1. EU Phase 2 Delivery & UK Link Programme; Impacts on Gemini Process European Workgroup 1 st May 2014

2. The principal areas of change to Gemini resulting from EU Code Phase 2 and UK Link Programme (UKLP) are as follows: EU Code Phase 2 Delivers the rules and processes for offering and allocating cross-border capacity at interconnector points. A joint booking platform (PRISMA) will be used to implement the rules meaning that Gemini will be integrated with PRISMA to manage the end-to-end commercial capacity processes at EU Interconnection Points (IPs) Delivers a new nominations matching process at IPs with new interfaces with adjacent TSO systems Implements changes to the UK market ‘Gas Day’ from 06.00 – 06.00 GMT to 05.00 to 05.00 UTC UK Link Programme Changes are required to parts of the Gemini System in order to deliver key Project Nexus requirements for the UKLP: Change NDM Demand Estimation to be a stand-alone calculation using actual weather data Introduce a new balancing figure in daily gas allocations; “Unidentified Gas” and share out across Gas Shippers in line with agreed industry rules Make necessary changes to screens and interfaces to make Unidentified Gas visible to Shippers and pass through to Gemini and UK Link billing processes Make necessary changes to both Nominations and Allocations Background

3. 3 Programme Indicative Timeline - Overview 2013201420152016 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Build & Dev Test Logical Analysis System & User Test Data Cleansing Detailed Design HLD Stakeholder Engagement Cutover and go-live DBI Sourcing / Client Advisor Today Transition Arrangements

4. The indicative timelines of the Projects are shown below: Indicative Timelines

5. Indicative View of Areas of Impact EU Code Phase 2 Analysis on the EU Changes is just over half way through, initial indications are that External Users of Gemini will see change in the following areas: Bids for long term and short term auctions at interconnector points will be placed on PRISMA New screens will be required to support the nominations process at interconnector points New reporting screens and *APIs for Entry and Exit Entitlements at interconnector points and nominations Joint nomination procedure with Adjacent Transmission System Operators for TSO matching process Invoice file format changes due to the introduction of new charge types Once Design is complete the names of the screens, API’s and file format changes can be confirmed. Xoserve intend to share these at the July 2014 EU Transmission Work Group. * API means Application Programming Interface and is an automated mechanism for the shipper application to request and update data.

6. Indicative View of Areas of Impact UK Link Programme Initial analysis of Project Nexus requirements suggests that External Users of Gemini will see changes to: The existing ‘Maintain BA Total Energy Forecast’ screen that relates to the Demand Attribution and Nominations process The existing ‘LDZ WCF/SF’ screen that relates to the Allocations process A new screen for ‘Unidentified Gas by Shipper/LDZ’ relating to Allocations, Demand Attribution and Nominations processes An existing Energy Balancing API and the introduction of a new Energy Balancing API. Once Design is complete the number of changes and their names will be confirmed. Xoserve intend to share these at the August 2014 EU Transmission Work Group.

7. Next Steps Xoserve will attend the EU Working Group in July and August to confirm the names of the impacted screens, API’s and file formats. Further system updates will be given periodically to report progress and explain forthcoming key activities.