ADD PRESENTATION TITLE HERE (GO TO: VIEW / MASTER / SLIDE MASTER TO AMEND) ADD PRESENTER’S NAME HERE / ADD DATE HERE © Copyright EDF Energy. All rights reserved. MOD 272 – REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURED STEFAN LEEDHAM 14 JANUARY 2010

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 3 PURPOSE OF THE REVIEW 1. When a change of Shipper has occurred the previous Shipper has no way of validating the Mod 640 invoice Identify what information is required by the previous Shipper to support a Mod 640 invoice Identify when this information should be provided Identify the format for providing this information User Pays issues 2. The outgoing Shipper has no way of influencing the outcome of the annual AQ Review To identify whether a dispute process is required To identify what the Governance of this process should be To identify the high level business rules of a disputes process User Pays Issues

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 4 INFORMATION TO BE PROVIDED Opening and Closing reads used for setting the AQ and read dates Round the clock (TTZ) counts Date of AQ change Serial Number of the meter Current registered Shipper Registered AQs since last annual AQ review

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 5 INFORMATION TIMING 1. At initial notification of AQs by xoserve Provides early insight for investigation and preparation by previous Shipper Resource intensive AQ may be amended to SSP Does not provide real view of Mod 640 invoice 2. At end of AQ review Provides more accurate view of Mod 640 invoice Less resource intensive Takes into account AQ amendment window Provides early insight for investigation and preparation by previous Shipper Would enable registered Shipper to undertake an AQ Appeal if required 3. As backing data in the Mod 640 invoices Reflects Mod 640 invoice No time for investigation and preparation by previous Shipper No time to appeal the AQ by registered Shipper

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 6 FORMAT OF REPORT To be guided by xoserve, however our aspirations are: Single report delivered at M+1 after end of AQ Review Delivered via IX file Secure Same format as Mod 640 invoice

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 7 USER PAYS ISSUES This is a User Pays Service as this represents a change to an existing service Who Pays? Transporters: – Common practice that when an invoice is issued there is sufficient supporting information to validate and pay the invoice – Could reduce invoice queries and disputes reducing xoserve’s workload? – If the implementation costs were very low the cost of invoicing may be greater than the value of the invoice? Shippers: – Supports their settlement and finance roles – Mod 640 designed to protect RbD Shippers

REVIEW OF MOD 640 VALIDATION ARRANGEMENTS FOR WHEN A CHANGE OF SHIPPER HAS OCCURRED Stefan Leedham 14 January 2010 © Copyright EDF Energy plc. All rights reserved. PAGE: 8 QUESTIONS?

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