XRN 4994
PAFA Contract Extension 2019/20

Summary

Uniform Network Code by Modification 0506V: Gas Performance Assurance Framework and Governance Arrangements introduced the new role of an independent Performance Assurance Framework Administrator (PAFA) to the Gas Industry.  The Administrator’s role is to support the Performance Assurance Committee (PAC) with reporting, risk management and provision of settlement expertise.

The provision of a PAFA service is a CDSP Direct Service under Service Area 3: “Record/Submit Data in Compliance with UNC”.Xoserve undertook a regulated competitive selection process in 2017, with support from Gas Industry participants, and Gemserv was appointed to the role of PAFA on 30 June 2017.  The governance arrangements for PAFA as set out in the “Performance Assurance Framework Document” specify a two year initial appointment period, with the option of a further one year extension.

The initial term of the PAFA expired at the end of June 2019, and after consulting with the UNC Performance Assurance Committee as to whether to extend the contract or make a new appointment, Xoserve negotiated a contract extension with Gemserv.

As the end of the initial two year term approached, Xoserve negotiated the terms of the one year extension.  The scope of PAFA role has increased since the original appointment, with the PAC members requesting more involved of the PAFA in matters relating to Unidentified Gas and related UNC Modification Proposals.  This increase is reflected in the higher costs for 2019/20. 

The alternative option of commencing a new competitive selection would have resulted in a gap in service of around 9 months whilst a procurement was undertaken.