Revised Tender Timescale for DN Interruption Arrangements Transmission Workstream 6th September 2007

Background Mod 0090 – Revised DN Interruption Arrangements Ofgem decision 15 March 2007 Implementation Date 1 April 2008 New regime significantly different from existing regime DNs determine interruption requirements three years ahead (e.g. Feb 2008 for 2011 onwards) DNs publish interruption requirements (May 2008) Users value interruption - bid into DN tender process DNs select bids (offers) based on interruption requirements Successful Users receive payment for being interruptible Transition Arrangements in place to 2011 (based on existing arrangements)

Present Timescales Mar Apr May Jun Jul Aug Sep Oct Site Eligibility Notification Apply for NTS capacity Tender Opens Tender Closes NTS capacity results Publish Requirements Notify Results Issue: Present timescales allow only short amount of time to conduct analysis on interruption bids and analyse and apply for NTS Exit Capacity

Draft Mod Proposal Timescales Mar Apr May Jun Jul Aug Sep Oct Tender Opens Tender Closes Apply for NTS capacity Site Eligibility Notification NTS capacity results Notify Results Publish Requirements

Customer Concerns Distribution w/s 23/08/07 Revised timescales overlap with April customer contract renewal process Squeezed shipper timeframes for shipper system testing, comms with consumers etc NTS able to move NTS Exit booking window ? No !

Possible way forward Mar Apr May Jun Jul Aug Sep Oct Tender Opens Closes Apply for NTS capacity Site Eligibility Notification NTS capacity results Publish Requirements Notify Results Retain tender timescales – move notification of results to end July

Proposed Mod Timescales Discuss at Workstreams Distribution 23 Aug 07 Transmission 6 Sept 07 Mod Panel 20 Sept 07 DMR Issued 27 Sept 07 Close-out 18 Oct 07 FMR 15 Nov 07 Ofgem Decision 1 Dec 07