Chart of the week | UIG UNC SOS

Unidentified gas (UIG), continues to create issues for shippers and suppliers alike. Since the introduction of new gas settlement arrangements in June 2017, the UIG process has been problematic.

The nub of the issue is that the initial allocation of UIG volumes can range between -15% and +25% of all gas flowing through the local distribution networks. Our chart this week looks at the 12 rule changes to tackle various elements of UIG.

To keep reading, please log in to your account

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Low carbon generation

The outlook for private wire business models

Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...

Regulation and policy

Taking charge: the MHHS implementation levy

On 10 June the BSC Panel approved the Market-wide Half Hourly Settlement (MHHS) Implementation Charge for 2021-22. The new charge, introduced under modification P413 Market-wide Half Hourly Settlement Programme Manager, will cover Elexon’s programme management costs for MHHS implementation. It will be levied on suppliers on a monthly basis, based...

Regulation and policy

Australian Chart of the week | EnergyConnect: transformational highway or white elephant?

Last week, the AER delivered their final regulatory approval for Project EnergyConnect (PEC) with total costs of $2.28b. This signifies the end of a process that began back in 2016 when the initial project specification report was released. There was some uncertainty around the viability of the project. However, a $295 million...

Low carbon generation

Australian Chart of the week | A view of captured prices by technology in New South Wales

This Chart of the week examines the historical captured prices of selected technologies within NSW for the last 10 years. Figure 1 shows the historical rolling monthly average of captured prices of various technologies within New South Wales against the monthly generation of variable renewable resources including small scale rooftop....

Low carbon generation

Australian Chart of the week | “I feel the earth move under my feet”: from high to lows

We have seen a dramatic shift in FCAS price fortunes over the past year or so, going from all-time highs of ~$229.3mn in Q1 of 2020 (due to the separation event) to only ~$40.1mn in Q1 2021. Since 2019 we have also seen regulation raise prices decline from robust prices...

Low carbon generation

Chart of the week | Higher or lower? Transitioning to the UK ETS

Carbon prices, especially the EU Emission Trading System (ETS), have experienced considerable volatility over the last year, influenced first by COVID-19, which saw prices crash, and more recently by expectations of increased EU climate ambitions, driving prices to record highs. In this Chart of the Week, we consider the potential...

Energy storage and flexibility

Australian Chart of the week | Slow is smooth and smooth is fast for the NEM transition

Reporting season is all but over for the energy majors in Australia and that has left us with a bevy of takeaways on the sentiment for the not-so-distant future. A key thread among reports has been the current low-price environment in the NEM. This is a topic that we have...

Commercial and market outlook

Chart of the week | Saying goodbye to 2020

While lockdown may have been the most used word overall in 2020, in the energy sector net zero would certainly give it a run for its money. The raft of policy announcements, particularly in the last few weeks, will lead to a dramatic change in sector especially with moves to...