Open Letter - Summary of Responses Transmission Planning Code Workshop 1 3rd April 2008

Introduction National Grid Gas (NGG) has a new licence obligation to introduce a Transmission Planning Code by 1 October 2008 that will “cover all material technical aspects relating to the planning and development of the pipe-line system…which may have a material impact upon persons connected to or using (or intending to connect or to use) the pipe-line system” Aim is to improve transparency of NTS planning process NGG published open letter on 7 March 2008 inviting views on the scope of Transmission Planning Code document

Draft Scope Proposed in Open Letter Legislative guidance documents e.g. IGE recommended practice documents Planning legislation and consents process e.g. Implications for investment lead times National Grid policies relevant to planning and development of NTS e.g. assessment of new loads, design of NTS pipelines and installations Network Analysis techniques e.g. considerations for investment planning, how physical capability is determined Supply and Demand Outlook e.g. how TBE forecasts are used in investment planning

Responses 4 non-confidential responses received from E.ON Centrica Energy RWE npower Scotia Gas Networks Broad support for the principles of transparency in network planning that will be delivered by the Transmission Planning Code (TPC)

Update of Transmission Planning Code Responses queried how and when the TPC should be updated UK and EU Legislative updates/proposals The TPC will be revised after relevant legislation is implemented or updated, as NGG is required to comply with the TPC that is in force Informal updates and discussions through workshops can be used to develop industry understanding of issues and likely impacts e.g. on investment lead times Governance process TPC modifications will be governed by the process set out in NGG’s GT Licence for the NTS

Information within TPC (1) Responses queried the detailed information required in the TPC Publication of National Grid NTS Policies The TPC will contain information on the NTS planning process which will include appropriate planning policy information Publication of network model data and results The TPC is intended as a framework document to describe planning processes under Special Condition C11 of the GT Licence The Network Model will be consulted on as part of NGG’s obligations under Special Condition C24

Information within TPC (2) Practical implications of legislation The TPC will describe how legislation affects the planning process including how lead times are impacted The TPC will describe the legislative background to NGG’s Safety Case for the NTS Supply/demand uncertainty The TPC will describe how uncertainties in supply and demand scenarios presented in the Ten Year Statement are addressed in network planning and development Investment Drivers The TPC will describe how TBE information and user commitment signals are each used to drive investment

Timeline (2008) March April May June July Aug Sept Oct Nov... Implementation Development 7 March Open letter inviting views on scope by 21 March 2008 April/May Industry discussions on draft document June/July Formal consultation (28 days) Aug/Sept Authority considers consultation report 1 October 2008 target date for implementation