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“Daily Meter Reading - Impacts of the Review of Gas Metering Arrangements (RGMA)”:

30 Mar 2004 00:00:00

“Daily Meter Reading - Impacts of the Review of Gas Metering Arrangements (RGMA)”:

Network Code Modification Proposal 0674

This modification forms one of seven that has been put forward relating to the Review of Gas Metering Arrangements (RGMA), with the modification of the Network Code having been seen as necessary in order to incorporate those changes seen as necessary in order to facilitate the maintenance of the current Daily Read Metering regime in a liberalised metering market.

The purpose of the modification is to ensure that the Network Code’s Daily Metering regime is more reflective of a liberalised metering market and is consistent with the RGMA programme, and more specifically that Transco’s Network Code obligations pertaining to the procurement of Daily Read data and the subsequent provision of this data to Users.

If the proposed modification - which is supported by Transco - is not implemented, Transco have indicated that their ability to obtain DM readings as a means of fulfilling its Network Code obligations may be adversely affected by an inability for it to attach and maintain the relevant Daily Read equipment.

Under the present arrangements, the Network Code requires Transco to provide Users with meter readings on Daily Metered (DM) supply points - although Ofgem has previously proposed that the Network Code be modified in order to allow Users to choose a third-party DM meter reading service provider. With the establishment of the Supply Point & Billing Workstream in December 2000, the body sought to determine the future format of the Daily Read regime and also any Code modifications that might facilitate its development.

Indeed, although the body concluded that the current regime be maintained, it noted that the existing structure be altered to reflect the fact third party ownership of meters and also that Transco continue to be able to obtain daily meter readings. A further recommendation of the DM unbundling sub-group was that the existing DM pricing structure and price controls be altered to reflect the fact that data obtained as part of the Daily Read Requirement is primarily used for transportation purposes. Specifically, the relevant costs should be recovered through transportation charges rather than the existing Metering and Meter Reading charges, and that DM shippers should only be liable for those costs associated with Transco making meter reads available to them. Ofgem subsequently advised Transco that it is not minded to reassign DM meter related revenues from the relevant price controls to the LDZ form of control, and - as such - no changes to the existing DM pricing arrangements have been proposed.

Although Transco would be required to make changes to the UK-LINK system as a consequence of this modification, Users systems would probably be unaltered - although it does anticipate changes to Users’ administrative processes and procedures.

Of the four representations submitted in respect of the modification, three were supportive and one did not express a view.

The proposal has been passed to Ofgem for their review and consideration.

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