Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. 21 st February 2012 Workgroup Meeting 0413S - DN Adjustment of notices for the reduction of Enduring Annual NTS Exit (Flat) Capacity

2 “AS IS” PROCESS STEPS A.July Application window  Enduring Annual Flat increase and reduction submissions  DN requests for flex & pressure B.Indicative flex & pressure statements (~mid August)  NTS response to requests – accept or part accept or reject C.DN resubmission for Enduring Annual, flex & pressure (~end Aug)  Flat adjustment only if flex or pressure not fully met in Y+4,5 or 6  Only reasonably adjust Enduring Annual for Y+4,5,6 D.NTS discuss with DNs & finalise by 30 th Sept

3 ISSUE FOR REDUCTIONS Y+1,2,3  DNs can submit Enduring Annual Reductions for Y+1,2,3 in July window  These reductions affect entitlement for Y+4,5,6 but current UNC does not permit adjustment where Y+4,5,6 flex or pressure not met in full for DN  Impact could be less accurate matching of DN flat bookings to DN requirements when their flex & pressure is agreed with NG NTS

4 Outline of Modification 0413S - Example Flat capacity Gas Year Flat capacity Gas Year Flat capacity Gas Year Flat capacity Gas Year Flat capacity Gas Year Flat capacity Gas Year July requestsDN Adjustment Req e.g. more flat needed from Y+4 Can be allowed?* Case 1 Case 2 Case 3 Yes No without Mod 413S Yes with Mod 413S * Flat adjustment consistent with Y+4,5,6 flex or pressure not available as requested. Reductions need to satisfy User Commitment

5 Timeline  Workgroup report to Panel by 17 th May  Little time for consultation and conclusion before 1 st July 2012 (opening of Reductions request window).  Likely that provisions (if implemented) only available for 2013 application window  Workgroup report to Panel by 15 th March  Potential to conclude before 1 st July 2012

6 Seeking Workgroup views…