Issue 14
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The Issue is now closed.Summary
Issue 14 considered the Settlement treatment of unoccupied sites and “shut down” Meters.
If a site is long term unoccupied and the Metering System has not been de-energised, the volume of energy allocated to the Supplier will be calculated using the latest Estimated Annual Consumption (EAC). When the Non Half Hourly Data Collector (NHHDC) gains access to the site and records a Meter reading, an Annualised Advance (AA) can be calculated which will reflect the true consumption on site.
However, in many cases NHHDCs are unable to gain access to unoccupied sites. Additionally, the EAC associated with the site is unlikely to be zero which is the most probable actual consumption value. This results in the energy volumes attributable to the Supplier in Settlement being overstated and inequitable.
This view is substantiated by the review of Annual Demand Ratios analysis undertaken by Elexon , suggesting that there is an overstatement of energy at Metering System level. It is a fair conclusion that some long term vacant sites settled on non-zero EACs are contributing to the general over-accounting of energy.
Prepayment Meters can be placed in a shut down mode by Meter Operator Agents (MOAs) when the site is considered to be vacant and not consuming energy but de-energising the Meter from source is not preferred. Shutting down a Meter involves opening a contact within the Meter to prevent the flow of energy through it to the premises. EACs are still submitted into Settlement for the site even though the consumption is zero. It was considered that a similar solution to that for long term vacant sites may be appropriate for shut down Meters.
Progression
This issue was originally raised in a paper presented to the Supplier Volume Allocation Group (SVG) committee by Powergen Retail that provided background information and a proposed solution.
The Volume Allocation Standing Modification Group (VASMG) briefly considered the issue in the context of Modification P176 “Clarification of the Requirements for Estimation/Deeming of Meter Readings/Advances in Certain Circumstances to Facilitate Correction of Anomalies in Settlement Consumption” (P176), but agreed to exclude this from the P176 package on the basis that the issue and solution options (not necessarily involving deeming) required further discussion, were being considered by Elexon, and could be raised as a separate BSC Standing Issue. The solution proposed by Powergen entailed deeming by Suppliers; an alternative approach could be deeming by the NHHDC based on attempts to gain access and intelligence gained from the Supplier.
Elexon therefore presented a discussion paper to the SVG in March 2005. This paper contained further information about the overstatement of energy in Settlements caused by this issue, the differences in the scale of the problem experienced by Suppliers in the market prior to 1998
The Issue 14 Final Report was presented to the Panel on 07 October 2005. The Issue is now closed.