WWU Statement of LDZ Transportation Charges to ... - Our Home Page

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CONTENTS1. LDZ TRANSPORTATION CHARGES TO APPLY FROM 1 st APRIL 20121.1 Introduction 31.2 LDZ System Charges 41.3 LDZ Customer Charges 61.4 Other Charges 71.5 Examples 82. APPENDICESAPPENDIX 2A 113. APPLICATION OF THE LDZ CHARGES METHODOLOGY3.1 Introduction 153.2 System Charges Methodology 173.3 LDZ and Other Charges Methodology 22WWU Oct 11 Statement of Charges Page 2 of 26
LDZ TRANSPORTATION CHARGES TO APPLY FROM 1 APRIL 20121.1. IntroductionThis publication sets out the LDZ transportation charges which will apply from 1 April 2012 for the use of theWales & West Distribution Network (DN), as required by Standard Special Condition A4 of the GasTransporter Licence. This document does not override or vary any of the statutory, licence or UniformNetwork Code obligations upon Wales & West Utilities.For more information on the charges set out below, contact the Transporter’s Pricing team on 02920 278838.1.1.1. Uniform Network CodeThe Uniform Network Code is supported by an integrated set of computer systems called UK Link. Thecharges and formulae in this booklet will be used in the calculation of charges within UK Link, which aredefinitive for billing purposes.There are a number of areas of the Uniform Network Code that impact upon the cost to Shippers of using thetransportation network, such as imbalance charges, scheduling charges, capacity over-runs and ratchets,top-up neutrality charges and contractual liability. The Uniform Network Code and related documents can befound on the Joint Office of Gas Transporters website (www.gasgovernance.co.uk)1.1.2. UnitsCommodity charges are expressed and billed in pence per kilowatt hour (kWh).Capacity charges are expressed and billed in pence per peak day kilowatt hour per day.Fixed charges are expressed and billed in pence per day.1.1.3. InvoicingThe Xoserve Invoicing team produce and issue the invoices that are derived from the transportation chargesshown within this publication. To clarify this link between pricing and invoicing, charge codes and invoicenames are included in the tables.For more information on invoicing, please contact Xoserve, the invoicing service provider, via e-mail atcss.billing@xoserve.com.1.1.4. The distribution price control formulaDistribution charges are derived in relation to a price control formula set by Ofgem, the gas and electricitymarket regulator, for the transportation of gas. This formula dictates the maximum revenue that can beearned from the transportation of gas. Should the DN operator earn more or less than the maximumpermitted revenue in any formula year, a compensating adjustment is made in the following year. Under therevised Licences the normal date for changing any of the charges will be 1 April.Within the Network price control revenue recovery is split between LDZ system charges and LDZ customercharges. The relative level of these charges is based on the relative level of costs of these areas of activity.1.1.5. Firm transportationAll Network transportation charges are based on Firm supply only and comprise LDZ capacity andcommodity charges plus LDZ customer charges.1.1.6 Theft of gasThe licensing regime places incentives on Transporters, Shippers and Suppliers to take action in respect ofsuspected theft of gas. Certain costs associated with individual cases of theft are recovered throughWWU Oct 11 Statement of Charges Page 3 of 26
Page 1: Wales & West UtilitiesStatement ofL
Page 5: 1.2.2 Connected SystemsIn the calcu
Page 8 and 9: 1.5 ExamplesNotes1. Charges produce
Page 10 and 11: Example 3Suppose that instead of su
Page 12 and 13: Supply points with annual consumpti
Page 14 and 15: Table 2A.3 Large NDM Supply Points
Page 16 and 17: 3.1.3 Structure of ChargesThe struc
Page 18 and 19: determine the commodity charge func
Page 20 and 21: 3.2.6 Cost per Unit of Capacity Uti
Page 22: 3.3 LDZ Customer and Other Charges

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