Decreases in Chargeable Demand Sample Clauses

Decreases in Chargeable Demand. (a) This clause 4.7 applies where the Delivery Point is a Demand Customer Delivery Point. (b) Where a Customer has experienced a permanent and material reduction in its requirements for Gas supply, the User may make a written request to the Service Provider requesting a reduction in the Chargeable Demand for the relevant Delivery Point from which the Gas for that Customer is withdrawn (Reduction Request), provided that: (i) the proposed reduction in Chargeable Demand is nominated in the Reduction Request; (ii) the Reduction Request is received by the Service Provider no less than 12 months after the Demand Reset Date in respect of the current Chargeable Demand for the relevant Delivery Point; (iii) no other requests to reduce the Chargeable Demand for the relevant Delivery Point have been rejected by the Service Provider in the 6 months immediately preceding the date of the Reduction Request; (iv) the Service Provider has not accepted a request to reduce the Chargeable Demand for the relevant Delivery Point in the 13 month period immediately preceding the date of the Reduction Request; (v) the requested Chargeable Demand is less than 90% of the existing Chargeable Demand for the relevant Delivery Point; and (vi) the User provides a letter from the User's relevant Customer setting out the reasons for its reduction in Gas requirements and demonstrating why that reduction is a permanent one, to the Service Provider’s reasonable satisfaction. (c) The Service Provider will provide its reasons in writing and advise whether or not it will consent to a Reduction Request within one month of the date on which it receives such Reduction Request from the User, such consent not to be unreasonably withheld. (d) In considering a Reduction Request, the Service Provider may take into account in addition to the information provided as part of the Reduction Request, any other factors the Service Provider considers relevant, including but not limited to: (i) past patterns of actual Gas consumption at the Delivery Point and reasoned forecasts of expected future demand for Gas at the Delivery Point; (ii) any previous requests to reduce the Chargeable Demand or increase or decrease the MHQ or MDQ at the Delivery Point; and (iii) whether, and if so the extent to which, the proposed reduction will compromise the Service Provider’s ability to recover any capital expenditure the Service Provider has incurred in relation to the Delivery Point (including whether the Service Provider i...
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Decreases in Chargeable Demand. (a) This clause 4.7 applies where the Delivery Point is ato Demand Customer Delivery PointPoints. (b) Where a Customer at a Delivery Point has experienced a permanent and materialsignificant reduction in its requirements for Gas supply, the User may make a written request to JGN requesting a reduction into reduce the Chargeable Demand for the relevant Delivery Point from which the Gas for that Customer is withdrawn (Reduction Request), provided that: (i) the proposed reduction inrequested Chargeable Demand and any reduction in the MDQ and/or MHQ is nominated in the Reduction Request; (ii) the Reduction Request is received by JGN no less than 12 months after the Demand Reset Date in respect of the current Chargeable Demand for the relevant Delivery Point; (iii) no other requests to reduce the Chargeable Demand for the relevant Delivery Point have been rejected by JGN in the 6 months immediately preceding the date of the Reduction Request; (iv) JGN has not accepted a request to reduce the Chargeable Demand for the relevant Delivery Point in the 13 month period immediately preceding the date of the Reduction Request; (v) the requested Chargeable Demand is less than 90% of the existing Chargeable Demand for the relevant Delivery Point; and
Decreases in Chargeable Demand. The basis of charging is asymmetrical in that increases to the Chargeable Demand are automatic (the customer is charged at their ninth highest withdrawal in a historic 12 month period) while reductions are difficult for Users to access. JGN have achieved this through a multifaceted mechanism: 1. A reduction in Chargeable Demand will not be contemplated unless it is greater than 10%. This means that a customer may be overcharged up to approximately 10% on an ongoing basis with no ability to redress this. And 2. Any reductions in Chargeable Demand do not take effect until at least 12 months after they have been requested. Further the decision to accept a reduction in Chargeable Demand appears to be solely at JGN’s discretion with no justification of refusal required. 1 The requirement that the MDQ be at least ten times the MHQ for that Delivery Point. 2 JGN, Access Arrangement, 2005, p3 EnergyAustralia believes the proposed reset mechanism for reductions in Chargeable Demand is flawed and the Chargeable Demand and MDQ should ratchet up and down such that it is always set at the ninth highest withdrawal in any one Day in the preceding 12 months. This would reduce administration for all parties and also be fairer to customers.

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