placed on file size (tbc)

• Shippers obligated to:

– Update incorrect MSC entries; and

– Populate any “D” LSPs and/or any “I” SSPs

Proposal Update

• Blank MSC Shipper portfolio report

– Prior to transition period (at implementation)

– [3] months / halfway in to transition period

– 1 month from end of transition period

• “Suspect” MSC entry report (if required)

– Existing potential anomalies flagged to Shipper

– Provided prior to transition period

Proposal Update

• After Transition Period

– All populated entries correct (Shipper obligation)

– Blanks can only be “D” SSPs or “I” LSPs (Shipper obligation)

• Remaining blanks to be populated by xoserve

– SSPs will be “D” and LSPs will be “I”

• User Pays Service and User Pays Charges apply

• Development/Implementation/Service costs

– Payable based on Shipper’s blank MSC population

Proposal Update

• Charging Example 1

– Indicative costs of [£150k] (tbc within Modification Proposal)

– 7,000,000 blank MSCs

– £0.02 per blank MSC update

• Charging Example 2

– 150,000 blank MSCs

– £1.00 per blank MSC update

Next Steps

• Draft Modification Proposal to be published

– Shipper feedback on Proposal (incl. Implementation)

– March Modification Panel

• Consultation

Draft Modification Proposal:Population and Maintenance of Market Sector Code within Sites & MetersSimon Trivella –25th February 2010

Distribution Workstream

UPDA

TE