Understanding Annual Quantity (AQ)
- AQ is the estimated consumption of a meter point using consumption history from the previous 12 months
- An AQ is calculated for all Supply Meter Points
- The Supply Point Offtake Quantity (SOQ) for Class 3 and 4 meter points is derived from the AQ
- The AQ revision process is carried out monthly however a revised AQ is only calculated following receipt of a valid read. Where a valid read is not received, the previous months AQ is carried forward and this will continue until a valid read is received
- AQs are calculated using the following (not inclusive) data items provided by Shippers;
- Consumption/energy calculated from meter readings
- Asset data
- Methodology for AQ calculation is described in Uniform Network Code TPD Section H2
The AQ Task Force
Due to the number and frequency of issues impacting AQ values, and with recognition of the commercial impact these issues create for our customers, we have taken the decision to mobilise a taskforce dedicated to resolving the underlying issues which lead to these errors.
Our AQ Task Force will investigate and making recommendations on how to reduce AQ related issues; reduce the volume of AQ defects; identify root cause and successfully deliver on agreed improvements.
Below are links to all updates shared with customers and industry colleagues regarding Task Force publications.
What is the issue?
We have experienced a significant number of functional defects within UK Link causing incorrect Annual Quantity (AQ) values being calculated, this can result in overstated or understated AQs along with the additional impacts stated below. We also recognise that operational reports issued to our customers containing AQ and SOQ will also be incorrect where affected MPRNs are provided in the reports.
What has Xoserve done to correct this?
In August 2019, we recognised that there were an unacceptable number of defects impacting the AQ. A team was set up to focus on the resolution of the known defects and to minimise the impact on 1st December snapshot of the Formula Year AQ (FYAQ) and subsequently a dedicated AQ taskforce has been established.
The taskforce includes both business and functional experts and is being led by Denis Regan, Market Architect, who has knowledge and experience in both technical operations, change delivery and more recently the Class 3 Taskforce.
Since August 2019 we have deployed fixes for 47 defects, corrected the data and re-calculated the AQ for circa 850,000 MPRNs.
Positively the number of new defects being identified is decreasing as a result of focussed attention, improved analysis and root cause assessment. Additionally, overall improvements to the defect Management Process is also improving our resolution rates.
What do we know?
Our experience of dealing with AQ defects has shown us that there are multiple ‘triggers’ where AQ can be impacted. The taskforce is seeking to determine for each of the sub-process below whether the cause is system related, industry behaviour or gaps in business rules. What we do know is that the resolution to this issue will require a multitude of solutions.
* Data as of 12th July 2020
Current & Next Steps
We are continuing to tackle live defects by providing enduring fixes as well continued engagement with impacted customers on AQ positions and any financial adjustments required.
We are working closely with our IT service partners to undertake a detailed root cause report of all historic defects to drive recommendation improvements and this is targeted for the end of July 2020.
We have already developed and enhanced our operational reporting to support the operational teams in identifying discrepancies, as well as providing greater assurance to the process. We anticipate that there will be additional reporting requirements as the root cause report is delivered.
We are currently undertaking a significant analysis exercise to re-assess the internal processes used to ensure that all necessary financial adjustments post defect fix/AQ correction have been completed. This has identified that there is c. 120,000 MPRNs that could be eligible for capacity adjustments. Our investigations continue, and we will provide updates to the appropriate user communities and forums over the month of July.
The Annual Quantity Taskforce will provide a monthly update at DSC committees; Contract Management Committee (CoMC) and Design Sub Group (DSG), the material presented will also be published on our website following the meeting.
Download the latest Annual Quantity (AQ) Issue Register below. The register holds all AQ defect information
Latest AQ Issue RegisterLast updated on 24 Nov 2020
Education and Training
To aid greater awareness of the AQ process please utilise the attached resources:
Find out more information on the latest financial adjustments.
AQ Financial Adjustments Q&A v1.0
AQ Financial Adjustments Q&A v1.0Last updated on 28 Oct 2020
Adjustments MethodologyLast updated on 28 Oct 2020
Adjustment PrinciplesLast updated on 28 Oct 2020
The following links provide the latest updates on the AQ Taskforce:
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce October 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce September 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce August 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce July 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce June 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce May 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce April 2020
- Joint Office of Gas Transporters – DSC Contract Management Committee AQ Taskforce March 2020
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