Distribution Workgroup 24/11/16 NEDs / VnBDs Distribution Workgroup 24/11/16

Agenda Background Proposal for 7 NEDs / 2 VnBDs – 1st June 2017 Implementation Definition of NEDs / VnBDs Treatment of minimum Objection Period Progress against modification timeline iGT data load considerations Matters arising in TPG Presentation to TPG (attached in full FYI) Report back from October DW

Background

Background& Non effective days (NED) are defined in each instance that they are required There is no standard definition in UNC of a NED Typically the definition of a NED would consider: Provision of Code Communications Whether updates to the UK Link System would be undertaken Specifically definition of Confirmations and DM readings Liabilities Whether NEDs would count as Business Days 0532 requested 7 NEDs 24th – 30th September 2016 1st October 2016 is Saturday – therefore 1st & 2nd were non Business Days Provisional plan to recover system to BAU by 3rd October 2016* * This was subject to detailed transition planning and PT, etc.

1st June 2017 PNID – NED/VNBD Mod& 1st June 2017 is a Thursday Plan remains to have seven NEDs prior to PNID (25th – 31st May 2017) It is assumed that plan supports this approach and this position is supported through TPG Recovery to BAU position System checks and hyper care Catch up necessary for 4 Supply Point System Business Days (SPSBD) The 2 days from PNID i.e. 1st June, and 2nd June 2017 are defined as a [‘Variant non Business Day’ (VNDBs)] in order to bring UK Link back in a controlled manner VNBDs defined to avoid confusion with having two types of NEDs defined in one modification

1st June 2017 PNID – NED Mod& Taking 1st and 2nd June 2017 as VNBDs Means that the industry have certainty on processing timescales Reduces the risk of inappropriate time based rejections Does reduce the objection window to less than 2 days for 7 effective days – see timeline example!: Extension to minimum Confirmation timescales for Confirmations effective 2nd June – 8th June 2016!!!! Can this be accommodated ‘voluntarily’ without the need for inclusion within the modification?!! Views from 27th October 2016 Distribution Workgroup: ! Minimum objection window should be at least 1 day !! No. This should be included in the modification legal text !!!! – See following section – range amended for 5th – 7th June 2017

25th – 31st May 2017 – NED& Definition of NEDs in this instance: Provision of Code Communications S Whether updates to the UK Link System would be undertaken S Specifically definition of Confirmations may become effective P DM readings P Liabilities S Whether days would count as Business Days S

1st and 2nd June 2017 – VNBD& Definition of VNBDs [in this instance]: Provision of Code Communications P Whether updates to the UK Link System would be undertaken P Specifically definition of Confirmations may become effective P DM readings P Liabilities S Whether days would count as Business Days S

Contingency Date& Within the UK Link Programme a contingency date of 1st July 2017 is recognised. This does not form part of the solution of this modification. Recognising the request from UKLC (and TPG) to include this in the modification, the following would apply were the PNID contingency dates to be utilised. 1st July 2017 is a Saturday. We would take 7 NEDs in advance of PNID. 24th to 30th June 2017. We do not foresee the need for further ‘special days’ i.e. NEDs or VNBDs We would expect minimum Confirmation timescales could be supported for the equivalent period PNID+1 to +7. A timeline is provided to Users for information only.

Recommended Option Summary& The Mod Solution proposes that: Define 24th May – 31st May 2017 as NEDs Define 1st and 2nd June 2017 as VNBDs + Provides early definition to Users and Xoserve + Provides up until Monday 5th June to get to BAU for Xoserve and industry + Consideration of minimum Confirmation window to be extended Development workgroup to assess: Extension of Minimum Confirmation Timescale for 2nd – 8th June 2017!!!! !!!! – See following section – range amended for 5th – 7th June 2017

Treatment of Minimum 1 Day Objection Period / Minimum Confirmation Period

1 Day Objn Period – Options Considered The Distribution Workgroup on 27th October 2016: Indicated that Xoserve needed to define a solution with a minimum of one Objection day Options considered: Extend minimum Confirmation lead time for Confirmation Effective Dates 5th – 7th June 2017 (Proposed) Single Variant non Business Day - 1st June 2017 Not recommended as IDR1 timings indicate that catch up activities will run into 2nd June.

1 Day Objn Period - Extend Min Confn Timings Single objection day reduces the impacted Confirmation Effective Date period from 2nd – 8th June 2017 (when 2 objection days were assumed) to 5th – 7th June 2017. Modification amended to reflect the above: Minimum 1 day may include notification following first run of batch on Monday 22nd May 2017 where Confirmation received on 20th and 21st May. Objection must be received by final processing on 22nd May 2017 Amendment to Legacy UK Link parameterised value 20th May – does not require reverting in Legacy

Progress against Modification Timeline

Development of Modification It was proposed that this will be developed in a single Workgroup following Panel (24th November 2016) Equivalent iGT Modification (092) has been raised - 7 NEDs (and 2 VnBDs) IDR1 timings experienced iGT data migration over running Risk has previously been raised regarding performance Lessons learnt have been conducted, and enhancements will be tested in specific planned iGT data cycles in December Recommend that modification awaits outcome of December test (due to conclude w/c 5th December) – will miss December panel Further testing planned in January IDR2 is planned in March – next test on Production environment If timings cannot be recovered – might require additional iGT NED(s) Views Mod timings – support additional period Approach re GT / iGT mod parity?

Matters arising in TPG

Matters arising in TPG Useful discussion on the definition of NEDs and VnBDs Testing of NBDs in calendar Re: Changes to Legacy Systems for Minimum Confn window Questions around the low level transitional plan Some are not relevant to the modification development – e.g. how catch up will progress Some are relevant to the modification When will Users be able to start to send files through. Current modification indicates not until PNID. Discussion regarding the potential extension of NEDs Keep parity between iGT and GT timescales – agreed Discussion around extending timescales now (pre: December test) – checkpoint in December

Questions?