Presentation to the BSC Panel Significant Code Reviews (SCRs): Process and potential early candidates Presentation to the BSC Panel 8 July 2010

On track to implement the CGR by the end of the year Licence modifications made 5 July Code modifications raised during July/Aug Licence and code modifications to have full effect 31 December We have committed in the corporate plan to consult on SCRs in Q2 Note that this commitment was made at a time when we considered that all licence modifications would have immediate effect. We have provided a ‘period of grace’, such that licence obligations do not have full effect until 31 December 2010 in order to avoid a potential governance vacuum with respect to charging methodologies. Begin consultation on identifying SCR candidates, timescales and appropriate process

Key elements of process 2010/11 only - Ofgem to consult on initial SCR candidate list on standalone basis (Q2 2010) 2011 onwards - potential SCR candidates consulted on through the Corporate Planning exercise SCR selection will be through open, inclusive and accessible consultation Launch of SCR through a statement Scope, reasons, impact assessment of time/cost, start date Generally expect this phase to take no longer than 12 months

Overview of the SCR process

Key criteria against which to assess potential SCR candidates Matter wholly or mainly given effect through relevant industry code Significant in relation to our statutory duties, i.e. impacts on competition and/or energy consumers, on sustainable development, security of supply; and/or Significant cross-code, code-licence impacts

We seek Panel members views… Any thoughts are welcome, but in particular: What topics should we be considering? The proposed process and timetable appropriate? This is, at this stage, an informal sounding – we would welcome further discussion with Panel as part of the consultation process