1. PN UNC Workgroup Settlement topic 4 th October 2011

2. 2 Objectives of the Workgroups Determine detailed business requirements & rules for future processing of meter reads and Settlement arrangements Output from workgroup; –Process maps –Business Requirements Document for future state. Document to provide sufficient definition around business rules to: Enable the proposed requirements to be incorporated in xoserve’s investment decisions, and Support the raising of any UNC Modification Proposals, if required Monitor & align with latest SMIP position Focus will be on requirements for Project Nexus delivery

3. 3 Business Issues Raised Business issues around settlement, allocation and meter reading processes were raised during; –1st AMR Workgroup from walkthrough of DME regime –The Allocation Principles and Settlement Workgroup –During the Project Nexus Consultation (taken from the IRR) These were reviewed at 22/08/11 meeting and agreed either; –Resolved & included in the requirements –Considered but closed –No longer an issue

4. 4 Scope of Settlement Topic Determination of daily gas offtaken, processing of reads and interaction with subsequent reconciliation Obtain and Validate Meter Reading Submit Meter Reading to GT Determine Daily Energy Offtaken Issue Energy Balancing Invoices Collect/Pay Energy Balancing Invoices Determine total LDZ Energy Obtain site level energy values Apply ‘Allocation Scaling Adjustment’ (smear) Determine daily energy offtaken Scope of “Settlement”

5. 5 Objectives for Today’s Meeting Complete requirements for Settlement; –Agree read validation process (Market breaker) –Review & approve updated process flows –Review comments made to the BRD Agree updates to BRD or Provide reason for not amending BRD –‘Approve’ / Workgroup sign off BRD Agree next steps –Re-publish updated version of BRD (v0.9)? –Update Modification 0377?