{"id":7971,"date":"2012-02-17T16:16:28","date_gmt":"2012-02-17T16:16:28","guid":{"rendered":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/?post_type=smg-issue&#038;p=7971"},"modified":"2014-03-20T14:02:54","modified_gmt":"2014-03-20T14:02:54","slug":"issue-23-apparent-tendency-for-eac-values-to-under-estimate-consumption","status":"publish","type":"smg-issue","link":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/smg-issue\/issue-23-apparent-tendency-for-eac-values-to-under-estimate-consumption\/","title":{"rendered":"Issue 23: Apparent Tendency for EAC Values to Under-Estimate Consumption"},"content":{"rendered":"","protected":false},"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","inline_featured_image":false},"tags":[],"class_list":["post-7971","smg-issue","type-smg-issue","status-publish","hentry"],"acf":[],"semantic_search":{"post_id":7971,"title":"Issue 23: Apparent Tendency for EAC Values to Under-Estimate Consumption","link":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/smg-issue\/issue-23-apparent-tendency-for-eac-values-to-under-estimate-consumption\/","categories":[],"tags":[],"content":"\n\n<div class=\"panel-content\">\n\t\n\t<div class=\"panel-section\">\n\t\t\t\t\t<div class=\"panel-section\">\n\t\t\t\t<div class=\"accordion\">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"accordion-group\">\n\t\t\t\t\t\t\t<h2 class=\"accordion-title\" tabindex=\"0\" id=\"summary\" aria-expanded=\"false\">Summary<\/h2>\n\t\t\t\t\t\t\t<div class=\"accordion-panel\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t<div class=\"panel-inner\">\n\t\t\t\t\t\t\t\t\t<p>The Non Half Hourly settlement process relies heavily on estimates of annual consumption (EACs), particularly at SF and early reconciliation stages. This use of EACs is based on the assumption that they are a reasonable estimate of consumption. However, this assumption appears to be flawed, because analysis (carried out by Distributors and Elexon) suggests that EAC values are, on average, lower than actual consumption.<br>\nThis discrepancy appears to be driven by the backward looking nature of EACs, and their failure to capture growth in demand over time. This has a number of implications for both trading parties and DSOs:<\/p>\n<ul>\n<li>Total NHH uncorrected energy tends to increase across settlement runs<\/li>\n<li>The degree of correction in the NHH market is larger than necessary<\/li>\n<li>Suppliers have a perverse incentive not to read meters \/ suppliers that read meters more frequently are effectively penalised<\/li>\n<li>DUoS bills (based on uncorrected consumption) are lower than they should be<\/li>\n<li>Error becomes fixed at RF whenever EACs have not been replaced by actual meter readings<\/li>\n<\/ul>\n<p>In view of the above I believe the time is right to review of the EAC methodology with a view to improving the accuracy of consumption estimates. As discussed this would best be done through a settlement issue and I therefore formally request that an issue should be raised and pursued.<\/p>\n\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"accordion-group\">\n\t\t\t\t\t\t\t<h2 class=\"accordion-title\" tabindex=\"0\" id=\"history\" aria-expanded=\"false\">Progression<\/h2>\n\t\t\t\t\t\t\t<div class=\"accordion-panel\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t<div class=\"panel-inner\">\n\t\t\t\t\t\t\t\t\t<p>The Issue 23 Group met on 5 September 2006. The Group considered the results of analysis carried out by Elexon in order to determine whether EAC values actually underestimate consumption. The Group discussed the results and concluded that there may be an issue regarding the estimation of consumption, but that EACs are not systematically underestimating consumption. Furthermore the materiality and cause of any such issue is difficult to determine, and various aspects which may be contributing factors are already being examined in other existing forums outside of the Issue Group.<br>\nThe Group requested that Elexon produce a paper to be presented to the SVG and Panel in October, summarising the findings of the Issue 23 Group. The Group is not scheduled to meet again.<br>\nHTUIssue 23 Final ReportUTH was presented to the BSC Panel on 12 October 2006.<\/p>\n\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n<\/div>","s3_url":""},"_links":{"self":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/smg-issue\/7971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/smg-issue"}],"about":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/types\/smg-issue"}],"version-history":[{"count":0,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/smg-issue\/7971\/revisions"}],"wp:attachment":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/media?parent=7971"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/tags?post=7971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}