1. Draft Modification Proposal: Population and Maintenance of Market Sector Code within Sites & Meters Simon Trivella –25 th February 2010 Distribution Workstream U P D A T E

2. Background – Market Sector Code (MSC) Field within Sites and Meters Can hold the following values: –“D” for domestic –“I” for Industrial & Commercial Population is Mandatory on Confirmations (since 2001) Can be updated using bespoke file (T73)

3. Background – Market Sector Code (MSC) Blank population (as of 27 th July 2009) –Approximately 7,000,000 (~33% of all Supply Points) –Blank population is reducing slowly (<0.5% per month) Extensive analysis presented –Market Differentiation on 4 th August 2009

4. Background – Market Sector Code (MSC) References to “domestic” and “non-domestic” –The Gas Act –Gas Transporter Licence (various conditions) –Gas Supplier Licence (various conditions) –Gas Shipper Licence (various conditions) –The Gas (Standards of Performance) Regulations 2005 & A2008 –Uniform Network Code (TPD G & TPD J)

5. Background – Market Sector Code (MSC) References to “domestic” and “non-domestic” –The Gas and Electricity (Consumer Complaints Handling Standards) Regulations 2008 –The Consumers, Estates Agents and Redress Act 2007 Complaint Handling Standards 2008 –The Electricity & Gas Carbon Emissions Reduction Order 2008 –The Supply Point Administration Agreement (SPAA) Detailed summary presented at Workstream (10 th Sept 09)

6. Issues “Gap” in Supplier/Shipper Licence provisions –Condition 17 (Mandatory exchange of information) 17.9 Requirement to inform Shipper if premise is domestic or non-domestic within 3 days of becoming relevant Supplier 17.10 Requirement to inform Shipper if premise changes from domestic to non-domestic and vice versa 17.11 For the above, if the Supplier is the Shipper then the Supplier must inform the relevant Transporter

7. Issues “Gap” in Supplier/Shipper Licence provisions –No corresponding Shipper obligation to inform Transporter when they are not also the Supplier –Obligation is not retrospective Does not impact on blank MSC data

8. Issues No UNC requirement for accuracy or maintenance –MSC only has to be populated at confirmation stage Compliance (Regs, UNC etc) Inability to report on ‘market sectors’ Restricts industry development? –Modification Proposal 0253 / Data Protection Act –Ability for greater Market Differentiation

9. Proposal UNC obligation on Shippers –Population of Market Sector Code flag –Accuracy of submitted Market Sector Code flag –Maintenance of Market Sector Code flag

10. Proposal Implementation –Blank MSC flags to be populated –Incorrect MSC flags to be corrected –Transition period needed? Potential for 7,000,000 T73 files or Confirmations Potential “data-fix” approach Shipper input required –Non User Pays (subject to Implementation technique)

11. Proposal Update Transition Period of [6] months T73 files to be used in transition period –Limit to be placed on file size (tbc) Shippers obligated to: –Update incorrect MSC entries; and –Populate any “D” LSPs and/or any “I” SSPs

12. Proposal Update Blank MSC Shipper portfolio report –Prior to transition period (at implementation) –[3] months / halfway in to transition period –1 month from end of transition period “Suspect” MSC entry report (if required) –Existing potential anomalies flagged to Shipper –Provided prior to transition period

13. Proposal Update After Transition Period –All populated entries correct (Shipper obligation) –Blanks can only be “D” SSPs or “I” LSPs (Shipper obligation) Remaining blanks to be populated by xoserve –SSPs will be “D” and LSPs will be “I” User Pays Service and User Pays Charges apply Development/Implementation/Service costs –Payable based on Shipper’s blank MSC population

14. Proposal Update Charging Example 1 –Indicative costs of [£150k] (tbc within Modification Proposal) –7,000,000 blank MSCs –£0.02 per blank MSC update Charging Example 2 –150,000 blank MSCs –£1.00 per blank MSC update

15. Next Steps Draft Modification Proposal to be published –Shipper feedback on Proposal (incl. Implementation) –March Modification Panel Consultation

16. Draft Modification Proposal: Population and Maintenance of Market Sector Code within Sites & Meters Simon Trivella –25 th February 2010 Distribution Workstream U P D A T E