GMARG Meeting

Ashling Hotel, Thursday 20th August 2015

Today’s Agenda

1. Introduction

2. Review of Previous Minutes and Actions –16 July 2015

3. SMART Metering Update

4. GNI Presentation on Site Specific Corrections Factors

5. Post Code project

6. GNI Verbal Updates

7. CER Verbal Updates

8. Market Statistics (PAYG/GPRO)

9. Dates of Next GMARG Meetings and Conference Calls

10.A.O.B.

2

Action Number

Status Overview Responsible

G121 Open Data Processing Agreement. Latest version has been issued to industry GNI/Suppliers

G132 Open DDR 62 – tracking of siteworks complaints/escalations – process under the

trial is continuing

GNI/Suppliers

G 153 Open Vulnerable Customers/Special Services Register:

(i) Outstanding supplier reconciliation exercises to be completed

(ii) Supplier to review updated GNI paper

(iii) Definition of elderly to be reviewed

GNI GPRO

G 165 Open The key outstanding items on the schema release are as follows:

(i) GNI have issued draft MPD’s to industry to reflect the schema change.

Industry feedback welcome by 31 July. After this, GNI will upload the

revised versions on the website.

(ii) CER to approve Revenue Protection Processes captured in the schema.

CER to update at next GMARG

GNI Reg/Suppliers/CER

2. Review of Previous Minutes & Actions16 July 2015

3

Action Number

Status Overview Responsible

G 166 Open Application of lock moratorium to IC sites being considered by CER. Suppliers to

finalise their submission (through EAI)

CER/Suppliers

G 173 Open Suppliers to approve GNI proposal on misdirected payments GNI FAR/Suppliers

G 175 Open GNI to undertake high level impact assessment of postcodes GNI GPRO/IT

G 178 Open Annual AQ/SPC process: Suppliers to review and revert with any queries by early

August

GNI/Suppliers

G 179 New CER to discuss post code project with DCENR CER

4

2. Review of Previous Minutes & Actions16 July 2015 (continued)

3. SMART Metering Update (Verbal)

5

Item 4: Site Specific Correction Factors

GNI Presentation to GMARG

Agenda

• Overview of Site Specific Correction Factors

• Proposal

• Next Steps

• Appendices

7

SSCF – background

• Gas Networks Ireland conducted a review of the application of Site Specific Correction Factors at large NDM Gas

Points;

• Site Specific Conversion Factors (SSCF) apply to certain categories of NDM gas points that:

‒ Do not consume enough gas to warrant a volume corrector but

‒ Which should have a specific factor applied as opposed to a generic correction factor

• There is a requirement for a Site Specific Correction Factor ’SSCF’ to be applied to NDM Industrial & Commercial

sites which meet the following criteria:

‒ The Annual Quantity ‘AQ’ is greater or equal to 732,000 kWh and/or

‒ The Gas Point Running Pressure is greater than 25mbar; and

‒ Where Volume Conversion Devices are not in place.

• Policy approved by CER in 2006 as part of Market Opening developments

‒ Dealt with moving to new regime of Third Party Access and its impact on existing connections

‒ Policy also detailed how SSCF would be determined for new connections going forward

• The implementation of the existing SSCF Policy was reviewed recently together with the UK Methodology

8

Energy content of delivered gas depends on the number of molecules delivered and the energy content of the molecules:

Energy = Vactual x Volume Correction Factor x Energy Conversion Factor

9

SSCF requirement

Measured

volume at meterAdjustment factor based on pressure and

temperature of gas to derive a

standardised volume

Heat content of standardised

volume of gas, CV

Volume Correction Factors ensure accuracy of, and fairness, of billing between different off-takes.

For loads other than the largest with sophisticated volume correction devices but which exceed

732,000 kWh or which are supplied at higher than normal gas supply pressures Site Specific

Correction Factors are applied.

The SSCF to apply will be determined based on the following meter specific elements:

• meter gauge pressure

• altitude of the meter

• geographical supply area (one of ten areas)

• supply from medium pressure system

• meter location (inside/outside)

• temperature compensation applied (yes/no)

10

SSCF determination

All of these factors affect either the actual or expected

pressures/temperatures at the meter.

SSCF – Data required to determine accurate SSCFs

• Site specific locational data should be available from site visits and the Geographical

Information System (altitude)

• GNI Asset Operations carry out Function Checks at NDM Sites:

‒ All meters ≥G400 are function checked yearly.

‒ Medium Pressure ≥G100 – G250 are function checked every 2 years.

‒ Low Pressure ≥G100 – G250 are function checked every 3 years.

‒ All Modules ≥G20 – G65 are function checked every 5 years.

‒ As part of the I&C Meter Replacement Project & I&C Safety Surveys there is a function

check carried out.

• An outcome of this activity is that changes to Gas Point Running Pressure values

have been observed

11

• Many NDM Sites are availing of Gas Pressures greater than 25mbar

• This results in higher gas pressure at a number of NDM Sites which means that

such customers receive a benefit by consuming lower gas volumes as metered;

• For the same corrected volume the measured volume would be greater if operating

at a lower pressure

• These customers are receiving lower bills from their Shippers

• This is also having an impact on Distribution Shrinkage and currently being paid for

by all Distribution system users (possibly accounting for up to 10% of Distribution

UAG)

12

Outcome of Review

NDM I&C Population

• NDM Industrial & Commercial Gas Points with

Registered Shippers and customers

Category

With Volume

Conversion Devices

148

With Site Specific

Correction Factors

1,417

Others 23,128

Total 24,693

13

Site Visits – Gas Point Running Pressure

• To date Asset Operations have obtained Gas Point Running

Pressure measurements at 791 NDM I&C sites

• The outcome of this is as follows:

Category

Existing SSCF in place – continues to meet criteria 404

Eligible for SSCF 158

Existing SSCF in place – no longer eligible 229

Total 791

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• The remaining Gas Points are scheduled for site visits;

• Approximately 1,500 to 1,600 Gas Points in total are eligible

for SSCFs.

Number of sites Total AQ

(KWh’s)

Increase/

Decrease

(KWh’s)

% Average Increase/

Decrease per site

(KWh’s)

Under

Allocation 433 390,303,767 18,431,937 4.72% 42,568

No Change

(+/- 0.5%) 153 210,471,442 153,106 0.07% 1,000

Over

Allocation 205 101,975,215

-

1,230,039 -1.21% - 6,000

Overall791 702,441,750 17,355,004 2.47%

15

Analysis of 791 Sites – Under or Over Allocation kWh per Annum

Analysis of 791 Sites – Under or Over Allocation Euro Gas Value per Annum

Number of

Sites

Total Value

(€)

Average

Value per

site (€)

Range (€)

Under

allocation 433 €390,674 €902

€13 -

€12,000

No change

(+/- 0.5%) 153

Over

allocations 205 -€26,071 -€127

Up to €2,000

16

Unit Rate applied = Average SAP for 2014: € 0.02119549 per KWh

This relates to wholesale SAP price only. In practice the financial impact on the End User could

be three times this as the Shipper will be charging a retail price in the region of 6 cent/KWh

when you include transportation, fixed costs etc.

High Level Impact of SSCF Adjustments across 791 sites

Change Number

of Sites

Greater than 3%

Reduction 6

0.5 to 3% Reduction 199

No Change (+/- 0.5%) 153

0.5% to 3% Increase 364

Greater than 3% Increase 69

17

• NDM Metering

Tolerance in Code of

Operations is +/- 3%

0

50

100

150

200

250

300

350

400

Greater than 3%Reduction

0.5 to 3%Reduction

No Change (+/-0.5%)

0.5% to 3%Increase

Greater than 3%Increase

Impact of SSCF Changes

Existing New No SSCF

SSCF – Medium Term Impact

• The introduction of a new SSCF policy could see Distribution UAG (which is paid for by all customers reduce by as much as 10%)

‒ It is a fundamental part of the Distribution tariff regime

‒ Another solution would be to install more volume correctors but the costs totally outweigh the benefits (circa. €1,100 per site)

• More accurate and fairer application of metering for large NDM sites that do not justify the cost of a volume corrector

• More accurate and fairer application of metering for large NDM sites based on the Gas Point Running Pressure at the site

18

GNI Proposal

• GNI to use most recent Pressure values to calculate revised SSCFs.

• Revised SSCFs values to become applicable on 1st October, 2015.

• GNI are proposing not to apply retrospective adjustments to sites that do not

currently have a SSCF or to sites with revised values.

• GNI will cap any upward adjustments at 3% per annum (69 sites).

• GNI will apply retrospective adjustments to sites where over allocations of greater

than 3% have taken place (6 sites) – 1 year or to date of Pressure Reading which

ever is the longest – this will be provided via an AC Read.

19

• Certain customers will require retrospective rebates, processed through their

Registered Shipper;

• New SSCF factors applied from 01 October will see impacts on KWhs

registered at affected sites (some higher, some lower)

20

What does it mean for Shippers?

• Proposal to be considered by Shippers and feedback to be provided by

Friday, 4th September, 2015;

• Draft Procedure to be considered by Shippers and feedback to be provided

by Friday, 4th September;

• The Draft Procedure provides:

‒ Details of the SSCF Methodology;

‒ Proposes a Monthly Review Process;

• Revised SSCF values will be applied from 1st October, 2015

21

Next Steps

Appendices

• Energy = Metered Volume x Calorific Value x CV Zone Correction Factor x Gas

Point Correction Factor/ 3.6

• CV Zone Correction Factor = 1 for NDM Sites with a SSCF;

• Gas Point Correction Factor is not equal to 1 for NDM Sites with a SSCF;

• Gas Point Correction Factor = 1 for NDM Sites that do not meet the SSCF criteria;

• The CV Zone Correction Factor and Gas Point Correction Factor values are sent to

Shippers in any Market Message containing a Meter Read; e.g. M803N.

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Determining Energy Quantities for Invoicing Gas Consumption

24

SSCF Calculation

5. Post Code Project

• GNI Verbal update

25

Verbal Updates

6. GNI Verbal update

7. CER Verbal Update

26

8. Market Statistics (PAYG/GPRO)

27

July-15 PPM Review – Meter Installation Stats

Overview‒ Total consuming PPM Population 95,951 (as of 05/08/2015)‒ This represents 15.1% of the Total NDM Residential Population

This is a switch of 0.9% of the entire NDM population to PPM in past 12 months.‒ Gas-card Services are now available at >1,430 Payzone Outlets nationally.

Meter Installations ‒ 1,033 PPM Meter fits per month (based on 12 month rolling average)‒ PPM Installations are broken into 3 groups;

1) PPM Meter Fit (21) 2) Credit Meter to PPM Exchange (629) 3) PPM to PPM Exchange (183)‒ 78% of all PPM meter installations in July were new PPM installations, the remainder were PPM-PPM exchanges.‒ 833 PPM Meters were installed in July

Average new PPM fits per month over last 12 months = 650 meters.

Financial Hardship

‒ 63,426 Financial Hardship PPM meters have been installed since the project began in 2009.

567 Financial Hardship meters installed in July 2015.

30,250 Financial Hardship Meters have been installed under PC3 out of an allowance of 40,923.

‒ 68.1% of all meters fitted in the last 12 months were assigned Financial Hardship.

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PPM Financial Hardship Installations

29

Month

Total FH

Meters

Fitted

May-14 1144

Jun-14 796

Jul-14 843

Aug-14 717

Sep-14 781

Oct-14 603

Nov-14 474

Dec-14 369

Jan-15 439

Feb-15 577

Mar-15 650

Apr-15 570

May-15 615

Jun-15 563

Jul-15 567

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

3000

3200

3400

3600

3800

4000

% o

f M

ete

rs In

sta

lled

wit

h F

-H

No

of

Mete

rs F

itte

d

Financial Hardship Meters Fitted By Month

Meters Fitted with Financial Hardship

% of PPM Meter fits with FH YTD

% Meters Installed with Financial Hardship

PPM Meter Fit Type

30

Date of

Meter

Fit

PPM

Meter

Fit

PPM to

PPM

Exchan

ge

Credit

Meter

to PPM

Exchan

ge

Jul-14 29 242 892

Aug-14 22 281 774

Sep-14 41 287 839

Oct-14 79 394 644

Nov-14 34 526 541

Dec-14 38 506 414

Jan-15 37 607 488

Feb-15 22 486 629

Mar-15 28 406 692

Apr-15 14 238 652

May-15 41 219 678

Jun-15 22 274 615

Jul-15 21 183 629

0

500

1000

1500

2000

2500

3000

3500

4000

0

500

1000

1500

2000

2500

3000

PP

Ms In

sta

lled

by J

ob

Typ

e

To

tal N

o o

f M

ete

r In

sta

llati

on

s

PPM Meter Fits by Job Type

PPM Meter Fit

Total PPM Installed

PPM to PPM Exchange

Credit Meter to PPM Exchange

GPRO CoS monthly

CoS monthly Gas Year to dateMonth RD Credit RD PPM I/C Total GYTD

Oct-14 9,284 1,285 367 10,936 10,936

Nov-14 8,947 1,100 289 10,336 21,272

Dec-14 6,660 920 208 7,788 29,060

Jan-15 8,385 502 228 9,115 38,175

Feb-15 8,666 539 337 9,542 47,717

Mar-15 7,444 608 271 8,323 56,040

Apr-15 6,881 714 719 8,314 64,354

May-15 7,693 1,220 648 9,561 73,915

Jun-15 6,986 883 563 8,432 82,347

Jul-15 8,080 920 415 9,415 91,762

GYTD 79,026 8,691 4,04531

GPRO CoS Rejections

CoS rejectionsMonth Number Rejections vs

Successful CoSs

Oct-14 342 3.1%

Nov-14 388 3.8%

Dec-14 300 3.9%

Jan-15 293 3.2%

Feb-15 343 3.6%

Mar-15 366 4.4%

Apr-15 328 3.9%

May-15 343 3.6%

Jun-15 356 4.2%

Jul-15 424 4.5%

GYTD 3,483

32

GPRO Debt Flagging Stats

Debt Flagging in CoS

Total Debt

Flag

Received

Total CoS

Cancelled

% of Debt

Flags then

Cancelled

% Debt Flag

to CoS #'s

Oct-14 113 50 44.2% 1.0%

Nov-14 79 24 30.4% 0.8%

Dec-14 86 33 38.4% 1.1%

Jan-15 60 30 50.0% 0.7%

Feb-15 57 21 36.8% 0.6%

Mar-15 58 30 51.7% 0.7%

Apr-15 64 29 45.3% 0.8%

May-15 89 51 57.3% 0.9%

Jun-15 105 55 52.4% 1.2%

Jul-15 107 54 50.5% 1.1%

GYTD 818 377

33

GPRO Corrections and Amendments

Corrections and Amendments

Corrections Amendments Total C&A Total C&A

processed vs

Completed CoS

Oct-14 277 102 379 3.5%

Nov-14 231 123 354 3.4%

Dec-14 286 88 374 4.8%

Jan-15 225 62 287 3.1%

Feb-15 322 78 400 4.2%

Mar-15 352 78 430 5.2%

Apr-15 294 77 371 4.5%

May-15 319 46 365 3.8%

Jun-15 395 110 505 6.0%

Jul-15 383 109 492 5.2%

GYTD 3,084 873 3,957

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9. GMARG Meetings for 2015

Date (all 10am starts unless otherwise advised)

Location

17 Sept 2015 Conference Call *

15 Oct 2015 Dublin

19 Nov 2015 Conference Call *

17 Dec 2015 Dublin

* Conference Call slots subject to agreement at previous physical GMARG

35

10. AOB

36