The Challenge

Gas Networks Ireland (GNI), and its predecessor companies, are required to have their actions in balancing the Irish transmission system and in purchasing shrinkage gas audited every year. This is to ensure that the apportionment of costs and the disbursement of residual sums were properly calculated in accordance with shipper off-takes and the rules of its Code of Operations.

Our Solution

IPA has been commissioned to carry out this audit for each of the past twelve gas years (up to and including 2015/16). This audit is carried out under the terms of Section 2.5.3 of Part E of the Code of Operations to ensure compliance with GNI’s regulatory responsibilities.

The services provided by IPA include:

  • Checking GNI’s calculations of shipper imbalances and the application of correct prices for imbalance volumes, taking account of tolerance thresholds and GNI’s contract for purchasing balancing gas;
  • Checking shipper invoices, identifying errors and developing recommendations for modifications to GNI processes and systems;
  • Checking GNI’s calculations in relation to shrinkage gas usage and the apportionment of shrinkage gas costs amongst shippers in accordance with off-take volumes;
  • Checking GNI’s disbursement account relating to shrinkage gas costs and checking refunds/additional payment due from/to shippers;
  • Reconciling shipper invoices with prices paid by GNI for shrinkage gas, according to GNI’s contract with its shrinkage gas provider; and
  • Developing general recommendations in relation to GNI’s systems and processes.