Gas Shrinkage

Description

WWU is required to purchase gas which is predominantly gas which is unaccounted for or used in connection with the operation of its network in accordance with Section N of the Uniform Network Code (UNC). Under UNC rules, Shrinkage Gas is dealt with on a daily basis with Wales & West being required to acquire gas to meet its daily Shrinkage Gas requirement. Shrinkage Gas comprises: • Own use gas - gas used by WWU in connection with the operation of its network including gas used in running compressors, gas used for preheating and vented gas • Unaccounted for gas - gas which is lost or otherwise not accounted for as offtaken from its network including gas lost or unaccounted for by reason of unidentified theft and leakage WWU are allowed to recover the market related costs of purchasing a pre-determined target daily volume of Shrinkage Gas in each year via its regulated transportation revenue. Lot 1: WWU requires an Agent to provide a Shrinkage Procurement Service which includes nominating, transacting and purchasing the daily Shrinkage Gas quantities on behalf of WWU. At the end of each month, the Agent should provide a report setting out the cost of all gas transactions for the month, identifying separately the Agent's management fee. The level of gas we require is based on a set daily amount of approximately 28,000 therms per day. The precise volumes will be known in advance of 1st April each year. The profiling of the gas purchases within the year may differ, however this will be communicated in advance. All daily volumes will be nominated to WWU's Shrinkage Gas Account on a daily basis such that the account attracts no imbalance/cash out charges on any day. All transactions will be at National Balancing Point (NBP) under NBP terms. We require a cost per therm for carrying out the procurement services as outlined above and a brief summary of the other benefits of procuring your services such as daily bulletins or monthly industry updates which would be made available. The market related costs are calculated using the gas price based on the Closing Day Ahead Heren or Weekend Offer price on each day, so Wales & West strategy is purchase at this gas price.