Assignment Workshop 2 16th September 09, Solihull

Overview Background ROM 1387 ROM 1585 ROM Analysis Explanation Questions

Background National Grid NTS has had a number of discussions with Industry about the concept of NTS Entry Capacity Assignment: “ NTS Entry Capacity assignment entails the transfer of financial liability in addition to the entry capacity entitlement ” National Grid NTS raised 2 Rough Order of Magnitudes (ROMs) with xoserve: EVS1387 EVS1585 Please note that a ROM request is not based on formal systems analysis and is not a replacement for a detailed analysis and must not be taken as a formal quote

ROM EVS1387 – Generic Assignment Process ROM EVS1387 based on the following requirements: User driven (NG or Shipper) Applicable from a future date On an enduring basis Includes both full and partial assignment Assigned NTS Entry Capacity to be tradable Assigned NTS Entry Capacity to be tracked

ROM EVS1585 – As part of Voluntary Discontinuance Deliver National Grid NTS’ UNC obligation To facilitate the voluntary discontinuance of a redundant shipper short-code Requirements of ROM EVS1585 Enable the assignment of long term entry capacity rights as part of an assignment of rights and obligations – not as an assignment of NTS Entry Capacity. The existence of long term entry capacity entitlement and liabilities are assigned to 1 single specified shipper

ROM Process Presented by xoserve

ROM Process Overview (1) A defined method to request and receive appropriate analysis to support the development of industry changes. It has been incorporated into MOD 213. A light process that balances flexibility and control A process capable of aligning to the needs and timelines of industry change processes (subject to resources and priorities)

ROM Process Overview (2) ROM requests should be timed in relation to the state of the proposed change; Likelihood that the change will be supported / funded by the community and approved by the regulator Clarity and stability of objectives, rules and requirements Input needed to initiate ROM analysis; As per ROM template: Documented business objectives Documented business principles Documented draft business rules Performance considerations .i.e. best estimate for… Volumes for transactions / business events Timeframe for transactional purposes

Limitations of ROM exercise (1) Following analysis of the business rules, a number of techniques are used to derive alternate estimates which are then used to specify the range of cost estimates. Techniques include: Rough estimation by experienced solution experts Identification of impacted and new logical functional elements and comparison to the equivalent functional elements for a previous project already costed. The comparison is used to extrapolate a ROM cost for the potential change.

Limitations of ROM exercise (2) The analysis is limited by time and is only a snapshot of xoserve’s understanding of the change at that moment. Consequently, ROM costs are highly indicative; Decisions to proceed to delivery should only be based on detailed cost analysis (DCA) obtained through the MOD 213 process.

Next Steps

Next Steps Industry need to consider options for best fit and discuss within their workgroups Develop business rules, system requirements, funding arrangements (etc) When Industry in accord Submit Draft Modification Proposal Submit request to xoserve for Detailed Cost Analysis (DCA) via National Grid NTS