1. BSC Panel 202 13 September 2012

2. Report on Progress of Modification Proposals Dean Riddell 13 September 2012

3. National Grid Update on Energisation Issues Duncan Burt 13 September 2012

4. Transmission Company Update  Update on the rectification plan - January and June ’12  No further failures  Oversight team embedded  Process aligned with generation connections  Improved liaison between Transmission Company / Elexon  Workshop Planned on 26 th October 2012

5. Transmission Company Update  Established ‘Tracker’ of Registrations  Principle of “No surprises”  Annual Review in Jan/Feb when plan handed over  Regular updates from construction / operational teams  Weekly teleconferences to review and coordinate actions  Improved data submission - e.g. draft submissions, forms with accompanying Single Line Diagrams

6. Transmission Company Update  Improved awareness and training  Engineering bulletin issued on 19th June to raise awareness and proposed changes to working practices  Two Transmission Procedures affected  TP131 (Settlement Metering) revised and updated  TP106 (Equipment Commissioning) consequential updates  Both updates to the TPs are currently in draft form for final review meeting on 18 th September  If no significant issues raised both will be issued formally within weeks

7. Transmission Company Update  Working Better  Oversight team is key  Single point of contact and escalation route  Improved awareness across the Transmission Company  Senior Management committed to review for continuous improvement  Further improvements  Change in policy to simplify installations  Propose to introduce unique code into ‘TOGA’ to simplify automated monitoring of outages

8. Minutes of Meeting 201 & Actions Arising Adam Richardson 13 September 2012

9. Chairman’s Report BSC Panel Andrew Pinder 13 September 2012

10. 202/01 ELEXON Report Peter Haigh 13 September 2012

11. 202/01 ELEXON Report Smart Update Chris Rowell 13 September 2012

12. 11 Expected in the Autumn Smart Energy Code (initial sections legally drafted) DCC Licence (final version) Smart Metering: Consultations Smart Metering Equipment Technical Specifications (SMETS) v2 Home Area Networking (HAN) solution the communications hub requirements responsibilities equipment assurance 8 Oct Consequential Changes (SVG Paper)

13. 12 Smart Metering: DCC Licence Award Draft PQQ issued on 31 Aug Information regarding the DCC, the licence application process & evaluation process for the stage. Draft Qualification Questionnaire Draft PQQ issued on 31 Aug Information regarding the DCC, the licence application process, & evaluation process for the stage. Draft Qualification Questionnaire Expected Timetable (dependent on Prohibition Order & Licence Application Regulations) ~ 3 month deferral of start short formal PQQ process BUT early sight of draft ~ 3 month deferral in grant D+1 SP signing no change to start of roll out

14. 13 Smarter Markets: The Policy Reviews 2011-12 Q. When we have smart metering, how do we improve the consumer experience? Change Programme 4 Policy Reviews 8 Propositions 2012-132014 + Scoping Report Approach & Plan Review of Policy not Process Impact on 2013/14 Business Plan? Senior Advisory Group P202/06: Scope for review of settlement

15. 14 Smart Grids: LCNF Projects LCNF: Low Carbon Network Fund Running from 2010 to 2015 - up to £500m - support to DNO sponsored projects - addressing new technology, operating & commercial arrangements – sharing findings First Tier Small projects - partial recovery of funding – up to £16m per year Second Tier Flagship projects - annual competition - up to £64m per year Discretionary Award successful completion & exceptional projects - up to £100m over the 5 years Technologies & equipment Systems operation Consumer behaviour Data monitoring & analysis Market models

16. 15 Smart Budget MJJ ASO A NDJ FM O Backfill Memberships Conferences (Analysis) £ 300K £ 131K £ 1,200 K

17. Distribution Report David Lane 13 September 2012

18. Transmission Report Ian Pashley 13 September 2012

19. Ofgem Report Dora Ianora 13 September 2012

20. Report from the PAB (Quarterly Update) Andrew Colley 13 September 2012

21. 202/04 Proposal to hold the 2013 ISG & SVG meetings on the same day Kathryn Coffin 13 September 2012

22. 21 Hold 2013 ISG and SVG meetings on same dates Start with ISG, then shared business, then SVG Use indicative timed agendas to help members plan travel Provide room for SVG Members to work, in case ISG overruns If bumper agenda, start with shared business and then split into different rooms Will still be separate Committees – existing Terms of Reference continue to apply Suggestion

23. 22 Why? ISG131 21/12 132 24/01 133 21/02 134 27/03 - 24/04 135 29/05 136 26/06 - 24/07 137 28/08 Decision papers 6 (+ 1) 24202 (+ 3) 306 (+ 1) Shared business 14%Zero25%50%-40%33%-57% SVG131 03/01 132 31/01 133 28/02 134 03/04 135 01/05 136 06/06 137 03/07 138 31/07 139 04/09 Decision papers 386446 (+ 1) 2212 Shared business 33%Zero17%25%Zero43%Zero50% Papers in brackets were ex-committee Examples of shared business: CPs or Metering Dispensations with both CVA/SVA impacts

24. 23 Committee views ISG – Against (unanimous)SVG – For (unanimous) Some confidential Committee items Volume of business is variable Future workload could increase No clear start time for SVG Difficult to manage meeting Potential late finish and travel issues for SVG (more time away from office) Already use teleconferencing if low volume of business Little apparent benefit for Parties Parties who monitor/support both Committees prefer spacing out papers No issue with joint business – defer to SVG if SVA; few disagreements Could constrain ability to discuss wider industry matters Supportive of suggestion in principle, subject to practicalities Enthusiastic about bringing Committees together – encourage Panel to explore all options Unless causes excessively late finish, would be more efficient Benefits in discussing joint business together Reduces uncertainty for Parties on whether a joint Change Proposal or Metering Dispensation approved

25. 24 The BSC Panel is invited to: NOTE ELEXON’s paper on the suggested benefits and practicalities; NOTE the views expressed by Committee Members for and against; AGREE whether the 2013 ISG meetings should be held a week later than currently, on the same dates as SVG; and NOTE that, if the Panel adopts this approach, the ISG and SVG can review in 12 months (or sooner if needed) Recommendations

26. 202/05 Panel and Panel Committee Dates for 2013 Nicola Dempsey 13 September 2012

27. 26 The BSC Panel is invited to: APPROVE the proposed dates; and APPROVE their publication on the ELEXON website. Recommendations

28. 202/06 Scope for Review of Settlement David Jones / Justin Andrews 13 September 2012

29. Smarter Markets – review of Settlement Reform »Panel agreed to provide a report to Ofgem – how it would undertake a review of Settlement in a smart world »Establish an advisory group: »Settlement Reform Scoping Group (SRSG) »Membership drawn from existing committees with varied industry backgrounds »Terms of Reference (includes outline of report content)

30. 29 Timetable

31. 30 The BSC Panel is invited to: AGREE to the creation of the Settlement Reform Scoping Group (SRSG) and the group Terms of Reference (Attachment 1); AGREE to the chairmanship and membership of SRSG (Appendix A); and AGREE the plan for delivering the scoping report (Appendix B). Recommendations

32. Summary of Consultation on BSC Service Manager Contract Principles Adam Richardson 13 September 2012

33. 32 Appointing a BSC Service Manager Work StreamResponsibility 1. Modification P284: Enables BSCCo to outsource work to a BSC Service Manager. The Authority makes a determination following a BSC Panel recommendation. 2. BSC Service Description : Defines the services capable of being outsourced. The BSC Panel is responsible for approving the BSC Service Description for use. 3. Contract: Negotiating and agreeing appropriate Contractual Provisions required for outsourced arrangement with a BSC Service Manager. The BSCCo Board is responsible for putting in place appropriate commercial and contractual provisions.

34. 33 Should a case be made for outsourcing and appropriate commercial and contractual terms developed, the BSC Service Manager Contract will be provided to the BSCCo Board for review and approval prior to being agreed. Or If a case is not made for outsourcing or if commercial and contractual terms cannot be agreed which satisfy the principles established by the BSCCo Board the BSC services will not be outsourced and will continue to be provided by BSCCo. Ultimately

35. 34 Consultation Respondents National Grid Electricity North West Ltd Scottish Power Group Drax Power Ltd EDF Energy Centrica E.ON SmartestEnergy Ltd RWE npower Eggborough Power Ltd TMA Data Management Ltd EnAppSys Ltd 1 Aug 3 Sep Consultation 6 Sep Workshop Peter Bolitho – E.ON Andy Colley – SSE David Lane – Clear Energy Ian Pashley – National Grid Colette Baldwin – E.ON Tim Collins – Centrica Gemma Hunt – Smartest Cem Sueyman – Drax Mari Toda – EDF Lisa Waters – WatersWye 12 Responses 49 Parties, 9 Non-Parties

36. 35 Summary of Consultation Responses (1) QuestionYesNoOther 1: Are there any specific discretions, judgements or services currently provided by ELEXON Ltd that you feel it would be inappropriate for BSCCo to subcontract to a service management company? 75- 2: Are the principles set out in Section 4 appropriate for use in underpinning a decision whether to appointment a BSC Service Manager? 723 3: Do you believe the principles set out in section 4 are consistent with Ofgem’s conclusions and prerequisite conditions published in its letter of 30 April 2012? 822 4: Are there any additional principles which you believe the BSCCo Board should use to underpin any outsourcing decision? 75- 5: Do you have any other comments? 75-

37. 36 3 New bullet points within Principles Confidentiality and Data Protection Conflict of Interest Transition Arrangements Additional exclusions under paragraph 3.4 (related to areas of potential conflict of interest) A number of clarifications to Contract Principles Summary of Consultation Responses (2)

38. 37 Many responses identify elements that will flow through into: BSC Service Manager Service Description BSC Service Manager Contract Some comments aimed at operating model and resourcing Comments on “zero Risk” & “all IPR irrespective of commercial viability” Desire for more information on KPIs and Service Levels (to be detailed in contract) Pension liability - avoid crystallising for as long as possible Contract term - preference for 5 years (recognising incentive value in possible extenion options). Summary of Consultation Responses (3) Amendment Details

39. 38 Subject to Approval of P284… Panel Invited to Appoint Panel Observer to: review documentation; advise BSCCo team; and ensure process followed Update the Contract Framework (Contract Principles) Develop Term Sheet Review Business Case against Contract Principles Next Steps

40. Any Other Business 13 September 2012

41. Confidential Business Closed Session 13 September 2012

42. 202/07 ISG & SVG Membership Changes Adam Richardson 13 September 2012

43. 42 The BSC Panel is invited to: NOTE the resignations of Bob Brown as ISG/SVG Industry Member and Mark Field as SVG Industry Alternate APPOINT Edward Hunter as SVG Industry Alternate APPOINT Colette Baldwin as SVG Industry Alternate NOTE that ELEXON has advertised the ISG/SVG Industry Member vacancy and will bring all applications to the October Panel Recommendations

44. 202/08 Appointment of PAB Industry Alternate Adam Richardson 13 September 2012

45. 44 The BSC Panel is invited to: APPROVE Hazel Ward as a Member of the PAB Recommendations

46. Any Other Business 13 September 2012

47. Next Panel Meeting: 11 October 2012 13 September 2012