Getting Ready for Project Nexus this June

The gas industry is about to undergo a huge update in June.

When will the update take place?
This update called Project Nexus, managed by Ofgem, will be ‘going live’ on the 1st June 2017.

The transition period for the update will happen during 23rd May to 6th June 2017, and will take place across the whole gas industry.

How will nexus affect energy customers?
As mentioned in our last post, new customers could experience some delay in switching energy providers as they would be unable to register during the upgrade period.

Why is the central gas system being updated?
The outdated system hasn’t had a big upgrade like this since the late 1990s, so by replacing the old system, the gas industry will see some major benefits with an increase in the system’s ability to receive, store and deliver data, ideal for supporting the rollout of smart meters.

What is changing? Independent Gas Transporters
Independent Gas Transporters (IGTs) of any size will be able to store and transfer information using the Xoserve central IT system, allowing suppliers to access relevant IGT data quickly and efficiently.

Formula year Annual Quantity and Supply Offtake Quantity (AQ/SOQ)
Replacing the current October cycle, the Formula AQ/SOQ will be fixed from April 1st to March 31st every year to fall in line with the changes to IGTs. These will be used to calculate transportation charges (with most cases being based on the Rolling Annual Quantity and Supply Offtake Quantity from December 1st the previous year).

Rolling Annual Quantity (AQ) and Supply Offtake Quantity
With the new system update, Xoserve will be able to provide more accurate figures for consumption and provide a new rolling annual quantity calculation every month (based on a meter reading being provided each month and dependent on settlement class).

Meter Settlement Classes
There will be 4 settlement classes, allowing accuracy to be improved in an effective way. Including changes to existing meters, the classes will be structured as follows:

Settlement Class

1 Meter points with a rolling AQ of over 58,600,000 kWh
1 Readings must be provided to Xoserve by 11am of following day of gas consumption
2, 3, 4 Meter points with a rolling AQ of under 58,600,000 kWh
2 Readings must be provided to Xoserve within 24 hours of following day of gas consumption
3 Readings must be provided to Xoserve daily but can be grouped together and issued weekly/fortnightly/monthly
4 Readings must be provided to Xoserve monthly or annually (dependant on size of AQ).

Unidentified Gas Charge Removed
Unidentified gas (UIG) will now be calculated in a different way to allow for an increase in accuracy in calculations.

A share of unidentified gas will be allocated between classes for distribution zones and shippers, replacing the old AQ allocation of Unidentified Gas charge(AUG).

To find out more about Project Nexus, visit the Ofgem website, or you can call BAS Energy on 0845 1800 700 or send us a message for more information regarding our gas procurement services.