SGN’s 2005/06 Shrinkage Assessment and Adjustment

Shrinkage Forum - 8Shrinkage Forum - 8thth March 2007 March 2007

Contents

• Methodology behind the Assessed Shrinkage Factors

• Assessed Shrinkage Factors• LDZ Shrinkage Reconciliation Quantities• Financial value of Energy Adjustment• Financial value of Commodity Charge

Adjustment

Methodology Behind the Assessed Shrinkage Factors

• Leakage factor: only change is ASP• OUG factor: revised due to verification of

Advantica model • TOG: remained constant

Assessed Shrinkage Factors 2005/06

  Leakage Factor % OUG Factor % TOG Shrinkage Factor%

LDZ Applied Assessed Change Applied Assessed Change Constant Applied Assessed Change

Scotland 0.482 0.482 -0.000002 0.035 0.012 -0.023 0.020 0.540 0.514 -0.026

SE 0.611 0.612 0.002 0.035 0.012 -0.023 0.020 0.670 0.644 -0.026

Southern 0.727 0.682 -0.048 0.035 0.012 -0.023 0.020 0.780 0.714 -0.066

LDZ Shrinkage Reconciliation Quantities 2005/06

LDZAssessed LDZ Shrinkage

Quantity (kWh)Procured LDZ Shrinkage

Quantity (kWh)LDZ Shrinkage Reconciliation

Quantity (kWh)

SC 302,706,259 318,144,415 -15,438,157

SE 469,365,436 488,668,392 -19,302,956

SO 326,899,378 357,242,147 -30,342,769

SGN 1,098,971,073 1,164,054,955 -65,083,882

Financial Value of Energy Adjustment

LDZ Reconciliation Quantity (kWh) Energy Adjustment (£s)

SC -15,438,157 -287,089

SE -19,302,956 -375,587

SO -30,342,769 -600,540

SGN -65,083,882 -1,263,216

Financial Value of Commodity Charge Adjustment

LDZ Reconciliation Quantity (kWh) Commodity Charge Adjustment (£s)

SC -15,438,157 -45,713

SE -19,302,956 -56,235

SO -30,342,769 -88,401

SGN -65,083,882 -190,350