HyDeploy Demonstration

On this page you will find information about the HyDeploy phase 2 demonstration in Winlaton and the processes that are in place to support this.


About HyDeploy

HyDeploy is a partnership between Northern Gas Networks, Cadent, the Health and Safety Executive, Keele University, ITM Power and Progressive Energy.

HyDeploy is carrying out vital demonstrations to show that the gas network can carry a blend of hydrogen with no impact on the customer’s gas supply. It is providing evidence on how customers don’t have to change their cooking or heating appliances to take the blend, which means less disruption and cost for them. It is also confirming initial findings that customers don’t notice any difference when using the hydrogen blend.

The HyDeploy project began with a first phase live demonstration of blended hydrogen and natural gas on part of the private gas network at Keele University campus in Staffordshire.

The second phase of the project involves 670 domestic properties in the Northern Gas network.

 

HyDeploy is being delivered by the HyDeploy Consortium, whose members are Northern Gas Networks, Cadent Gas Limited, the Health and Safety Executive, Keele University, ITM Power and Progressive Energy.

Delivery of HyDeploy is also supported by specialist gas safety testing specialists Kiwa, industry research expert Dave Lander and technical consultants Otto Simon Limited.

The second phase of the HyDeploy project will be in the North East of England and will involve around 670 domestic properties in Winlaton, near Gateshead.

All consumers involved in the HyDeploy project were contacted by the HyDeploy Consortium to explain the demonstration. Residents were asked to book a visit from the HyDeploy engineers to carry out gas safe checks on their gas appliances and gather information on the range of appliances in the demonstration area. The Gas Safe checks were free of charge.

The demonstration in Winlaton was implemented on the 4th August 2021 following HSE approval at the end of July 2021. The demonstration is expected to last for 10 months.

HyDeploy project overview

Find out more about what HyDeploy has been doing at Keele University to demonstrate the feasibility of using hydrogen to heat our homes.

Northern Gas Networks prepares for the demonstration

Joanna Ferguson, Head of Market Services & Regulatory Compliance at Northern Gas Networks, provides an introduction on what Northern Gas Networks is doing to prepare for the demonstration.

 

About the second phase live demonstration

More about the upcoming HyDeploy demonstration in the North East of England in Winlaton, near Gateshead.

Xoserve’s role in this HyDeploy demonstration

Xoserve is working closely with stakeholders across the industry to deliver HyDeploy in a transparent and coherent manner from an operational point of view. It is our role to ensure the data infrastructure underpinning the transformation is fit for purpose and effective – and scalable for similar projects that are coming up further on down the line.

As a Distribution Network Operator, Northern Gas Networks and Cadent require Xoserve, as the Central Data Service Provider (CDSP), to ensure all Meter Point Reference Numbers (MPRNs) included within the second phase of the demonstration, are readily identifiable and have processes and controls in place to protect these MPRNs (and end-consumers) from being adversely impacted for the duration of the demonstration.

Xoserve readies its systems and processes

Andy Szabo, explains Xoserve’s involvement in hydrogen demonstrations and what Xoserve has done to prepare its systems and processes for HyDeploy.

 

Xoserve's role in supporting HyDeploy

A high-level overview of Xoserve's involvement in the HyDeploy Winlaton demonstration and what processes will be changing as a result.

 

Process information for Xoserve customers

Introducing hydrogen into the live gas network may have an impact to the calculation of energy resulting in implications on the Annual Quantity (AQ), procurement and reconciliation charges – meaning process changes for Networks, Shippers and Suppliers.

Managing invoicing and voluntary consumer payments during the demonstration

 

Identifying HyDeploy sites on UK Link

 

The Annual Quantity (AQ) Backstop process

Identifying HyDeploy MPRNs in Data Discovery Platform (DDP)

There are process changes required to ensure a successful outcome of the HyDeploy North East demonstration:

  • An indicator will be applied to UKLink, Data Enquiry System (DES) and Data Discovery Platform (DDP) to provide Gas Shippers and Suppliers visibility of the Meter Point Reference Numbers (MPRNs). included within the demonstration
  • An AQ Backstop date will be applied to all MPRNs in the demonstration from 1st September 2021. This will prevent any changes to the AQ during the demonstration.
  • Voluntary consumer payments will be calculated by Northern Gas Networks. These compensation payments will be issued to the Shipper by Xoserve for passing onto the consumer.
  • All MPRNs are monitored to review performance and manage any unforeseen issues that may arise

There are no impacts to the switching process. Consumers are able to switch Suppliers in the normal manner.

Shippers and Suppliers must understand the process changes and their obligations involved for the affected Meter Point Reference Numbers (MPRNs).

Both Xoserve and Northern Gas Networks are monitoring all activities relating to the MPRNs involved in the demonstration. When notice is received of a change of Shipper or Supplier through the existing industry processes, the new Shipper and/or Supplier will be contacted to talk them through how having a HyDeploy demonstration Meter Point will affect them and what they will need to do differently.

The use of the hydrogen blend will result in a lower Calorific Value (CV) being passed through the consumer’s meter compared to natural gas; the exact calorific value being received by the isolated demonstration area will be monitored for the duration.

More gas will need to pass through the customer’s meter than usual, which may inflate Annual Quantities (AQs).

To ensure the AQs are not impacted, an AQ Backstop date will be applied to the MPRNs, effective from 1st September 2021. The AQ Backstop date prevents any changes in the AQ, even when meter readings are submitted, a revised AQ will not be re-calculated during the demonstration.

Transportation charges will not be impacted as the rate applied will be the Formula Year AQ set as at 1st April 2021 (or the FYAQ set as a result of an AQ Correction request accepted between 1st December and 19th August 2021).

During the HyDeploy demonstration, increased gas consumption may be registered through affected meters. Northern Gas Networks and Cadent have agreed with Ofgem to provide voluntary consumer payments, to offset the increase in consumers' bills during the demonstration.

There should be no change to the charges applied by Shippers to Supplier and Suppliers to consumers. The consumer credit payment will offset any increase in consumers bills during the demonstration.

Northern Gas Networks will submit HyDeploy offset payment information to Xoserve in advance, monthly. Xoserve will then invoice the offset payments to those Shippers with HyDeploy Meter Point Reference Numbers (MPRNs).

A methodology approved by Ofgem is used to calculate the adjustments for each MPRN, this has been agreed with Ofgem.

  • A factor is used to calculate the adjustment based on the AQ for each meter point.
  • The adjustment also uses a seasonal factor (the same used for Demand Estimation Methodology) to ensure any seasonal impacts in the weather are accounted for. The credit payments will therefore reflect the changes in the seasons; winter are likely to be higher credits than in summer (when more gas is consumed).

The credit compensation payment issued on the 10th August will be for the period of August (4th to 31st August). Future payments will be issued at the beginning of each month during the demonstration and will be for that calendar month.

Where there is a Supplier or Shipper changes mid-month, the credit payment will be issued to the Shipper registered of the MPRN on the 1st of the month. The Shipper must submit to the Supplier to pass to the consumer.

It is the Shipper’s responsibility to transfer the HyDeploy offset payments to the relevant Supplier. The Supplier must then credit the relevant customer with the HyDeploy offset payment.

The compensation payments are in line with Schedule 45 - Transmission of Transporter Distributed Payments to Consumers which states that “Where a Supplier receives a payment from a Gas Transporter which is intended for onward transmission to a Consumer, the Supplier shall, within 10 Working Days of receipt, pay or set-off an equal sum”.

The compensation payments are exempt of VAT.

A change in UK Link has been applied to set an indicator against those specific MPRNs that have been approved as part of a HyDeploy demonstration.

The new information held in the UK Link system will be extracted into SAP Business Warehouse (BW) to allow this data to be visible in the Data Enquiry Service (DES); a system that can be accessed via the Xoserve Portal.

For each MPRN within a demonstration, the following new data items will be
viewable in Data Enquiry System (DES):

  • Network Indicator: HYDEP2NGN
  • Network Project Start Date 13h August 2021 (although actual start date was 4th August 2021)
  • Network Project End Date 4th June 2022

A new package is available to Data Discovery Platform (DDP) users, to help them manage the MPRNs which are part of the HyDeploy demonstration area:

Network Management Information (MI) – HyDeploy Data Package

This dashboard focuses on MPRNs within a portfolio which are part of the HyDeploy demonstration). It will specifically focus on portfolio data such as Annual Quantity (AQ), Supplier, Shipper and other Supply Point details. The focus of the dashboards is changes within the portfolio, i.e. when a Supplier or Shipper change takes place, Networks will receive a notification when changes occur.

Through our DDP and our new dashboards, Shippers and Networks can drill down on data at Meter Point Reference Number (MPRN) level, to obtain more insights. Networks will also be able to export and download data if required.

The process will remain the same. Northern Gas Networks will ensure that the additional health and safety checks that are needed, will be carried out on site.

The HyDeploy change was implemented as part of the November 2020 Release, details as follows:


XRN5014 - Facilitating HyDeploy2 Live Pilot

 

Communications

Northern Gas Networks have been in regular contact with all consumers on the HyDeploy demonstration. Engineers and customer liaison personnel are available at the site to monitor and answer any questions from consumers relating to the demonstration.

Consumers are aware that they will receive a credit payment from their gas Supplier.

Suppliers have been issued with a communication advising them of the effective date and their obligation to submit the credit payments onto the consumer, this was issued at the beginning of August to SPAA contacts.

A communication has been issued to all DSC Contract Managers (3rd August 2021) and a further communication to the Shippers registered at the MPRNs (6th August 2021).

This website will continue to be updated as the demonstration progresses.

 

Who to contact

For more information on HyDeploy, please visit www.hydeploy.co.uk

If you have any questions about Xoserve's processes during the demonstration, please visit Help and Support or for questions about Xoserve’s programme to support decarbonisation, please contact Vicki Mustard, Decarbonisation Lead.

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