Unidentified Gas (UIG)
In 2013 Phidex was approached by a trade body representing a sector of the UK Gas Market. We had previously undertaken some projects for its members and were seen to be a credible consultancy who could take on challenging projects and deliver results that would stand up to intense scrutiny.
At that time there was a change to the way unidentified gas (UIG) was being charged to the participants of the UK gas market; moving to fairly apportion the lost and stolen gas from the small supply point sector to the full market.
An expert organisation was appointed by Ofgem to calculate the charge split across the industry and provide supporting data and the methodology to how this was carried out.
There were concerns about the accuracy of the split and, considering the many million of pounds at stake, Phidex were invited to review the data and audit the results.
The supporting data contained all reads for all meter points taken during a 3 year period. This represented over 60Gb of data, over 21 million meter points and 235 million individual reads to review.
Under tight timescales, Phidex was assigned to identify, quantify and provide proof that the apportionment of UIG to the sector representing our clients was overstated and provide instructions to the appointed Expert how to make the final results more accurate.
Phidex is used to handling big data. We have the infrastructure and years of experience to assist our approach.
- Find something which doesn’t look right and you’ll find more examples, if you know how and where to look.
- Experience is invaluable in identifying the root cause of data and energy calculation errors.
- Effective project planning and resource management creates a results focussed environment.
Phidex delivered compelling results within challenging timescales. Numerous root causes of error were identified, including a material list of actual examples to support a forecasted reduction in the value to be charged to our client’s shipper organisations.
In September 2013, following acknowledgement from those organisations involved that our input had resulted in a change to the methodology, a reduction of 45% of the chargeable value was published. This meant tens of millions of pounds of mis-calculated energy would not be charged to our clients, which would ultimately have been passed on to their customers. This reduction was indisputable because it was fully supported by industry provided data.
Not for the first time, Phidex showed there is no substitution for genuine and relevant experience in the UK Energy Market and the appetite to deliver success.
Ofgem commented Phidex were “Instrumental in changing the approach to unidentified gas”.