Project Nexus Gas - Smarter Business

Project Nexus Gas: Where We are Now and Where We are Going

A landmark infrastructural change to the UK’s gas network called Project Nexus was successfully implemented on 1 June 2017. Save for those in the energy industry, few noticed the change (something which speaks to the thorough preparations to minimise the effect on consumers), yet Project Nexus introduces a number of benefits which will have an effect on the industry.

Introduction

Since the 1990s, the UK’s gas network has been administered by XoServe through their UK Link system. Project Nexus largely came about in anticipation of the implementation of smart and advanced meters and effective processing of the real-time data flow to meet current and anticipated market requirements. Project Nexus yields a number of benefits by virtue of additional available data and this is being used to implement changes to benefit the industry. Overseen by Ofgem and PwC, the switch from old system to new took place between 23 and 31 May with normal service resuming by 6 June.

Why was Project Nexus necessary?

With the nationwide roll-out of smart meters, the Link System faced the inability to process real-time data flow. The upgraded link system, in addition to having favourable consequences in the form of efficient communications within the gas network and a streamlined settlement procedure, offers a platform better suited to future changes within the gas industry and a smooth experience from supplier to consumer. As participants update their IT systems, these will work with the new XoServesystems for a better all-round experience.

Effects

Ogfem had four criteria by which it was to manage the transition from old system to new:

  • industry requirements met
  • positive customer experience
  • stability of the new system
  • sustainability of the new system

Energy suppliers could not communicate with XoServe and this appears to be the source of the light delays consumers may have experienced when switching gas suppliers during the changeover period.

Looking ahead

The long-term effects of Project Nexus stand to benefit the industry. The introduction of new settlement classes is anticipated to streamline the settlement procedure and make for fairer and more predictable invoicing. Furthermore, independent gas transporters (who are responsible for maintenance of networks where mains gas is unavailable) are now able to communicate more effectively with the gas network, resulting in cost savings and improved service standards for switching and other functions.

In addition to this, the new system has seen a change in how metered annual consumption is calculated, with XoServe now being able to provide more accurate figures calculated on a month-by-month basis depending on the settlement clause and a meter reading being provided. Further, the new system gives a more accurate view of unidentified gas as a result of changed calculation of same once meters are individually settled in conjunction with the new monthly AQprocess.

Our Smarter Business consultants have their fingers on the pulse of changes within the gas industry and what this means for your business. Contact us to discuss strategy, invoicing, and how your business stands to benefit from partnering with us for all of your energy and gas requirements.

Source:

Ofgem