Références, date, lieu Xoserve Service Model – Shipper’s View Total Gas and Power Ltd Gaz de...

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Références, date, lieu Xoserve Service Model – Shipper’s View Total Gas and Power Ltd Gaz de France ESS

Transcript of Références, date, lieu Xoserve Service Model – Shipper’s View Total Gas and Power Ltd Gaz de...

Page 1: Références, date, lieu Xoserve Service Model – Shipper’s View Total Gas and Power Ltd Gaz de France ESS.

Références, date, lieu

Xoserve Service Model – Shipper’s View

Total Gas and Power Ltd Gaz de France ESS

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Overview

Funding of Xoserve Services Baseline Services Volume Driven Services Commercial Request Services

Implications of Funding Changes.

Governance Models

Summary

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Current Funding of xoserve services

Baseline Services

Commercial Request Services

Very little differentiation in funding arrangements.

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Future Funding of xoserve services

Baseline Services

Volume Driven Services

Commercial Request Services

It is anticipated that any changes in xoserve funding arrangements would create a mixture of different charging systems

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Baseline Services

Those costs incurred by xoserve which cannot easily be varied or apportioned according to User requirements.

Infrastructure (buildings, computers, etc.) Support Staff (IT, HR, Finance) UK Link Communication Systems

Services provided to Transporters or Customers. Desc Activities. Provision of Meter Point Serial Number Change Management

These services would continue to be funded through the allowed price control revenue, as Transporters would still have the incentive to control costs.

Does not preclude differing apportionment of costs between Transporters

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Volume Driven Services

Mandatory User Services that the Transporter’s agent is required to provide, but the source of cost can be clearly identified.

Supply Point Nominations. Use of Supply Point Register. Supply Point Ratchets

Currently have such a process for limited numbers of other UNC activities (Must Reads).

Attempts would be made to identify the costs that are incurred in providing these services; these would then be recovered from those that incur them in proportion.

For simplicity, charges do not necessarily have to meet all costs for that service but should attempt to target some costs at the orginator.

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Volume Driven Services – Implementation and Operation.

Case Study - Supply Point Nomination/Confirmation Process. Transporter must validate Shippers Nomination and either submit a Supply Point

offer to the User within Two Business Days or reject Nomination. Responding to Supply Point Offer, Shipper must present a Supply Point

Registration date at least 15 business days after submission. Restrictions due to system capacity.

At present anyone who wishes to have a quicker turnaround must either raise modification to adjust system for all Users.

As new timescales would apply to all, very unlikely anyone would use longer timescales.

Separating out costs for an individual Supply Point Confirmation Process will allow variation in service according to User needs

Reduce registration date to 10 business days Allow multiple confirmations on different dates to become live simultaneously.

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Commercial Request Services

Services which are not mandatory. Adhoc Data Requests Possibly iGT incorporation

In theory such services can be contracted for via a bilateral agreement or a UK Link class 3 change.

In reality such services have been very difficult to set-up and charges may not be efficently incurred.

Creation of set criteria with visibilty to Shippers to allow efficient cost-setting

Increase in the transparency of such services will allow multiple Users to use such a service and reduce costs.

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Funding Changes Implications

Will always have a mixture of classifications.

What is covered by which classification is a key question that needs to be decided equitably.

Shippers will need to have input on cost-setting and definitions.

Changes to governance will need to be made to give transparency of cost-setting.

May adjust decisions on important changes to industry regime.

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System cost projections - Requirement to include foreseeable industry developments to inform worthiness decisions

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011

Core systems

AMR Cost

AMR Benefit

XX ?

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Preferred Governance Models

Model Key Benefits

User Pays Model A User Pays Model B

Baseline Services

GTs have service level obligations under UNC

Ensures all stakeholders in the loop

Increased risks between GTs and Agent

Shippers do not have direct recourse under UNC

Volume Driven &

Commercial Service

No value added by GTs involvement

Potential for increased delay or reduced service levels

Shipper to Agent direct relationship means better service level and increased leverage for shippers

X

X

As there will be a mixture of service classifications, governance will need to recognise that.

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User Pays – Model A

GTs

xoserve

User

ASACharges Service Request

ServiceProvision

Payments

Invoice

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User Model B

GTs

xoserve

User

ASA

Request andProvide Service (via UNC or commercial service)

Invoice andPay for Service

User board

Charge Definitions

Information on Cost of Service

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Summary

Xoserve replacement service presents unique opportunity to change Transporter Agent regime

Meaningful differentiation of services can only occur when specific services are itemised.

Cost reflectivity will also drive through efficient use of the Transporter Agent.

Transparency and Shipper oversight will need to be improved to allow a robust process.

Consideration needs to be given to both Transporter and Shipper needs.