XRN 5286
Clarificatory change to the AQ amendment process to be applied retrospectively (Modification 0746)

Summary

Closed following Ofgem Decision. 

Modification 746 has been raised to clarify the circumstances in which specific AQ Corrections can be made and to apply this clarification from the 1 April 2020. Therefore, this Change Proposal has been raised to deliver the changes required as set out within this Mod 746.

Please note, that this Modification was previously ‘736A’, an alternate to Modification 736 before both Modifications were decoupled.

This change seeks to seeks to clarify that where a User is affiliated to the previously Registered User, they cannot utilise ‘Reason Code 3’ to submit an AQ correction. Reason Code 3 is “the commencement of a new business activity or discontinuance of an existing business activity at the consumer's premises”.

If Modification 0736 is approved and implemented, Users will not be allowed to utilise this reason code when completing an AQ correction where the relevant Supply Point has moved between Users in the same organisation group (where they are affiliated). Modification 0746 looks to apply these rules retrospectively from 01 April 2020 in order to remedy any situation where this has taken place previously. At a high level, to apply this logic retrospectively, the CDSP will be required to identify all AQ corrections submitted using reason code 3 from 01 April 2020 to the implementation date of Modification 0736. For any of these sites, where the Shipper cannot evidence the AQ correction was valid (they are/were not affiliated to the previous User), the AQ correction would have to be reversed and the associated charges applied.

Due to the nature of the change (being retrospective) and a quick implementation following approval anticipated, we are expecting a predominantly manual solution.