1. UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

2. UNC Mod 395 – Retrospective Invoice Limitation
Distribution Workgroup 25 August 2011
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

3. Overview Objectives of Mod 395 Electricity Arrangements
Sites impacted – some examples
Other areas of interaction
USRVs
Must Reads
Next steps
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

4. Objective of Mod 395
Reduce exposure of Shippers to retrospective invoices going back up to 5 years by
Reducing the invoicing window to a 2 – 3 year model – note on average 30 month window
Applied to all invoices
May also
Encourage more timely reading of some meters
Encourage proactive management of must read process
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

5. What are the electricity arrangements?
Final Settlement Run at 14 months
Parties able to raise a request to disputes committee prior to 20 months
Dispute Final Run occurs at 28 months
If a new issue arises in final settlement run parties able to raise further dispute within 1 month
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

6. Impact of 395 – annual read site with annual readings
Meter reading submitted
Meter reading submitted
Meter reading submitted
Meter reading submitted
Meter reading submitted
Meter reading submitted
Rec. period closed
Rec. period closed
Rec. period closed
Rec. period closed
Mod 152V – window moved to 1 April 2010 – no impact on reconciliation
Mod 395 – window moved to 1 April 2012 – no impact on reconciliation
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

7. Impact of 395 – annual read site with bi-annual readings
Meter reading submitted
Meter reading submitted
Meter reading submitted
Rec. period closed
Mod 152V – window moved to 1 April 2010 – no impact on reconciliation
Mod 395 – window moved to 1 April 2012 – impact on reconciliation
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

8. USRV Impacts 264 USRVs impacted by Mod 395 as of July 2011
USRVs at greater than 2 years reducing at circa 30/month
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

9. Must read impacts Only impacts on must reads in April – July period
Assumes majority of most must reads actioned within 3 months
May encourage Shippers to proactively engage on must reads in the Jan-March period?
Need to quantify impacts:
Number of must reads actioned on monthly basis for previous 24 months
Xoserve to provide?
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

10. Next steps Other issues to be considered:
What settlement period should the industry be aiming for?
Are there any impacts on credit/securitisation issues – can these be quantified?
Any other issues?
Aiming for 1 April 2012 implementation date
What notice from Ofgem is required – xoserve to provide
UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.

11. UNC Mod Retrospective Invoice Limitation © 24 November 2009 EDF Energy plc. All rights Reserved.