Gas Industry Co is currently undertaking the second phase (Phase II) of a policy review of the Rules which began in 2010. Phase II is concerned with identifying options to either improve the accuracy of the initial allocation or replace it with an alternative. Options currently under investigation (which will form the basis of an options paper in due course) are:
- D+1: a system which would provide shippers with daily allocated quantities, at a transmission pipeline level, on the day after gas has flowed.
- An alternative allocation algorithm: no change to the timing of allocations, but the Allocation Agent would use a different allocation methodology, for example, a top-down algorithm or the removal of the application of the annual UFG factor at interim and final stages.
- Balancing and Peaking Pool (BPP) wash-ups: BPP charges are revisited when interim and/or final allocation results are published.
- Early publication of SADSV: retailers use the residual profile values for the consumption period to profile customer's read-to-read volumes into consumption submissions.
D+1: Allocation the day after gas flow
In March 2015, Gas Industry Co held a workshop with retailers to present a D+1 model developed by Concept Consulting. This model uses regression analysis to allocate the previous day's gas consumption to shippers based on past consumption patterns. Gas Industry Co proposes to use this model as the basis for a trial of D+1 allocation. The trial would be a low-cost way of determining whether D+1 would be worthwhile to implement as part of the Rules; and, if so, of refining the methodology and processes used.