PN UNC Workgroup Settlement Overview 1st November 2011

Objectives of the Workgroups Determine detailed business requirements & rules for future processing of meter reads and Settlement arrangements Output from workgroup; Process maps Business Requirements Document for future state. Document to provide sufficient definition around business rules to: Enable the proposed requirements to be incorporated in Xoserve’s investment decisions, and Support the raising of any UNC Modification Proposals, if required Monitor & align with latest SMIP position Focus will be on requirements for Project Nexus delivery

Business Issues Raised Business issues around settlement, allocation and meter reading processes were raised during; 1st AMR Workgroup from walkthrough of DME regime The Allocation Principles and Settlement Workgroup During the Project Nexus Consultation (taken from the IRR) These were reviewed at 22/08/11 meeting and agreed either; Resolved & included in the requirements Considered but closed No longer an issue

Scope of Settlement Topic Determination of daily gas offtaken, processing of reads and interaction with subsequent reconciliation Obtain and Validate Meter Reading Submit Meter Reading to GT Determine Daily Energy Offtaken Issue Energy Balancing Invoices Collect/Pay Energy Balancing Invoices Scope of “Settlement” Determine total LDZ Energy Obtain site level energy values Apply ‘Allocation Scaling Adjustment’ (smear) Determine daily energy offtaken

Objectives for Today’s Meeting Complete requirements for Settlement; Approve updated process flows Review updates to the BRD since v0.8 Particularly read validation Review outstanding issues Obtain ‘Approval’ / Workgroup sign off of BRD Agree next steps Re-publish updated version of BRD v0.9 Update Modification 0377? Close ‘Settlement’ topic