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Chart of the Week

2018

UIG UNC SOS

Ed Reed Head of Research

Our new favourite subject, unidentified gas (UIG), continues to create issues for shippers and suppliers alike. The industry has been aware that since new gas settlement arrangements were introduced in June 2017 the UIG process has been problematic. The nub of the issue is that on any given day initial allocation of UIG volumes can range between -15% and +25% of all gas flowing through the local distribution networks. This is patently absurd. The commercial impact is that shippers are faced with unpredictable costs/ receipts, which will then flow as a risk premium to suppliers and ultimately customers. It is particularly difficult ...

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