XRN 5658
Allocation of LDZ UIG to Shippers Based on a Straight Throughput Method (Mod 0831) and Allocation of LDZ UIG to Shippers (Class 2, 3 and 4) Based on a Straight Throughput Method (Mod 0831A)

Summary

*Please note that Ofgem rejected Modification 0831 and 0831A on 06/02/2024, therefore XRN5658 has been withdrawn.*

This Change Proposal has been raised to deliver the requirements outlined in Modification 0831 ‘Allocation of LDZ UIG to Shippers Based on a Straight Throughput Method’ and Modification 0831A ‘Allocation of LDZ UIG to Shippers (Class 2, 3 and 4) Based on a Straight Throughput Method’.

Modification 0831 and Modification 0831A propose that the annual AUGE process and statement production will cease to exist and that the UIG weighting factor table will be permanently set with the same values every year.

The exact values that will be allocated to different EUCs and Class types will be determined by whether or not Modification 0831 or Modification 0831A is  approved by Ofgem.

Modification 0831 proposes:

• UIG weighting factors will be permanently set to 1 for ALL EUCs and Classes;
• All LDZ System Exit Points will have the allocation factor of 1;
• As a result, UIG will be allocated to all sites based on throughput.

Modification 0831A proposes:

• UIG weighting factors be permanently set to 1 for all Class 2, 3 and 4 SMPs;
• UIG weighting factors would be permanently set to 0 for all Class 1 SMPs, effectively exempting Class 1 SMPs from UIG allocation;
• As a result, UIG will be allocated to Class 2, 3 and 4 sites based on throughput and Class 1 sites will be excluded from UIG allocation.

It is proposed that the existing table within the system containing the Allocation Adjustment Factors (weighting / sharing factors) will remain in place and the process to upload the factors into Gemini will continue. Following implementation of either Modification 0831 / Modification 0831A, the table will remain the same every year, therefore the annual process of uploading the values of the table will simply refresh the data each year as a positive affirmation.

For the avoidance of doubt, this change will only amend the UIG allocation proportions and not the allocation mechanism.

Please note, Modifications’ 0831 and 0831A are subject to Authority Decision which means the decision on approval or rejection is with Ofgem. Please note only one Modification can be approved for implementation by Ofgem.

The timescales for a final decision on Modifications’ 0831 and 0831A are currently unknown.

For further details on the 0831 and 0831A proposals, please see the Modification documents which can be found here.