Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Daily Meter Reading – Mandatory Population Chris Warner Distribution Workgroup - June 2013

2 Daily Meter Reading – Mandatory Population  Current ‘bundled’ regime virtually unchanged since inception of Network Code in Known as ‘DMM’ and ‘DMV’  Overall population has declined significantly;  Original DM ‘mandatory threshold’ >75,000 TPA (approximately 25,000 sites nationally)  Interruption reform – population reduced to 4 sites in two networks, reducing further to one (NW) network for the 2013 interruption auction.  Current NGD population 694 sites  Daily Meter Reading (Voluntary – DMV) due to be eliminated (Mod 0345) by 1 st October further reduction to 190 sites

3 Daily Meter Reading – Mandatory Population  Criticality of daily data availability for Transportation purposes has declined significantly – data is now of only marginal benefit to Transporters:  4 sites subject to Interruptible contract on NGD’s networks  Limited number of ‘sensitive’ sites requiring ‘within day’ monitoring  However, a complex systems and process infrastructure is required to ensure current UNC obligations can be met by the Transporter  Legacy systems are life expired and inefficient. Timely action is necessary

4 Daily Meter Reading – Mandatory Population  Timely that regime should be reviewed  UNC provisions over complex and outdated  Opportunity to introduce competition into reading arrangements  Charges not cost reflective due to limitations of Meter Reading ‘price cap’  Current charges are: Datalogger - £ Meter Reading - £  Not cost effective or efficient for Transporters and customers to continue to administer in current form

5 Daily Meter Reading – Mandatory Population  Opportunity to pass on savings to Shippers and consumers  Suggested way forward - Simplification of regime  Not proposed to ‘unbundle’ DMM reading arrangements at this time  Areas for consideration:  Modify existing obligations to provide readings to Shippers by 11:00 on D+1  Review performance liability framework

6 Daily Meter Reading – Mandatory Population  Review Daily Read Error provisions  Revisit other (check reads, resynchronisation, etc)  Potential option for Shippers to make available data from reading equipment to Transporter (subject to certain safeguards and assurances)

7 Daily Meter Reading – Mandatory Population  Objective of simplification is to maintain a sustainable, ‘fit for purpose’ arrangements for the limited population of DMM sites  Addresses costs constraints  Opportunity to tailor services  Consistent with Project Nexus

8 Daily Meter Reading – Mandatory Population  Need to understand cost/benefit of simplification on Transporters and Shippers  Alternatives could be to:  substantially increase charges through raising ‘cap’  Seek disapplication of the Price Control  Move to AMR based liability free regime  Seek to ‘unbundle’ DMM reading arrangements in its entirety