Demand reduction during a Winter Cashback Event is measured by taking the Actual Metered Volume during the period, and subtracting the calculated Baseline Value. The Baseline Value calculation is a bit complicated but is essentially the 10-day average consumption within the event period, with an in-day adjustment based on consumption during the three hours one-hour prior to the event. The methodology is complex and can be found here.
Please see simple examples below for three different customers with the same metered volume during the event, and the same unadjusted baseline, but with different in-day adjustments:
Example 1:
· 0.5 kWh consumed during the 5-6pm event period
· 10kWh consumed during 5-6pm period over the last 10 weekdays, so 1kWh unadjusted baseline
· Average consumption during 1-4pm period on the day of the event was the same as the average in that 1-4pm period over the last 10 days > no adjustment needed
· Calculated demand reduction = 0.5kWh – 1kWh = -0.5kWh
· Calculated revenue = 0.5kWh x £3 = £1.50
· Calculated payment to customer = £1.50 x 80% revenue share = £1.20
Example 2:
· 0.5 kWh consumed during the 5-6pm event period
· 10kWh consumed during 5-6pm period over the last 10 weekdays, so 1kWh unadjusted baseline
· Average consumption during 1-4pm period on the day of the event was 0.5kWh higher than the average in that 1-4pm period over the last 10 days, so unadjusted baseline is adjusted up by 0.5kWh to 1.5kWh
· Calculated demand reduction = 0.5kWh – 1.5kWh = -1kWh
· Calculated revenue = 1kWh x £3 = £3
· Calculated payment to customer = £3 x 80% revenue share = £2.40
Example 3:
· 0.5 kWh consumed during the 5-6pm event period
· 10kWh consumed during 5-6pm period over the last 10 weekdays, so 1kWh unadjusted baseline
· Average consumption during 1-4pm period on the day of the event was 0.5kWh lower than the average in that 1-4pm period over the last 10 days, so unadjusted baseline is adjusted down by 0.5kWh to 0.5kWh
· Calculated demand reduction = 0.5kWh – 0.5kWh = 0kWh
· Calculated revenue = 0kWh x £3 = £0
Calculated payment to customer = £0 x 80% revenue share = £0
