The value of accurate demand forecasting

Shippers/Suppliers need to provide nominations to gas transporters for the amount of gas they expect to provide to customers on a daily basis.  Improved demand forecasting reduces exposure to imbalance charges and the risk of having to buy or sell on the spot market during unfavourable conditions.  Improved medium term forecasting means better decisions can be made when buying longer term contracts and optimising the use of storage facilities.
For Transporters accurate forecasts are a key factor in ensuring security of supply. By understanding where gas demand is required on the network operating costs can be significantly reduced.  Improved utilisation of the transmission networks means that spare capacity can be sold to other pipeline users to maximise revenue.
Distribution companies have similar requirements to Transporters in terms of safety and security of supply and efficient network operations.  In addition, Distributors may need to nominate their demands from a Transporter and will need to avoid imbalance penalties.