XRN 5851
Modification 0868 Change to the current Allocation of Unidentified Gas Statement Frequency and Scope

Modification 0868 has three main objectives.

Objective 1:

To change the requirement for an Allocation of Unidentified Gas Statement and Table from being published annually to every three years.

The Uniform Network Code will be updated to amend the defined term ‘AUG Year’ to ‘AUG Period’. The new ‘AUG Period’ will still begin on the 1^st October of Year 1 of the ‘AUG Period’ and will complete on the 30^th September of Year 3 of the ‘AUG Period’.

Pre-work activities (which run from the 31^st May until 30^th September) will still be required prior to the 1^st October of Year 1 of the new ‘AUG Period’. This element of the process remains unchanged.

In order for Mod 0868 to complete the Governance process and be issued to Ofgem for a final decision, it is anticipated that the pre-work activities in the first iteration of the new ‘AUG Period’ will be shorter or amalgamated into Year 1. This will allow time for CDSP to conduct a regulated procurement exercise against the scope of Mod 0868 to secure a new AUG Expert who is anticipated to be in place by June/July 2025.

Objective 2:

To replace the existing Innovation and Advisory Services with new AUG Value-Add Activities.

AUG Value-Add Activities will fall into three areas:

i)               Market Engagement

ii)              Discovery Services

iii)             UIG Reduction Initiatives

For an AUG Value-Add Activity to be progressed, the AUG Expert must:

i)               Provide an Initial Proposal which the AUG Sub-Committee can approve or disapprove. (Recourse to UNCC for appeal of Sub-Committee decision). Approved Initial Proposals can be developed into Final Proposals.

ii)              Provide a Final Proposal to the AUG Sub-Committee for recommendation.

iii)             Provide a Final Proposal along with AUG Sub-Committee recommendation to UNCC for final decision.

UNCC can approve or disapprove the Final Proposal. (There is no recourse to appeal this decision).

Please note that the DSC Change Management Committee will be required to pre-approve a Value-Add Activity budget for the ‘AUG Period’. It is expected that this budget will do two things:

i)               Specify a limit for how much can be spent on an individual Value-Add Activity.

ii)              Specify an overall limit for funds available for all Value-Add Activities conducted by the AUG Expert during one ‘AUG period’.

If the UNCC approve an AUG Value-Add Activity Final Proposal which exceeds the individual or overall limit set by ChMc, then the DSC Change Management Committee will be required to reconvene and vote on whether to release further funds for the approved Value-Add Activity.

If the DSC Change Management Committee choose not to approve the release of additional funds, the AUG Value-Add Activity would not progress.

Once all necessary approvals are received, the AUG Expert will carry out the AUG Value-Add Activity according to the timeline and measurable deliverables agreed with UNCC and the AUG Sub-Committee.

The UNCC may ask the CDSP to temporarily suspend or stop the AUG Value-Add Activity if they feel that the AUG Expert has failed to fulfil their responsibilities in accordance with the timeframe and quantifiable deliverables and has not taken corrective steps to address these shortcomings.

If an AUG Value-Add Activity recommends further change to the industry post completion of the activity, an industry sponsor would be required to raise an UNC / IUNC Modification or DSC Change Proposal as per existing change processes.

Objective 3:

To enhance the existing Lessons Learnt process and formalise the requirement for the AUG Expert to conduct Continuous Improvement Activities.

The CDSP will continue to produce the Annual Review of the AUG Period Report towards the end of each AUG Year (Years 1, 2, 3) in the AUG Period.

The AUG Expert will be expected to produce a Lessons Learnt Review towards the end of AUG Year 3 within the AUG Period. This review is expected to contain proposed Continuous Improvement Activities which would be carried out to enhance the production of the AUG Statement and AUG Table throughout the following ‘AUG Period’. In some cases, Continuous Improvement Activities may become AUG Value-Add Activity Initial Proposals.