1. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 1

2. 2 Modification Proposal 0395 26 April 2012 Workgroup

3. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 3 Overview 1.Impact of modification on suppliers’ tariffs 2.The reasons for un-reconciled energy 3.Meter reading performance and strategy 4.Settlements disputes lead times

4. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 4 Impact of modification on Suppliers’ tariffs When setting a tariff RbD Shippers have to: -Estimate how much energy our customers will use -Estimate how much energy we will be allocated through RbD Final allocation does not occur until Y+5 so large levels of uncertainty on RbD allocation until then This uncertainty attracts a risk premium in tariffs We expect a reduction in this risk premium to be reflected in tariffs EDF Energy has quantified this benefit and will share it directly with Ofgem

5. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 5 The reasons for unreconciled energy From our perspective the main cause of un-reconciled LSPs are caused by retrospective updates triggering energy volume adjustments: -Meter exchanges not updated for 3-5 years -Read replacements with no subsequent readings submitted -LSPs being allocated to the incorrect LDZ -Retrospective EUC changes These appear to be within Shippers’ control and we are undertaking initiatives to address this

6. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 6 Meter reading performance and strategy 1.EDF Energy’s meter reading strategy is focused on: -Improving customer experience through accurate bills -Reducing the exposure of our customers to unexpected debits from reliance on estimated meter readings -Ensuring we fulfil our statutory obligations 2.We have numerous strategies and initiatives in place to support this 3.Settlement considerations are therefore a secondary issue when developing our meter reading strategy 4.We will share our detailed meter reading strategy with Ofgem

7. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 7 Settlements disputes lead times 1.In general EDF Energy’s settlements disputes are settled in 1-3 months

8. CONFIDENTIAL - Modification Proposal 0395 © 24 November 2009 EDF Energy plc. All rights Reserved. 8