user pays presentation 6th november 1 user pays services november 2007
TRANSCRIPT
user pays presentation 6th November
1
user pays servicesuser pays services
November 2007November 2007
2
user pays presentation 6th November
Background
Part of the latest Gas Distribution Price Control Review to; Focus on how xoserve should be funded, and Drive efficient use of xoserve services Incentivise xoserve and GTs to develop innovative solutions for customers
Consultation recommended that xoserve be funded using; majority covered by transportation charges provided free at point of delivery, and part ‘user pays’ services
In their updated GDPCR proposals Ofgem has proposed that £2.83m be excluded from the Transporters allowed revenue.
Ofgem convened workgroups identified a number of current xoserve (ASA) services that will form the user pays services
The industry is to implement arrangements for provision of user pays services
Ofgem view this as the proof of concept of user pays that could inform how the principle could be extended in future.
3
user pays presentation 6th November
user pays
An industry group has been established to deal with implementation matters
See the Joint Office website for all documentation etc http://www.gasgovernance.com/industryinfo/xoserveGroup Three meetings held, further meeting scheduled for:
December 10th
4
user pays presentation 6th November
Current service provision model
Ofgem
Transporters Shippers
xoserve
Formula revenue
TransportationCharges
AgencyServicesAgreement
services
5
user pays presentation 6th November
user pays service provision model
Ofgem
Transporters Shippers
xoserve
Formula revenue - £2.83m*
TransportationCharges - £2.83m*
AgencyServicesAgreement
services
Shippers /users
user pays services
payment
*subject to GDPCR outcome
6
user pays presentation 6th November
Principles
user pays services will be implemented with the following principles;
As-Is deliverables Mostly existing service standards Existing delivery frequencies Existing business rules
user pays services that were previously free at the point of delivery will now be provided on a directly chargeable basis
7
user pays presentation 6th November
PROVISION OF INFORMATION (type 2) D8TA CENTRE SERVICES
SERVICE PERFORMANCE STANDARDS
CHARGING BASIS
BUSINESS RULES
PRICE
IAD As per current arrangements Per IAD account
As per UNC, GT Licence etc
D8TA CENTRE TELEPHONE ENQUIRY LINE
Arrangements under review
(currently 3 MPRNs per call
5 data items per MPRN)
Chargeable phone line
DVD On a quarterly basis Per DVD
EMAIL SERVICE
Based upon number of MPRNs and requests
Per request
8
user pays presentation 6th November
PROVISION OF INFORMATION (type 2)D8TA CENTRE SERVICES
AVAILABLE EMAIL REPORTS Business Rules PRICE
1 Incoming Shipper Report
As per UNC, GT Licence etc
2 Previous Shipper/Supplier
3 Current Shipper & MSN
4 AQ/SOQ/EUC/Exit Zone/Postcode
5 Meter Removal Date Report
6 Meter Details Report
7 Address Details Report
8 Confirmation Effective Date Report
9 Last Meter Read and Date
10 Domestic Third Party AQ Report
9
user pays presentation 6th November
REPORTING (type 2)
REPORT TITLE TRIGGER FREQUENCY CHARGING BASIS
PRICE
Query Management - Standards of Service report
Auto by date Monthly By report
Invoice Queries - queried and withheld amounts
End user request Ad hoc By report
Invoice Queries - awaiting adjustment
End user request Monthly By report
Invoice Queries - pending adjustment
End user request Monthly By report
Portfolio Statement Auto by date Monthly By report
User Portfolio End user request Ad hoc (no more frequent than monthly)
By report
10
user pays presentation 6th November
…REPORTING (type 2)
REPORT TITLE TRIGGER FREQUENCY CHARGING BASIS
PRICE
CSEPS portfolio statement Receipt of user request
Ad hoc By report
Unique Sites - portfolio statement
Receipt of user request
Ad hoc By report
Annual Asset Portfolio Auto by date Annually By report
Transco Asset Portfolio Auto by date Monthly By report
[“DEad” portfolio Auto by date Monthly By report]*
* to be confirmed
11
user pays presentation 6th November
AQ Enquiries (type 2)
SERVICE PERFORMANCE STANDARDS
CHARGING BASIS BUSINESS RULES PRICE
AQ enquiry 2 business days Per MPRN enquiry As now
12
user pays presentation 6th November
MUST READS (type 1)
SERVICE PERFORMANCE STANDARDS
CHARGING BASIS
BUSINESS RULES
PRICE
Must Read provision
As now. Trigger, as now.
Per valid read obtained
As now
13
user pays presentation 6th November
Shipper Agreed Reads (type 1)
SERVICE PERFORMANCE STANDARDS
CHARGING BASIS
BUSINESS RULES PRICE
UO1 FILES 2 days Per MPRN As now
EMAIL To be notified Per MPRN As now
FAX To be notified Per MPRN As now
14
user pays presentation 6th November
User Admission (type 1)
SERVICE PERFORMANCE STANDARDS
CHARGING BASIS BUSINESS RULES
PRICE
User Admission None Per user applicant As now
15
user pays presentation 6th November
Draft High Level Timeline
SEP OCT NOV DEC JAN 08 FEB MAR APR
User Pays Implementation Discussions
MAY
01/04/08 – Start of Formula Year
24/09/07 – Ofgem – Updated Proposals Published
Joint Agency Charging Statement Publication
12/07 – Ofgem – Final Proposals Published
21/02/08 – Panel - Issue Recommendation
20/12/07 – PanelIssue for Consultation
Agency Framework Agreement Draft
+28 days
UNC mod
16
user pays presentation 6th November
user engagement
Next steps: Contact all users to:
Explain user pays Assess likely take-up of services Establish user pays contacts
Early next year Provide contracts for user pays services Confirm service delivery arrangements
Note: xoserve are still able to offer commercial services to Shippers and other organisations
17
user pays presentation 6th November
User Pays Commercial arrangements
Type 1 services invoicing Type 2 services commercial arrangements
18
user pays presentation 6th November
User Pays Invoicing Type 1
User Pays Invoicing Type 1
Delivery method of invoices and supporting information
Potential Charge Types
19
user pays presentation 6th November
User Pays Invoicing - Type 1
Invoices will be sent using existing ad-hoc processes An existing invoice type will be used (ADN) New charge types will be added to the invoice for each type 1
service Notification of these charge types will follow the Operational
Rules Governing The Supply of Invoice Charges Via the Ad-Hoc Process (1 month notice)
It is anticipated that there will be one Type 1 invoice per user per month including charges for any/all service lines procured
Supporting information will be delivered via e-mail where required
Payment terms will be in line with Section S of UNC
20
user pays presentation 6th November
User Pays Invoicing – Type 1 Potential Charge Types
Invoice Type Charge Type Description
ADN N28 Shipper Agreed Reads Credit
ADN N29 Shipper Agreed Reads Debit
ADN N30 User Admission Charges Credit
ADN N31 User Admission Charges Debit
ADN N32 Must Reads Credit
ADN N33 Must Reads Debit
21
user pays presentation 6th November
User Pays commercial arrangements – type 2 services
Four contractual documents published in the public domain:
- Terms and Conditions
- Service Schedules
- Contractual documentation e.g. Service Orders
- Agency Charging Statement
22
user pays presentation 6th November
User Pays Type 2 commercial model
User PaysFrameworkContract –
T&Cs
User PaysFrameworkContract – Schedules:POI – IADPOI – RFIPOI – DVD
POI – Email rptsReporting
AQ Enquiries
AgencyChargingStatement
(prices)
User PaysContract docs:Service order
etc
User Payscustomer
xoserve
Order (under T&CS)
Service and Invoice (under T&Cs and KPIswhere applicable)
23
user pays presentation 6th November
User Pays type 2 arrangements
Users will order services (using the Service Order document) under the published terms and conditions.
The Service Order will be part of the contract.
Service Orders will be subject to standard confidentiality provisions.
xoserve can implement control measures with users e.g. only accepting orders from authorised persons within user organisations
24
user pays presentation 6th November
User Pays type 2 Service Order e.g.
user xoserve
Submit Service Order for 12 portfolio reports
Validate Service Order and acknowledge
Receive acknowledgement
Deliver service, confirm delivery
Confirmation of delivery
Raise invoice (and supporting information)
Receive invoice and pay
Receive payment
25
user pays presentation 6th November
Term Comments
Contract structure Public documents, Service Order forms part of contract
Credit / security arrangements May be required, dependent on contract size and company credit rating
Intellectual Property Rights (IPR) General principle that xoserve retains IPR in service delivery mechanisms and reports produced. IPR in the data generally envisaged to be unchanged by the provision of the services
Data Protection Recognition and explanation of xoserve’s role
Confidentiality Confidentiality provisions to be two was as appropriate.
Liabilities Performance standards to be detailed in Service Schedules, as appropriate. Liabilities position under review
Invoicing In GB pounds. Monthly in arrears. Possible rule regarding value and age of debt to minimise number of lower value invoices
User Pays Type 2 contract T&Cs….
26
user pays presentation 6th November
…User Pays Type 2 contract T&Cs
Term Comments
Price As per published Agency Charging Statement
Payment terms 28 calendar days
Invoice challenges Bona fide disputes to be notified within set period of invoice issue
Late payment Anticipated to be in accordance with Late Payment of Commercial Debts (Interest) Act 1998.
Limitations on service provision Where appropriate, permissions to request / release data must be in place.
Customer obligations Customer to request services using the Service Order form. Where required to provide data (email reports). Warrant that they are entitled to receive the service.
27
user pays presentation 6th November
User Pays type 2 Service Order
The Service Order is used to order type 2 services from xoserve
The Service Order will require key customer information e.g. invoicing contact details etc
xoserve will validate the Service Order for completeness, and can, if required, validate against certain user criteria e.g. authorised submitter
xoserve will acknowledge the Service Order and provide service delivery information
The Service Order must contain a signature, anticipated fax or paper submission will be required
28
user pays presentation 6th November
User Pays Agency Charging Statement
SERVICE CHARGING BASIS Type
IAD Per IAD account 2
D8TA CENTRE TELEPHONE ENQUIRY LINE
Chargeable phone line 2
DVD Per DVD 2
EMAIL SERVICE Per MPRN / request 2
Reports By report 2
AQ Enquiry Per MPRN enquiry 2
Must Reads Per valid read obtained 1
Shipper Agreed Reads Per Read 1
User Admission Per admission application 1
29
user pays presentation 6th November
User Pays Agency Charging Statement
Pricing methodology:
Principle of reflective cost recovery charges against forecast demand
Reflective cost recovery charges to include:- Operational costs- System operations costs
Forecast demand:- Assessment of take-up of services
30
user pays presentation 6th November
User Pays Agency Charging Statement(as per current licence proposals)
Contents:
Introduction and backgroundScope of user pays and core servicesCharging basisCharging methodologyService chargesInvoice supporting information Frequency of reviewReference to user pays terms and conditions and service schedules
31
user pays presentation 6th November
Summary
user pays will be effective from 1st April 2008
xoserve project team initiated to implement
Industry engagement has commenced
Services themselves unchanged
Changes to GT licences have been proposed by Ofgem. A UNC modification has been proposed
xoserve contact points for Shipper user pays operational matters; Andy Miller, Helen Field and Emma
Lyndon for all other matters Andy Miller