Ofgem Formally Relaxes Accuracy Requirement for Calorific Value Determining Devices
The new accuracy standard allows for the broader deployment of CUI Global's unique GasPT device throughout the UK and Western Europe.
HOUSTON, April 24, 2017 /PRNewswire/ -- CUI Global, Inc.'s (NASDAQ: CUI) wholly-owned energy subsidiary, Orbital Gas Systems Ltd. (Orbital), has received notification that, effective April 13, 2017, the Gas and Electrical Market Authority (Ofgem), the UK's energy regulator and internationally recognized energy authority, had formally relaxed the accuracy requirement of Ofgem-approved CVDDs to 0.2 MJ/m3 (approximately 0.5%).
The decision comes after Ofgem published an Open Letter dated 23 November 2016, seeking "Consultation on relaxing the accuracy requirements of Calorific Value Determining Devices". In that letter, Ofgem stated that in response to "the Energy Networks Association consultation on Reducing Costs and Removing Barriers for Low Flow Entry Sites," it (Ofgem) would consider any "robust, transparent, quantitatively argued proposal which is of sufficient quality."
Such a proposal was received by Ofgem from "Northern Gas Networks (NGN) which proposed a new CVDD, the GasPT2, and the relaxation of the current accuracy requirements to 0.2 MJ/m3 (approx. 0.5%)." The NGN proposal was accompanied by "the GasPT2 Technical Note to Energy Regulators on behalf of Orbital Gas Systems, UK in support of the approval of the GasPT2 CVDD." See, Open Letter.
CUI Global's president and CEO, William Clough, said, "Formal recognition by an organization as well-respected and well-recognized as Ofgem evidences growing industry adoption of our GasPT solution and further cements its capability to provide accurate fiscal monitoring and gas quality analysis across a broad spectrum of natural gas applications. We are extremely gratified by this regulatory change as it will allow our energy division to more broadly market and sell our solution – smaller, faster and more cost-effective than competing technologies – throughout the UK and Western Europe."
After receiving and considering seven written responses from industry participants, Ofgem found that, "the change is ultimately likely to provide users with greater choice by encouraging the development and adaptation of alternative technologies and introduction of innovative ideas and methodologies that are currently excluded by certain existing Ofgem approval parameters." Ofgem then held:
The Authority has therefore decided that with effect from the date of this letter, the accuracy requirement of Ofgem-approved CVDDs is 0.2 MJ/m3 (approx. 0.5%).
The accuracy relaxation in principle permits Orbital's proprietary GasPT CVDD for use across the entire UK gas network at regulated measurement points, such as high pressure metering offtakes from the national transmission system feeding the gas distribution system, bio-methane network entry sites as well as the anticipated shale gas connection points.
Orbital's vice president of sales (UK), Neil Stuchbury, said, "We are exceptionally pleased with Ofgem's recognition of this innovative solution and support of the wider industry afforded in this consultation, as the device at the forefront is GasPT. Within the UK, regulated CVDDs are utilized at over 150 locations to assess the CV of gas entering or transferring between networks. In real terms, this equates to potentially providing energy data to circa 17 million domestic, industrial and commercial customers. This is an historic change by the UK regulator, having supported the previous accuracy requirements for more than 40 years, and a change we are very proud to have been at the heart of."
Note: The formal decision and regulatory change can be found on Ofgem's website at Ofgem Decision Letter.
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .
CUI Global, Inc. is a publicly traded company dedicated to maximizing shareholder value through the acquisition and development of innovative companies, products and technologies. From Orbital Gas Systems' advanced GasPT platform targeting the energy sector, to CUI Inc.'s digital power platform serving the networking and telecom space, CUI Global and its subsidiaries have built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. But most importantly, a commitment to conduct business with a high level of integrity, respect, and philanthropic dedication allows the organization to make a difference in the lives of their customers, employees, investors and global community.
For more information please visit www.cuiglobal.com.
About Orbital
Orbital Gas Systems (Orbital), a CUI Global Company, is the leader in innovative gas solutions, having more than 30 years of experience in design, installation and the commissioning of industrial gas sampling, measurement and delivery systems. Operating globally to energy, power and processing markets, Orbital manufactures and delivers a broad range of applications including environmental monitoring, gas metering, process control, telemetry, gas sampling and BioMethane.
For more information please visit www.orbitalgas.com.
Important Cautions Regarding Forward Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.
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