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Ofgem formally relaxes accuracy requirement for Calorific Value Determining Devices

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LNG Industry,

Orbital Gas Systems Ltd (Orbital), has received notification that, effective 13 April 2017, the Gas and Electrical Market Authority (Ofgem), the UK’s energy regulator and internationally recognised energy authority, had formally relaxed the accuracy requirement of Ofgem-approved CVDDs to 0.2 MJ/m3 (approximately 0.5%).

The decision comes after Ofgem published an Open Letter dated 23 November 2016, seeking “Consultation on relaxing the accuracy requirements of Calorific Value Determining Devices.”  In that letter, Ofgem stated that in response to “the Energy Networks Association consultation on Reducing Costs and Removing Barriers for Low Flow Entry Sites,” it (Ofgem) would consider any “robust, transparent, quantitatively argued proposal which is of sufficient quality.”

Such a proposal was received by Ofgem from “Northern Gas Networks (NGN), which proposed a new CVDD, the GasPT2, and the relaxation of the current accuracy requirements to 0.2 MJ/m3 (approx. 0.5%).” The NGN proposal was accompanied by “the GasPT2 Technical Note to Energy Regulators on behalf of Orbital Gas Systems, UK in support of the approval of the GasPT2 CVDD.”

CUI Global’s president and CEO, William Clough, said, “Formal recognition by an organization as well-respected and well-recognized as Ofgem evidences growing industry adoption of our GasPT solution and further cements its capability to provide accurate fiscal monitoring and gas quality analysis across a broad spectrum of natural gas applications. We are extremely gratified by this regulatory change, as it will allow our energy division to more broadly market and sell our solution – smaller, faster and more cost-effective than competing technologies – throughout the UK and Western Europe.”

After receiving and considering seven written responses from industry participants, Ofgem found that, “the change is ultimately likely to provide users with greater choice by encouraging the development and adaptation of alternative technologies and introduction of innovative ideas and methodologies that are currently excluded by certain existing Ofgem approval parameters.”  Ofgem then held:

The Authority has therefore decided that with effect from the date of this letter, the accuracy requirement of Ofgem-approved CVDDs is 0.2 MJ/m3 (approx. 0.5%).

The accuracy relaxation in principle permits Orbital’s proprietary GasPT CVDD for use across the entire UK gas network at regulated measurement points, such as high pressure metering offtakes from the national transmission system feeding the gas distribution system, bio-methane network entry sites as well as the anticipated shale gas connection points.

Orbital’s vice president of sales (UK), Neil Stuchbury, said, “We are exceptionally pleased with Ofgem’s recognition of this innovative solution and support of the wider industry afforded in this consultation, as the device at the forefront is GasPT. Within the UK, regulated CVDDs are utilized at more than 150 locations to assess the CV of gas entering or transferring between networks. In real terms, this equates to potentially providing energy data to circa 17 million domestic, industrial and commercial customers. This is an historic change by the UK regulator, having supported the previous accuracy requirements for more than 40 years, and a change we are very proud to have been at the heart of."

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