Transmission Workgroup – 1st December 2011 Removing the restriction on the Users’ application quantity for Annual NTS Exit (Flat) Capacity Transmission Workgroup – 1st December 2011 Transmission Work stream 2 December 2010

Background Modification 0290 (implemented July 2010) Facilitated the release of Annual NTS Exit (Flat) Capacity in excess of the unsold levels at National Grid NTS's discretion. UNC (ref B Annex B-1 3.1 f ii) states that the amount of a capacity application for Annual NTS Exit (Flat) Capacity may not be "greater than the Remaining Available NTS Exit (Flat) Capacity”. Restricts the quantity of Annual NTS Exit (Flat) Capacity which Users can individually apply for. Could limit the quantity of discretionary Annual NTS Exit (Flat) Capacity released to the market. Does not reflect the intent of Modification Proposal 0290. For the July 2011 Annual Application Window Users were advised that National Grid NTS would not apply the above UNC provision.

Solution Raise a Mod proposal to remove aforementioned provision from UNC:

Proposed Approach Mod proposal Modification proposal to be submitted to the December ‘11 Modification Panel Aim is to have a permanent resolution in place prior to the July 2012 Annual Application Window. Options: Proceed directly to consultation? Refer to [one] workgroup to complete workgroup report? Considered CtM but change to UNC would be more than cosmetic (i.e removal of a paragraph), CtM normally used for more cosmetic changes.