APPENDIX referred to in paragraphs and BG s price

Document Sample
APPENDIX referred to in paragraphs and BG s price Powered By Docstoc
					                                               APPENDIX 3.1
                                 (referred to in paragraphs 3.14 and 3.23)


                       BG's price schedules for contract gas customers

The schedules of prices and terms for contract gas customers have been in place since 1 May 1989 following the
publication in October 1988 of the MMC report on contract gas pricing. Since that time schedules have changed
to meet BG's view of customer and market requirements. All schedules moved from an imperial (therms) to a
metric (kilowatt hour) basis on 1 April 1992 (1 therm = 29.3 kWh).

There are now four different types of published schedule available to customers:

   1. Schedule of Prices and Terms for the Supply of Gas to Firm and Interruptible Contract Customers,
      reference F15, 1 December 1992 (amended 1 May 1993). This contains prices and terms for contracts of
      not less than one year's duration for the supply of:

         -   firm gas to single or multiple premises of a customer, each premises consuming in excess of 732,678
             kWh a year;

         -   interruptible gas, also to single or multiple premises of a customer, each premises consuming in
             excess of 5,861,421 kWh a year; and

         -   gas under two or more schedule contracts consumed at premises covered by Umbrella Agreement.

      The FI5 schedule superseded the FI4 schedule and corrected the anomaly that otherwise identical firm
      contract customers could be charged differing amounts for a full year's supply because their contracts
      commenced in different months. The schedule also removed the option for interruptible customers to
      select contracts which allowed for differing lengths of interruption. This was because very few short and
      medium period interruption contracts had been taken up.

   2. Schedule of Prices and Terms for the Supply of Gas on a Medium Term (three to ten year) basis to Firm
      and Interruptible Contract Customers, reference MT3, 1 December 1992. The MT3 schedule differs from
      previous medium-term schedules in that it provides for single premises contracts only for both firm and
      interruptible gas. An Umbrella Agreement is available as with the FI5 schedule.

   3. Schedule of Price and Terms for the Supply of Gas on an Interruptible basis to Contract Customers,
      reference LTI3, 1 April 1992. This refers to a contract period of not less than ten years nor more than 15
      years and to a nominated gas consumption of not less than 1,465,355 MWh a year at the premises. Each
      customer is limited to a maximum of 15,386,277.5 MWh. The earliest start date is 1 October 1996 and the
      latest start date is 30 September 1997.

   4. Schedule of Prices and Terms for the Supply of Gas on a Large Volume Short Term Interruptible basis to
      Contract Customers, reference LVST1, 1 April 1992. This refers to a contract period of not more than six
      months and to a nominated consumption of not less than 1,025,748.5 MWh and not more than 4,396,065
      MWh, with consumption starting not earlier than 1 January 1992 and not later than 31 October 1993.

The following tables (numbered as they appear in the schedules) show examples of the standard prices and terms
available on these schedules. Customers may choose alternatives to the standard contract terms by selecting
optional terms, some of which are shown below. These are summarized versions of the schedules and reference
must be made to the relevant schedule for all individual transactions between BG and its customers.




                                                      315
Schedule FI5, 1 December 1992

1: Firm Gas-contract period 1 year

(i)    Block Price: The price of gas for the first 732,678 kilowatt hours consumed at each premises in each block
       year shall be 1.396 pence per kilowatt hour. This price will be revised from time to time and will be
       applied in accordance with the contract terms.

(ii)   Scheduled Reference Price: The price for gas consumed in excess of 732, 678 kilowatt hours at each
       premises in each Block Year will comprise a Monthly Charge (£) and a price per kilowatt hour (p/kWh).

(a)    Standard Terms: The Scheduled Reference Prices for the Nominated Annual Consumption levels under
       standard Firm gas contracts are given in Table 1. These prices will move in line with the Schedule as
       published from time to time and will be applied in accordance with the contract terms.

TABLE 1a Firm Gas-Schedule Reference Price-Standard Terms, Volume Bands 1 to 6


  Thermal
  Equivalent               25,001         50,001          100,001         150,001         250,001       500,001
  Volume Bands               to             to              to             to               to             to
  Therms/Annum             50,000         100,000         150,000         250,000         500,000      1,000,000




  Volume Band                  1              2                3                4            5             6

  Nominated               732,679        1,465,356        2,930,711       4,396,066      7,326,776     14,653,551
  Consumption                to              to               to              to             to            to
  KWh/Annum              1,465,355       2,930,710        4,396,065       7,396,775      14,653,550    29,307,100

  Monthly Charge (£)           57             67               296              421         629          1,046

                                                       Pence per kWh

  Single Premises          1.288           1.280           1.186            1.152          1.117         1.083

  Multiple Premises            -           1.297           1.203            1.169          1.135         1.100



TABLE 1b Firm Gas-Scheduled Reference Price-Standard Terms, Volume Bands 7 to 12


  Thermal
  Equivalent           1,000,001       2,000,001      5,000,001        10,000,001      25,000,001       Greater
  Volume Bands             to              to             to               to              to             than
  Therms/Annum         2,000,000       5,000,000      10,000,000       25,000,000      50,000,000      50,000,000




  Volume Band              7              8                9               10              11              12

  Nominated            29,307,101     58,614,201      146,535,501      293,071,001     732,677,501       Greater
  Consumption              to              to              to               to              to             than
  KWh/Annum            58,614,200     146,535,500     293,071,000      732,677,500    1,465,355,000   1,465,355,000

  Monthly Charge (£)     2,504           4,587          13,962           22,295          37,920          48,337

                                                     Pence per kWh

  Single Premises        1.024           0.981           0.904            0.870          0.845           0.836

  Multiple Premises      1.041           0.998           0.921            0.887          0.862           0.853


(b)    Optional Terms: The options available and the price variations to the Scheduled Reference Price-Standard
       Terms are given below:




                                                           316
      (i) Priced fixed for:                     1 year              +5%
                                                2 years             +10%


      (ii) Priced indexed for 1 or 2 years                          No extra charge
           Indices                                                  50% PPI: 50% Gas Oil


          (c) Seasonal Pricing Factors: The prevailing Scheduled Reference Prices in Table 1 [which
              comprise a monthly charge and pence per kWh rate] as modified by any option chosen by the
              customer will be adjusted in the months shown by the application of the Seasonal Pricing Factors
              contained in Table 2.

                        TABLE 2 Seasonal Pricing Factors


                                             Month                         Factor

                         December, January, February, and March              1.0
                         April, May, October and November                    .95
                         June, July, August and September                    .85


                        These factors also apply to Firm Medium Term Contracts.




2: Interruptible Gas

(i)   Standard Terms of an Interruptible Gas Contract: Gas supplies under a contract of 1 year duration to
      single or multiple premises of the Customer, each premises consuming in excess of 5,861,420 kilowatt
      hours per annum. Scheduled References Prices will comprise a Monthly Charge (£) and a price per
      kilowatt hour (p/kWh).

          The periods of interruption, which will occur at British Gas' discretion and may or may not be
      continuous, are for a minimum period of 7 days and up to a maximum of 90 days.

          The minimum period of interruption under this Schedule is currently suspended.

           The twelve Monthly Charges and the prices per kilowatt hour will move in line with the Schedule as
      published from time to time. If necessary, at the commencement of each contract month, the contract
      prices will be adjusted to the appropriate Monthly Charges and prices per kilowatt hour given in the
      published Schedule operating at that date.

           The Scheduled Reference Prices for the Nominated Annual Consumption levels under the standard
      Interruptible gas contract are given in Table 3.




                                                          317
           TABLE 3a Interruptible Gas-Scheduled Reference Price, Volume Bands 1 to 4


             Thermal
             Equivalent                200,001          500,001         1,000,001       2,000,001
             Volume Bands                to                to               to              to
             Therms/Annum              500,000         1,000,000        2,000,000       5,000,000




             Volume Bond                  1                2                3               4

             Nominated               5,861,421        14,653,551        29,307,101     58,614,201
             Consumption                 to               to                to              to
             kWh/Annum               14,653,550       29,307,100        58,614,200     146,535,500

             Monthly charge (£)          760             1,593            3,176           4,509

             Number of Premises                      Pence per kWh

                       1                0.768            0.699            0.635           0.607

                       2                0.802            0.734            0.669           0.641

                       3                  -              0.768            0.703           0.676

                      4-5                 -              0.802            0.737           0.710

                      6-10                -                -              0.771           0.744

                     11-20                -                -                 -            0.778



           TABLE 3b Interruptible Gas-Scheduled Reference Price, Volume Bands 5 to 8


             Thermal
             Equivalent               5,00,001        10,000,001        25,000,001       Greater
             Volume Bands                to               to                to             than
             Therms/Annum            10,000,000       25,000,000        50,000,000      50,000,000




             Volume Band                  5                6                7               8

             Nominated               146,535,501      293,071,000       732,677,501       Greater
             Consumption                  to               to                to            than
             kWh/Annum               293,071,000      732,677,500      1,465,355,000   1,465,355,000

             Monthly charge (£)         7,009            7,842            9,925           9,925

             Number of Premises                      Pence per kWh

                       1                0.587            0.583            0.580           0.580

                       2                0.621            0.618            0.614           0.614

                       3                0.655            0.652            0.648           0.648

                      4-5               0.689            0.686            0.682           0.682

                      6-10              0.723            0.720            0.717           0.717

                     11-20              0.757            0.754            0.751           0.751



(ii)   Optional Terms at Customer Choice for an Interruptible Contract: The options available and the price
       variations to the Scheduled Reference Price are given below:



       OPTIONS


(i)    Extend Contract to 2 years duration                     No extra charge




                                                           318
(ii)   Price fixed for 1 year                                        +15%
                       2 year                                        +20%


(iii) Price Indexed for 1 or 2 years                              No extra charge
      Indices                                                      100% HFO



3: Umbrella Agreement
An Umbrella Agreement is available, and is applicable to two or more contracts of any type contracted under
Schedule F14 or MT1 or their respective successor Schedules. This Umbrella Agreement will determine the
percentage reductions to be applied for gas consumed at all of the premises under the Agreement taking into
account the annual payments made for gas consumed and the annual consumptions of gas for all the premises
under the Umbrella Agreement. Payments and the consumptions of gas for premises which do not reach the Firm
contract gas threshold of 732, 679 kilowatt hours per annum or the Interruptible contract gas threshold of
5,861,421 kilowatt hours per annum at the normal contract reconciliation date will not be included in the
calculation. A single calculation and payment will be made after each anniversary date of the Umbrella
Agreement or on its termination.

    The percentage reduction for each tranche of gas consumed within each twelve month period of the
Umbrella Agreement is shown in Table 4.
TABLE 4a   Percentage Reductions to be applied for Incremental Tranches of Gas to the Annual Payments made for gas consumed at
            premises covered by an Umbrella Agreement, Load Bands 1 to 6


  Load Band              1                   2                3                   4               5           6

  Kilowatt              Less          1,465,358        2,930,711            4,396,066      7,326,776      14,653,551
   hours                than              to               to                   to             to             to
  per Annum          1,465,358        2,930,710        4,396,065            7,326,775      14,653,550     29,307,100

  Percentage
   Reduction             0               0.1              0.15                 0.2             0.3            0.4




TABLE 4b   Percentage Reductions to be applied for Incremental Tranches of Gas to the Annual Payments made for gas consumed at
            premises covered by an Umbrella Agreement, Load Bands 7 to 12


  Load Band             7                8                9                  10              11              12

  Kilowatt          29,307,101      58,614,201       146,535,501        293,071,001      732,677,501       Greater
   hours                to               to               to                 to               to            than
  per Annum         58,614,200      146,535,500      293,071,000        732,677,500     1,465,355,000   1,465,355,000

  Percentage
   Reduction           0.5              0.6              0.7                 0.8             0.9             1.0




Connection Costs-New Supplies

British Gas will make an allowance towards the capital cost of connection of the gas supply to the Customer's
premises in order to deliver his Nominated Consumption of gas. Such cost will include pipes, apparatus and
metering equipment but exclude outlet supplies beyond the primary meter. The Customer may also be asked to
make a contribution to the cost as required under the contract. The allowance will be at the following rates
providing such allowance does not exceed the capital cost of connection and does not result in the supply being
uneconomic in accordance with Section 9 of the Gas Act 1986.

       Firm Gas Connection: £2.22 per thousand kilowatt hours of Nominated Consumption.




                                                               319
       Interruptible Gas Connections: £1.20 per thousand kilowatt hours of Nominated Consumption.

The average Nominated Consumption per Contract Year at the date of the Agreement shall be used to calculated
the level of allowance.


Schedule MT3 1 December 1992:

1: Firm Gas-contract period three to ten years

(i)    Initial Block Price: The price of gas for the first 732,678 kilowatt hours consumed at the premises in each
       Contract Year shall be 1.396p/kilowatt hour. This price will be revised from time to time and will be
       applied in accordance with the contract terms.

(ii)   Basic Scheduled Reference Price: The price for gas consumed in excess of 732,678 kilowatt hours at the
       premises in each Contract Year will comprise a Monthly Charge (£) and a price per kilowatt hour (p/kWh).

(a)    Standard Terms: The Basic Scheduled Reference Prices for the Nominated Annual Consumption levels
       under Medium Term Firm gas contracts are given in Table 1.
TABLE 1a Firm Gas-Basic Scheduled Reference Price, Volume Bands 1 to 6


  Thermal
   Equivalent              25,001         50,001          100,001            150,001        250,001        500,001
  Volume Bands               to             to              to                 to             to              to
  Therms/Annum             50,000         100,000         150,000            250,000        500,000       1,000,000




  Volume Band                1               2               3                     4           5              6

  Nominated               732,679        1,465,356       2,930,711          4,396,066      7,326,776     14,653,551
  Consumption                to              to              to                 to             to            to
  kWh/Annum              1,465,355       2,930,710       4,396,065          7,326,775      14,653,550    29,307,100

  Monthly Charge (£)         57             67              296                421            629           1,046

                                                       Pence per kWh

  Single Premises          1.288           1.280           1.186              1.152          1.117          1.083



TABLE 1b Firm Gas-Basic Scheduled Reference Price, Volume Bands 7 to 12


  Thermal
   Equivalent            1,000,001       2,000,001      5,000,001         10,000,001     25,000,001       Greater
  Volume Bands               to              to             to                to             to             than
  Therms/Annum           2,000,000       5,000,000      10,000,000        25,000,000     50,000,000      50,000,000




  Volume Band                7              8               9                 10             11              12

  Nominated              29,307,101    58,614,201      146,535,501        293,071,001    732,677,501       Greater
  Consumption                to             to              to                 to             to            than
  kWh/Annum              58,614,200    146,535,500     293,071,000        732,677,500   1,465,355,000   1,465,355,000

  Monthly Charge (£)       2,504          4,587           13,962            22,295         37,920             -

                                                      Pence per kWh

  Single Premises          1.024          0.981           0.904              0.870         0.845              -




The price of gas shall be determined, from the Start Date and over the life of the contract save for any review, by
the application of an indexation formula to the Basic Scheduled Reference Price of gas according to the specific
type of indexation terms chosen by the Customer. These choices are set out in Table 2 and incorporated in the
contract.




                                                           320
                      TABLE 2 Medium Term Firm Gas


                       Indexation Type                       A                              B

                       Indexation %             50 Gas Oil                  25 Gas Oil
                                                50 PPI                      25 Heavy Fuel Oil
                                                                            25 Coal
                                                                            25 Electricity



(b)   Seasonal Pricing Factors: The prevailing Basic Scheduled Reference Price in Table 1 as indexed by the
      Customer's chosen type of indexation will be adjusted in the months shown by the application of the
      Seasonal Pricing Factors contained in Table 3.

                      TABLE 3 Seasonal Pricing Factors


                                                  Month                                         Factor

                       December, January, February and March                                     1.0
                       April, May, October and November                                         0.95
                       June, July, August and September                                         0.85



2: Interruptible Gas-customer period three to ten years

       The standard terms of a Medium Term Interruptible gas contract apply to gas supplies under a contract of
not less than 3 and not more than 10 Contract Years duration to a single premises of the Customer, consuming in
excess of 5,861,420 kilowatt hours per annum.

     Basic Scheduled Reference Prices will comprise a Monthly Charge (£) and a price per kilowatt hour
(p/kWh).

      The periods of interruption will occur at British Gas' discretion and may or may not be continuous.
Interruption at a premises will take place for a minimum period of 7 days and up to a maximum of 90 days in
each Contract Year although the minimum period of interruption under this Schedule is currently suspended.

      The basic Scheduled Reference Prices for the Nominated Annual Consumption levels under Medium Term
Interruptible gas contracts are given in Table 4.

TABLE 4a Interruptible Gas-Basic Scheduled Reference Price, Volume Bands 1 to 4


 Thermal Equivalent               200,001                 500,001                 1,000,001               2,000,001
 Volume Bands                       to                       to                       to                      to
 Therms/Annum                     500,000                1,000,000                2,000,000               5,000,000




 Volume Band                           1                     2                        3                      4

 Nominated                       5,861,421             14,653,551                 29,307,101             58,614,201
 Consumption                         to                    to                         to                      to
 kWh/Annum                       14,653,550            29,307,100                 58,614,200             146,535,500

 Monthly Charge (£)                   760                 1,593                     3,176                   4,509

                                                  Pence per kWh

 Single Premises                      0.768               0.699                     0.635                   0.607




                                                               321
TABLE 4b Interruptible Gas-Basic Scheduled Reference Price, Volume Bands 5 to 8


 Thermal Equivalent              5,000,001                   10,000,001           25,000,001                   Greater
 Volume Bands                        to                          to                   to                         than
 Therms/Annum                    10,000,000                  25,000,000           50,000,000                  50,000,000




 Volume Band                           5                         6                      7                         8

 Nominated                       146,535,501                293,071,001         732,677,501                     Greater
 Consumption                          to                         to                  to                          than
 kWh/Annum                       293,071,000                732,677,500        1,465,355,000                 1,465,355,000

 Monthly Charge (£)                   7,009                    7,842                  9,925                        -

                                                        Pence per kWh

 Single Premises                      0.587                    0.583                  0.580                        -



The price of gas shall be determined, from the Start Date and over the life of the contract save for any review, by
the application of an indexation formula to the Basic Scheduled Reference Price of gas according to the specific
type of indexation terms chosen by the Customer. These choices are set out in Table 5 and incorporated in the
contract.

                      TABLE 5 Medium Term Interruptible Gas


                       Indexation Type                          A                           B

                       Indexation %               100 Heavy Fuel Oil        25 Gas Oil
                                                                            25 Heavy Fuel Oil
                                                                            25 Coal
                                                                            25 Electricity



MT connection costs for new supplies are similar to those shown under FI connection costs above.


3: Umbrella Agreement
      An Umbrella Agreement is available, and is applicable to two or more contracts of any type contracted
under Schedule F14 or MT1 or their respective successor Schedules. This Umbrella Agreement will determine
the percentage reductions to be applied for gas consumed at all of the premises under the Agreement taking into
account the annual payments made for gas consumed and the annual consumptions of gas for all the premises
under the Umbrella Agreement. Payments and the consumptions of gas for premises which do not reach the Firm
contract gas threshold of 732,679 kilowatt hours per annum or the Interruptible contract gas threshold of
5,861,421 kilowatt hours per annum at the normal contract reconciliation date will not be included in the
calculation. A single calculation and payment will be made after each anniversary date of the Umbrella
Agreement or on its termination.

    The percentage reduction for each tranche of gas consumed within each twelve month period of the
Umbrella Agreement is shown in Table 6.
TABLE 6a   Percentage Reductions to be applied for Incremental Tranches of Gas to the Annual Payments made for gas consumed at
            premises covered by an Umbrella Agreement, Load Bands 1 to 6


 Load Band                        1               2                   3           4                 5                  6

 Kilowatt hours                  Less          1,465,358        2,930,711   4,396,066           7,326,776        14,653,551
 per Annum                       than              to               to          to                  to               to
                              1,465,358        2,930,710        4,396,065   7,326,775           14,653,550       29,307,100

 Percentage Reduction             0               0.1                0.15      0.2                 0.3                 0.4




                                                                    322
TABLE 6b      Percentage Reductions to be applied for Incremental Tranches of Gas to the Annual Payments made for gas consumed at
             premises covered by an Umbrella Agreement, Load Bands 7 to 12


  Load Band                          7           8                    9         10                11                  12

  Kilowatt hours                29,307,101   58,614,201       146,535,501   293,071,001      732,677,501            Greater
  per Annum                         to            to               to            to               to                  than
                                58,614,200   146,535,500      293,071,000   732,677,500     1,465,355,000        1,465,355,000

  Percentage Reduction               0.5         0.6                  0.7       0.8               0.9                 1.0




Schedule LTI3, 1 April 1992: Long Term Interruptible Gas-contract period 10 to 15
years
(ii)    Standard Terms of a Long Term Interruptible Gas Contract: Gas will be supplied under a standard
        contract, on the basis that the supply is taken for not less than 10 and not more than 15 Contract Years to a
        Customer wishing to consume gas at premises in its ownership or occupation at which its Nominated
        Consumption of gas must be in excess of 1,465,355 MWh per Contract Year at the premises. Each
        Customer (including its affiliate companies) is limited to a maximum of 15,386,277.5 MWh Nominated
        Consumption in aggregate under this Schedule and any previous Long Term Interruptible Schedules,
        which is equivalent to a maximum actual consumption of 18,668,622.7 MWh.

             The earliest start date is 1st October 1996 and the latest start date is 30th September 1997.

           Under the standard contract terms the supply of gas will be interruptible for a minimum period of 7
        days and a maximum period of 55 days in each Contract Year. The periods of interruption, which will
        occur at British Gas' discretion, may or may not be continuous.

            The Basic Scheduled Reference price for all quantities of gas consumed under a Long Term
        Interruptible Gas contract will vary in accordance with the specific type of escalation terms chosen by the
        Customer. These choices are set in Table 1.
TABLE 1 Long Term Interruptible Gas


  Escalation Type A                                               B                                        C

  Indexation 15 Gas Oil                      20 Gas Oil                               25 Gas Oil
    %       15 Heavy Fuel Oil                20 Heavy fuel Oil                        25 Heavy Fuel Oil
            35 PPI                           30 PPI                                   25 PPI
            35 Electricity or Coal           30 Electricity or Coal                   25 Electricity or Coal

  Basic Scheduled Reference Price (pence per kWh)

                      0.723                                     0.706                                    0.699




Schedule LVST1, 1 April 1992: Large Volume Short Term Interruptible Gas-contract
period six months
(ii)    Standard Terms of a Large Volume Short Term Interruptible Gas Contract
        Gas will be supplied under a standard contract, on the basis that the supply is taken for not more than 6
        months to a Customer wishing to consume gas at a premises in its ownership or occupation at which its
        Nominated Consumption of gas for the period chosen must be not less than 1,025,748.5 MWh and not
        more than 4,396,065 MWh at the premises, the consumption starting not earlier than 1st January 1992 and
        finishing not later than 31st October 1993 and being taken under a profile of hourly and daily consumption
        agreed with British Gas.

        No Customer may enter into more than one contract under this Schedule and no supply may be taken
        under such contract in respect of any premises which are or become the subject of a contract for the supply
        of Interruptible gas under any British Gas FI or LTI price Schedule.




                                                                      323
Under the standard contract terms the supply of gas will be interruptible for a minimum period of 7 days
and a maximum period of 45 days during the contract. The periods of interruption, which will occur at
British Gas' discretion, may or may not be continuous.

The Basic Scheduled Reference Price for all quantities of gas consumed under a Large Volume Short Term
Interruptible Gas contract will be as follows:-

                        Indexation               Basic Scheduled
                        %                        Reference Price
                                                 (pence per kWh)
                        25 Gas Oil
                        25 Heavy Fuel Oil        0.734
                        50 PPI




                                               324

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:6
posted:4/23/2009
language:English
pages:10