ElectraLink is very excited to be hosting its first webinar, on the topic of unidentified gas. In advance of next week’s webinar, ElectraVibe conducted a short interview with Stephanie Catwell and Kishan Nundloll, Consultants at ElectraLink, to cut through the acronyms and to provide a heads-up as to what it is all about. The webinar will be hosted at noon on Thursday 26th April at midday. Email [email protected] if you would like to be added. Hope you can make it!
Vibe: What is the topic of this webinar?
SC: Since Project Nexus implementation in June 2017, a high level of scrutiny has been placed on the energy allocation process. Energy which has not been allocated is classed as Unidentified Gas (UIG). This energy volume fluctuates significantly on a daily basis in absolute percentage terms and for some parties this causes increased financial risk. The webinar will explain the issue of Unidentified Gas and set out our approach to finding a long term solution.
Vibe: Why is this a big issue?
KN: The fluctuation of UIG is set to continue for the foreseeable future unless a radical new approach is taken to qualify, quantify and evaluate energy volumes. Gas shippers and transporters continue to debate this issue and two Uniform Network Code (UNC) changes have been brought forward on the subject which are awaiting Ofgem direction. Both modifications are likely to receive a further impact assessment ahead of formal direction, which will delay a resolution.
Vibe: How is ElectraLink involved?
KN: At ElectraLink we manage the Supply Point Administration Agreement (SPAA) which includes management of the Theft Risk Assessment Service (TRAS). Theft is one of the contributory factors of UIG, and is therefore a significant industry issue. ElectraLink is committed to collaboration with other central bodies throughout transformation and change, to help manage issues effectively and appropriately, and will continue to liaise with the Joint Office of Gas Transporters to optimise the Apportionment of Unidentified Gas (AUGE) allocation process.
Vibe: Any industry developments we should know about?
SC: On Thursday 18th April the UNC Committee, responsible in part for managing the UNC is set to direct Xoserve on whether to amend the current arrangements. The AUGE process creates a table of weighting factors which are used to allocate the energy amongst parties. This provides an opportunity to re-evaluate and unify regulation across the gas market.
Vibe: What is the best outcome?
KN: ElectraLink strongly recommends root cause analysis taking place to identify and evaluate all the causes of UIG, using the most up-to-date statistics. We would also really like to see new governance implemented into the AUGE process, to remove any influence from political lobbying.
We welcome you to our webinar next Thursday 26th April, at noon, where we will expand on the issue of UIG our proposed solution.