Is it a bird? Is it a plane? No… it’s TGP’s UIG!
Breaking News - Unidentified Gas (UIG) Changes following Project Nexus implementation
Total Gas & Power are helping to guide the industry on the issue of Unidentified Gas by leading on changes to the Uniform Network Code (UNC).
Our urgent UNC modification 0658 (to identify and develop improvements to LDZ settlement processes) has been implemented by Ofgem following widespread support from the industry, enabling Xoserve to set up a ‘UIG Taskforce’. This modification was recommended for implementation by the UNC modification panel and subsequently implemented by Ofgem on 6th July 2018.
The change will provide funding for Xoserve to properly assess the issues as the central industry expert. It will enable Xoserve to take control and lead rather than rely on instructions from various industry committees. It will also allow Xoserve to ring-fence experts within the team and recommend actions to correct the causes.
You can read more about it here - https://www.gasgovernance.co.uk
Background to Project Nexus and Unidentified Gas (UIG)
Project Nexus was a large UK Gas industry project implemented in June 2017, replacing key IT systems for gas settlement and supply point administration in the gas industry and changes the way that the gas settlement is handled.
One of the significant consequential changes was the replacement of the Unallocated Gas (UAG) process with an Unidentified Gas (UIG) process.
The new UIG process was designed with the intention of providing a more accurate view of the volume of unidentified gas. Before Project Nexus implementation, an independent expert (the AUGE) calculated, in advance, the volume of unidentified gas for the non-domestic sector using available information. This was then charged out to suppliers in accordance with market share by volume.
Since Nexus implementation the total amount of unidentified gas is derived on a daily basis from a formula that subtracts shrinkage, Daily Metered (DM) allocations and Non-Daily Metered (NDM) estimates from the total gas input into the system. The amount of gas that is then “missing” is the Unidentified Gas (UIG) volume.
However, the daily UIG figures since 1 June 2017 have generally been in excess of the previous accustomed 1% and have shown considerable volatility (UIG can be a positive or negative value). This unpredictability makes it difficult for gas shippers to determine how much gas they should purchase in order to balance their daily positions. The issue is compounded by uncertainty over how much of the variance between allocated gas and actual consumption will be resolved through subsequent reconciliation, and when this will occur.
UNC658 proposes that Xoserve as the Central Date Services Provider (CDSP) be given a mandate to assign resources to investigate the root causes and influencers of UIG, with a target of reducing its volatility and scale and developing a robust predictive model for daily UIG for use by all parties.
Go to our website for more information - https://www.gas-power.total.co.uk/information-centre/regulatory-information/unidentified-gas-uig-changes-following-project-nexus
