Agency Charging Statement Overview of Consultation 11 th February 2008.
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Agency Charging Statement Agency Charging Statement Overview of Consultation Overview of Consultation 11 11 th th February 2008 February 2008
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What is the Agency Charging Statement? It is a document required by GT licence to be prepared jointly by the Gas Transporters and published on the agency’s website It is required to set out Scope of user pays services Listed in Appendix 1 of the draft Statement The methodology for deriving charges for user pays services Described in section 3 and Appendix 2 of the Statement The charges associated with such services Listed in Appendix 1 of the draft Statement Scope of core services Defined as Transporter Agency Activities that are not user pays services
Transcript of Agency Charging Statement Overview of Consultation 11 th February 2008.
Agency Charging StatementAgency Charging StatementOverview of ConsultationOverview of Consultation
1111thth February 2008 February 2008
Refresher
The Gas Distribution PCR proposed a core services plus user pays approach to the funding of xoserve
GTs’ allowed revenues (and transportation charges) have been reduced to allow for revenue collected through user pays charges
User pays will be treated as excluded services
User pays services are of two types: Code: Gas Transporter obligations contained in the UNC. Invoiced under the
UNC in the name of the Transporters Non Code: All other services. Invoiced under the Contract and Conditions for
non-code services in the name of xoserve
Changes are required to Transporter Licence, UNC and SPAA
Implementation date is 1st April 2008
What is the Agency Charging Statement?
It is a document required by GT licence to be prepared jointly by the Gas Transporters and published on the agency’s website
It is required to set out Scope of user pays services
Listed in Appendix 1 of the draft Statement The methodology for deriving charges for user pays services
Described in section 3 and Appendix 2 of the Statement The charges associated with such services
Listed in Appendix 1 of the draft Statement Scope of core services
Defined as Transporter Agency Activities that are not user pays services
Consultation on the New Statement
Transporters are required to
consult interested parties on the details of the statement
furnish Ofgem with a report setting out Any representations made and Any changes made in consequence of representations
The Gas Transporters will seek Ofgem’s approval for the Statement
Consultation Timetable
All documents were published on the 31/1/08 on the Joint Office website: Consultation paper giving the background to the Agency Charging Statement
and questions for consultation Draft Agency Charging Statement Contract, Conditions and Schedules for non code services
Responses to the consultation paper should be sent to [email protected] to arrive by close of play on 22nd February 2008.
Responses will be published unless you specifically ask them to remain confidential. All responses will be forwarded to Ofgem.
Report on consultation to Ofgem by 29th February 2008.
Questions
Questions on the content of the Consultation Paper or Draft Agency Charging Statement can be directed to the Gas Transporters or xoserve (contact details in paper)
Questions on the content of the non-code services Contract, Conditions or Schedules should be directed to [email protected]
Agency Charging StatementAgency Charging StatementCharging MethodologyCharging Methodology
1111thth February 2008 February 2008
Cost of Service Provision
GTs’ allowed revenues (and transportation charges) have been reduced by £3m (2005/06 prices)
Reduction is equivalent to £3.3m at (2008/09 prices)
The costs provided to Ofgem are based on 2006/07 actual costs, utilising the published activity cost basis methodology
The user pays regime has additional costs – operating and liabilities
However, cost reductions have been made since the original forecasts
Forecast revenue for user pays is £3.3m
Demand for Services
There is general recognition that demand will change from current levels
Demand forecasts have taken into account Feedback from Shippers Historical usage Impact of different charging levels Availability of alternative service providers
We have used mid-point estimates to derive charges
Future
GTs’ will have a licence condition for prices to reflect the costs in providing the service
GTs’ have committed to review prices within six months
GTs’ will be required to report on costs and revenues to Ofgem
user pays servicesuser pays servicesimplementationimplementation
February 2008February 2008
User Pays Non-Code services commercial arrangements
Conditions Service Schedules
ContractDocumentse.g. Service
Request Form
AgencyChargingStatement
User Pays Non-Code services contractual documents
xoserve
UserShipper Short Code
(SSC) levelOrganisation level
(many SSC)
Contract for the provision of Non-Code
User Pays services
The contract has “no value”, it allows Non-Code User Pays services to be requested and provided.
User Pays Non-Code services commercial arrangements
M NumberDVD
TelephoneService
EmailReports
PortfolioReports
AQ EnquiryService
ServiceRequestForm
ServiceRequestForm
ServiceRequestForm
ServiceRequest Form(EmailRequest)
IX file
User
IAD
ServiceRequestForm(IAD access)
User Pays Non Code Services contract signature arrangements
Discuss arrangements with all organisations – Feb Present contracts to Users for signature – Feb Receive signed contracts no later than14th March Maintain contracts thereafter
User Pays Non Code Services Service Request arrangements for 1st April
Users to consider extent of services required Service Request form available from 1st March (clause to
make it effective from 1st April) Service Request form submitted to xoserve no later than 14th
March for services required from 1st April New processes for management of IAD account creation and
deletion implemented from 1st March For IAD Accounts, xoserve will issue file of “live” IAD
accounts in early March (creations and deletions will be managed against this register)
xoserve contacts
User Pays User Group meetings:Tuesday 3rd JuneTuesday 23rd September
