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

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transportation charges. The charges reflect these requirements, with the Transporter remaining cash neutralin the process.1.1.8 Isolations and DisconnectionsWhere a shipper has left a Supply Meter physically connected to the Transporter's network following a UNCIsolation and Withdrawal, 12 months after the effective Withdrawal, the Transporter must take action todisable the flow of gas where the shipper has not undertaken a physical disconnection of the meter. TheTransporter is permitted to pass the costs incurred in undertaking the work to the last Registered User. TheTransporter will calculate the charge to the shipper on a fully absorbed time and materials basis, consistentwith the charging principles set out in the Transporter's Connections Charging Methodology Statement.1.1.9. Relationship of Charges to Price Control Maximum Allowed RevenueFollowing determination of the price control for Formula Years 2008/9 to 2012/13, it was estimated that theMaximum Allowed Revenue (MAR) for Wales & West Network for 2012/13 is £353.3m.The transportation charges in place prior to April 2012 were estimated to recover £336.6m for FY 2012/13.Inorder to bring charges into line with the Maximum Allowed Revenue, charges were increased by 5.0% from1 st April 2012. The increase of 5.0% allows for a reduction of 3.0% in capacity income between 1 st October2012 and 31 st March 2013 resulting from an expected fall in SOQs following the AQ review effective from 1 stOctober 2012. Forecast under/over recovery (K) against MAR at 31st March 2013 is estimated to be zero.From 1st April 2012, the distribution transportation charges in respect of a typical domestic load consuming16,000 kWh/annum, was estimated to be £140.16 per annum excl. VAT.1.2 LDZ System ChargesThe standard LDZ system charges comprise capacity and commodity charges, with separate functions fordirectly connected supply points and for Connected System Exit Points (CSEPs).Where the LDZ charges are based on functions, these functions use supply point Offtake Quantity (SOQ) inthe determination of the charges. At Daily Metered (DM) firm supply points the SOQ is the registered supplypoint capacity. For Non-Daily metered (NDM) supply points, the SOQ is calculated using the supply pointEnd User Category (EUC) and the appropriate load factor.1.2.1 Directly Connected Supply PointsThe unit charges and charging functions used to calculate charges to directly connected supply points areset out in Table 1.2.1 below.Table 1.2.1 Directly connected supply pointsInvoice ChargeLDZ CapacityCode ZCALDZ Commodity ZCOLDZ Charges Capacity CommodityPence per pk day kWh Pence Commodity per kWhUp to 73,200 kWh per annumper day Pence per Kwh0.1647 0.027273,200 to 732,000 kWh per annum 0.1429 0.0236732,000 kWh per annum and above 1.2793 x SOQ ^ -0.2513 0.2750 x SOQ ^ -0.2775Subject to a minimum rate of 0.0121 0.0019Minimum reached at SOQ of 107,786,664 58,320,905WWU Oct 11 Statement of Charges Page 4 of 26
1.2.2 Connected SystemsIn the calculation of the LDZ charges payable, the unit commodity and capacity charges are based on thesupply point capacity equal to the CSEP peak day load for the completed development irrespective of theactual stage of development. The SOQ used is therefore the estimated SOQ for the completed developmentas provided in the appropriate Network Exit Agreement (NExA). For any particular CSEP, each shipper willpay identical LDZ unit charges regardless of the proportion of gas shipped. Reference needs to be made tothe relevant NExA or CSEP ancillary agreement to determine the completed supply point capacity.Table 1.2.2 Connected Systems (CSEPs)InvoiceCharge CodeADC Capacity 891ADCCommodity893ADC ChargesCSEP CapacityCSEP CommodityUp to 73,200 kWh per annumPence per pk day kWh per0.1647 dayPence per kWhPence 0.0272 per Kwh73,200 to 732,000 kWh per annum 0.1429 0.0243 0.0236732,000 kWh per annum and above 1.2793 x SOQ ^ -0.2513 0.02260.2750 x SOQ ^ -0.2775Subject to a minimum rate of 0.0121 0.0019Minimum reached at SOQ of 107,786,664 58,320.9051.2.3 Optional LDZ ChargeThe optional LDZ tariff is available, as a single charge, as an alternative to the standard LDZ systemcharges. This tariff may be attractive to large loads located close to the NTS. The rationale for the optionaltariff is that, for large Network loads located close to the NTS or for potential new Network loads in a similarsituation, the standard LDZ tariff can appear to give perverse economic incentives for the construction ofnew pipelines when Network connections are already available. This could result in an inefficient outcomefor all system users.The charge is calculated using the function below:InvoiceCharge CodeADU 881Pence per peak day kWh per day902 x [(SOQ)^-0.834 ] x D + 772 x (SOQ) ^-0.717Where: (SOQ) is the Registered Supply Point Capacity, or other appropriate measure, in kWh per day and Dis the direct distance, in km, from the site boundary to the nearest point on the NTS. Note that ^ means “tothe power of”. Further information on the optional tariff can be obtained from the Transporter’s Pricingteam on 02920 278838.WWU Oct 11 Statement of Charges Page 5 of 26
Page 1 and 2: Wales & West UtilitiesStatement ofL
Page 3: LDZ TRANSPORTATION CHARGES TO APPLY
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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