CSEPs Update Chris Warner

2 Background  Review Group 0157  Incremental Improvements (eg: UNC Modifications 0167, 0180V, 0200)  Ofgem CSEP Group  Long term options (options 1, 2, 3)  Incremental improvements (option 4)  SPAA iGT Single Service Provision Scoping Group  Development of Option 3

3 Ofgem CSEP Group – Incremental improvements (option 4)  Change Order 1216  Issue: – date of registration in DNO Settlement Systems does not match that within iGT Supply Point Register – results in Supply Point mis-match  Resolution: – DNOs to allow registration in their Settlement Systems earlier in the connection process – enables co-ordination of iGT and DNO start dates where notification received from the iGT  Implementation: – Scheduled for 1 October 2009

4 Ofgem CSEP Group – Incremental improvements (option 4)  UNC Modification 0226 / Change Order 1262  Issue: – DNO unable to match iGT’s first LMN request to the DNO authorised connection (disconnect between engineering and commercial processes) – lack of nested CSEP data – results in Supply Point mis-match  Resolution: – iGT obligation to provide DNO reference number in LMN requests – DNO ability to receive and process data issued from nesting iGTs  Implementation: – Scheduled for 1 October 2009  Dependency: – iGT UNC obligation for ‘lead’ iGT to issue relevant DNO reference to all nesting iGTs and for nesting iGT to issue relevant data to DNOs

5 Ofgem CSEP Group – Incremental improvements (option 4)  Reconciliation  Implementation of change requests 1216 / 1262 and UNC Modification 0226 seek to address prospective registration activity  There is pre existing issue with a mismatch in iGT and DNO Settlement information  The key to the successful implementation of the changes is therefore the conduct of an exercise at implementation to reconcile all relevant portfolio information in DNO and iGT systems  Implementation plan will make provision for this

6 SPAA iGT Single Service Provision Scoping Group (1)  SSP  The CSEP NExA Governance group has discussed data quality issues between iGT’s and GDN’s.  This group has discussed a number of models to eradicate the incorrect gas allocation issue and those challenges faced by shippers and suppliers as a result of iGT’s varying approaches to Supply Point Administration and AQ Review.  As a result the SSP project has been set up by the SPAA Executive Committee to deliver the procurement of a single service provider for Independent Gas Transporters.

7 SPAA iGT Single Service Provision Scoping Group (2)  Progress so far  Cost Analysis  Comments Matrix  Alternative Options  Project plan for completion end 2012  Recommendations Report to SPAA EC in May 2009

8 SPAA iGT Single Service Provision Scoping Group (3)  SSP Issues and Benefits  Issues – Requires licence changes for either the Suppliers or the Transporters to ensure compliance – Funding  Benefits – Provide more timely and accurate data exchange between DN’s and iGT’s – Potential for reduced costs

9 Questions?