ESB Networks AIP Programme Update to IGG 21st September 2006

ESB Networks AIP Programme : Agenda 1. Review of where we are with the Design 2. Update on Issues 3. Next steps and Plans for progressing the Design with the IGG

ESB Networks AIP Programme: Review of where we are : Timelines The Regulatory Authorities announced that the go-live date of the SEM is 1st November 2007 ESB Networks have to be ready for Market Trials starting in June 2007 Testing with SMO from April 2007 The details of the testing with SMO and Market Trials have still to be defined and agreed

22nd June - IGG discussion on Appendix 8 – Key Issues ESB Networks AIP Programme : Review of where we are : Review of Interaction with IGG/TAG 18th May - Introduction 1st June - Draft ver 0.1 ‘Impact of AIP on ROI Retail Market’ issued to IGG 7th June - Special IGG 21st June - Draft ver 0.2 ‘Impact of AIP on ROI Retail Market’ issued to IGG 22nd June - IGG discussion on Appendix 8 – Key Issues - TAG discussion on Key Issues 29th June - Responses from Market Participants 4th July - SIMDRACS Co-Ordinator clarifications/decisions 7th July - Draft ver 0.3 [Appendix 8] ‘Impact of AIP on ROI Retail Market’ issued 13th July - Special IGG 10th Aug - Update to IGG

meeting that was due to be held on August 18th. ESB Networks AIP Programme : Review of where we are : Review of Interaction with IGG/TAG contd At the IGG of 10th August, a Provisional Plan for finalising the Design was presented. This was provisional and depended on the status of items from the SIMDRACS Board meeting that was due to be held on August 18th. At August 18th the SIMDRACS board agreed a 4 week workplan for all outstanding items and to meet again on September 14th At September 14th many items were baselined, with some items of detail that still needed to be finalised. These details will be progressed over the next few weeks - see later slides.

Networks AIP Programme – Review of where we are : Key Outstanding Items Data Queries and Disputes Process, Material Differences Potential for multiple aggregation runs for the same day Last week we saw the Agreed Procedure on Queries, and are awaiting details of the Disputes process before can present the IGG with the design for these items. M+20 ReAggregation is not included in the SIMDRACS Baseline Consumption Adjustments inside,outside the 13 months These are not included in the SIMDRACS Baseline of September 14th and do not appear to be part of the T&SC There is a RLG next week and there is the option for you to forward any comments on these items through myself, for forwarding to the SIMDRACS Co-Ordinator.

Networks AIP Programme – Review of where we are : Key Outstanding Items contd Data Formats - details of all fields to be finalised over next 3 weeks through SIMDRACS/SMO SMO have proposed a length of 32 for Participant Ids and new values. ESB Networks requested SIMDRACS Board to consider retaining the existing Supplier and Generator IDs for use in the Wholesale and Retail Markets. There was no common agreement to this, and the ESB Networks proposal remains ie to retain the existing Supplier ID and Generator ID for use in Retail Market processes. Key concern is around the Generator Unit, which if changed to the SMO proposed length of 32 could mean a change to 341 messsage, and also a number of other retail messages would need to be changed. We are looking at options around this and will present to you in due course. Indicative Aggregation is included in the SIMDRACS Baseline. Therefore, want to reaffirm the agreement to the proposals surrounding the estimates at D+1 - see later slides

Networks AIP Programme – Review of where we are : High Level Design New Aggregation timetable Non-Participant Aggregation and Netting Other Items

Networks AIP Programme – Review of where we are : High Level Design New Aggregation timetable Move of Initial Aggregation from D+10 to D+4 Re-Aggregation to be for a day rather than spanning 13 months Move of Re-Aggregation from monthly to daily at Month 4 and Month 13 New aggregation process for Indicative Aggregation and the provision of data for D+1 Aggregated data to be provided to SMO by 1400hrs - Exception is Initial which is now 1700hrs Indicative, Initial and Re-Aggregation from MRSO to be provided on week/working* days and specifically not calendar days This means data for Indicative for Friday, Saturday & Sunday will be sent by MRSO to SMO in separate files on a Monday [*the current thinking is that Bank Holidays may have to be treated as workdays by ESB Networks]

Networks AIP Programme – Review of where we are : High Level Design Non-Participant Aggregation and Netting - requirement for Non-Participant Generator data to be netted from Supplier Demand in Data Aggregation and conclusion of issue 6.1 , confirmation of the working assumption that ESB Networks are to net the summated non-participant Generator data registered to the Supplier Unit from the aggregated Import registered to the Supplier Unit per Settlement Interval. Therefore, 5x9 messages will not be needed - Simdracs requirement for Suppliers to receive automated messages for Non-Participant Generator’s export data that is registered to them - Non-Participant Generators - see later slides for further details

Networks AIP Programme – Review of where we are : High Level Design contd Other Items Data for SEM systems require NQH and QH sites to be aggregated together rather than separately ; and CER requirement for MRSO to continue to aggregate NQH & QH separately Change in re-aggregation approach from calculating differences to re-performing initial aggregation Interval period in which aggregated data is to be provided to Settlement is to move to Half-hourly from Quarter Hourly All Aggregated data for SEM systems to be provided in MWhs and specifically not kWhs New messages for aggregated data from MRSO to the SEM systems and Retail Market Participants.   New query and dispute processes for participants in the market, requiring the ability of MRSO to re-run aggregation routine multiple times for any selected day and producing data for SEM systems New SEM Data Model, introducing new concepts e.g. Supplier Units, Trading Sites; Meaning of Generator Unit changing > New Data Model, Data Conversion. Impacts on Registration processes. SSAC - values will be changing [note that SEM data will not include SSAC aggregations] Supplier ID/Generator ID - will be changing in the Wholesale Market Metering items with ESBNG IT Infrastructure to support Data Transfer mechanism from MRSO to SMO and Eirgrid Estimation of QH Data for D+1 for Indicative Aggregation

ESB Networks AIP Programme : Agenda 1. Review of where we are with the Design 2. Update on Issues from Appendix 8 3. Next steps and Plans for progressing the Design with the IGG

ESB Networks AIP Programme : Update on Issues from Appendix 8 Issue 2 SSAC or Supplier Unit for SOLR ‘ESBCS raised at the special IGG of June 7th 2006 the need for an SSAC for PES. This is due to CER direction on Supplier of Last Resort (CER/06/006). ‘ the design for SOLR will be based on the CER decision that SOLR customers' usage and demand data will be identified via a separate SSAC code [ref CER/06/006] In addition, should the SOLR wish to identify explicit wholesale volumes in the SEM for SOLR customers, then a Supplier Unit can be registered in the SEM into which the SOLR can register the SOLR MPRNs. This means that this Supplier Unit and these MPRNs would be included in MRSO aggregation calculations and messages.

Registration Processes ESB Networks AIP Programme : Update on Issues from Appendix 8 Data Definitions Issues 3,4 Status Data Formats are a work in progress item with SIMDRACS/SMO and are to be finalised over next 3 weeks through SIMDRACS There are two main interfacing processes between SMO and the Retail Market viz. Registration Processes Data Aggregation The key data items in these processes to bring to your attention today are Supplier Ids Generator Ids Supplier Unit Ids Generator Unit IDs Start time and End Time in Data Aggregation messages 5x0,5x6,5x7

ESB Networks AIP Programme : Update on Issues from Appendix 8 Data Definitions Issues 3,4 Supplier Ids and Generator Ids There will be new Participant Identifiers introduced for the SEM and the current SEM proposals are that they will be sized to facilitate a maximum length of 32 characters. ESB Networks requested SIMDRACS Board to consider retaining the existing Supplier and Generator Ids for use the Wholesale and Retail Markets. There was no common agreement to this, and the ESB Networks proposal remains ie to retain the existing Supplier ID and Generator ID for use in Retail Market processes. The alternative is a signifant effort to accommodate the increase in field length from 3 to 32. Generator Unit Ids There will be new Generator Unit Identifiers introduced for the SEM and the current SEM proposals are that they will be sized to facilitate a maximum length of 32 characters. This is of concern - mainly because of the 341 message which if we convert to the 32 long format then this and other messages would have to change. We are considering options and will present to you later.

ESB Networks AIP Programme : Update on Issues from Appendix 8 Data Definitions Issues 3,4 Supplier Unit ID There will be new Supplier Unit Identifiers introduced for the SEM and the current SEM proposals are that they will be sized to facilitate a maximum length of 32 characters. The ESB Networks proposal is to use the SMO-provided Supplier Unit ID in Data Aggregation messages that are effective for the SEM and also the Retail Market messages that are being changed to accommodate the Supplier Unit SSAC This is a CER requirement and will remain at a length of 1, and will initially be ‘A’ for non-PES and ‘F’ for PES Definition of Time in Data Aggregation messages for SEM [5x0 and copies 5x6,5x7] A revised definition of end-time for settlement intervals was provided by the SMO at the SIMDRACS Board on 14th September. The trading interval time is to end in either .00 or .30 and not 59.999 or 29.999 The implications of this are being considered and we will get back to you.

ESB Networks AIP Programme : Update on Issues : Non-Participant Generators Issues 6,12,27 [slide 1 of 4] Design for Non Participant below de minimis generators is proceeding based on CER Consultation Paper CER/06/151 ’Retail Trading for Non Participant Generation in the Single Electricity Market in Ireland’ ; final decision awaited Key Features include Limited forms of trading outside of market with more than one Supplier A below de minimis generator may sell its output to a maximum of three Supplier units. The sale by a below de minimis generator to a number of supplier units above only pertains to the splitting of gross export amongst the relevant supplier units. Gross import of the site on which the generator is located, like any other demand, can only continue to be supplied by one supplier unit. • Sale to a maximum of three supplier units is to be facilitated by splitting the output between the supplier units in question based on a fixed, pre defined percentage or on the basis of metered output, where all percentages add up to 100%. Below de minimis generators that wish to trade outside of the SEM and split sales of output between up to three supplier units may only change the relevant percentages once in a calendar year from the date of commencement of the splitting, except where a contract is terminated and/or a supplier unit exits the market

ESB Networks AIP Programme : Update on Issues : Non-Participant Generators Issues 6,12,27 [slide 2 of 4] Key Features contd: Splitting of output sales between up to three supplier units is to be facilitated through either of the following implementation approaches: Physical Metering: This approach is currently used in a small number of cases where sale of output is split between more than one supplier. Registration of Contracts/ IT System Splitting: Under this approach the allocation of output among various suppliers based on contract terms is to be done within the IT systems of the MRSO. The summation of the contracts in any trading period must equal the total output of the generator.

This will be a manual process covered by a new MPD/Working Practice ESB Networks AIP Programme : Update on Issues : Non-Participant Generators Issues 6,12,27 [slide 3 of 4] Key Features contd New Retail Market Registration process for generators who wish to sell their metered generation to suppliers outside of SEM and be aggregated into a Supplier Unit: This registration process allows a non-participant generator to register its export to PES This will be a manual process covered by a new MPD/Working Practice

ESB Networks AIP Programme : Update on Issues :Non-Participant Generators Issues 6,12,27 [slide 4 of 4] Non Participant generator data is to be aggregated to a specific Supplier Unit of the Supplier with which it has its export contract, i.e. the Generator data will be subtracted from the Import data by MRSO Where the output sales have been split , 341 and 5x8 messages containing the split data will be sent to the Supplier who has Registered the Supplier Units from which the generation is netted. This includes any data related to PES-contracted generation. Supplier Unit volumes cannot go positive therefore: It is a Regulatory requirement that in the registration process for Non-Participant Generation, a Supplier must show that they have historic demand that has been (in all Trading Periods) 20 times greater than the maximum contracted output of all out-of-market generation contracted to that Supplier Unit. If the supplier unit volume is positive the supplier unit volume will be set to 0 by MRSO before submitting the data to the SMO. A manual message will be issued to the Supplier in question by MRSO. This does not affect any other retail market messages to that Supplier. This will necessitate a Dispute with the SMO to resolve the issue

ESB Networks AIP Programme : Update on Issues from Appendix 8 7. Information on the Aggregation Calendar has been requested from SMO through the SIMDRACS forum. This is to allow us to understand the scheduling requirements of aggregation runs. 9. Signing of aggregated consumption in each of the 96 intervals in the 5x1,5x5,5x4 and 5x8 messages : as presented at the IGG of August 10th IGG, it is proposed to proceed with the original proposals that these messages would not contain any signs 10. Microgeneration Consultation There is an upcoming CER consultation on the treatment of micro-generation in Ireland. It is not expected that the implementation of the final outcome of this consultation will be needed for go-live.

ESB Networks AIP Programme : Update on Issues from Appendix 8 11. Interfacing requirements A ESB Networks <> Retail Market Participants : no change to ‘Black Box’ B Eirgrid -> ESB Networks: proposal of EirGrid is to use a new Webservices interface that they will be implementing, similar to SMO Webservices C ESB Networks-> SMO : SMO Webservices interface and MRSO propose to send aggregated data to SMO in four 5x0 messages instead of a single message - this does not impact Retail Market Participants

Unit Registration & Deregistration. Status ESB Networks AIP Programme : Update on Issues from Appendix 8 : Registration Issue 12 As part of SIMDRACS, MRSO is discussing a draft of Appendix 3 to Agreed Proceedure 1: Participant Unit Registration & Deregistration. Status Registration requirements are being discussed and agreed , and there is a follow-on meeting planned for late next week. A Change Request has been raised by SIMDRACS to SMO which if approved means that the proposed ‘Unique Associated Supplier Unit’ may not be needed Note - if this is not approved then it means that for the ‘Unique Associated Supplier Unit’, that Demand Data would have to be aggregated for the PES MPRNs registered to ‘Unique Associated Supplier Units’ Scope Appendix 3 covers communications of the SMO with the Meter Data Providers for the operation of the Single Electricity Market and includes items such as: Supplier Unit Registration , New Generator Unit Registration , Trading Site Registration, Supplier Unit Termination, Generator Unit Termination Notification of confirmation of Change Of Supplier for Trading Site

ESB Networks AIP Programme : Update on Issues from Appendix 8 13 Indicative Aggregation This is confirmation that Indicative Aggregation is included in the SIMDRACS Baseline. 17 Are MWhs needed in the 5x1,5x4,5x5 and 5x8 messages as presented at the IGG of August 10th IGG, It is proposed to proceed with the original proposals that these messages would contain kWhs

ESB Networks AIP Programme : Update on Issues from Appendix 8 18 Material Differences M+20 ReAggregation is not included in the SIMDRACS Baseline 19 Consumption Adjustments inside,outside the 13 months These are not included in the SIMDRACS Baseline 20 New Query and Disputes Process Awaiting details from SMO on the Disputes Process Design allows for a series of 55x messages to accommodate Ad-Hoc Aggregations

ESB Networks AIP Programme : Update on Issues from Appendix 8 23 Metering Responsibilities with ESBNG - latest position on meetings there is a SIMDRACS meeting scheduled for next week to discuss the file transport and format EirGrid have to formally confirm that they will poll these sites and provide data to SMO 2 CRs have been raised by SIMDRACS to SMO - Risk that if not accepted then ESB Networks would have to operate on a calendar day basis and to accommodate D+1 and D+3 requirements of SEM for Price Effecting data . Design is proceeding on the assumption that these CRs will be accepted. Key items for today The import for Transmission connected Generator sites to be polled by EirGrid and EirGrid to validate,estimate,substitute QH data and send to ESB Networks for Aggregation and distribution to Market Participants. Validation, Estimation,Substitution - raised at IGG today Distribution Connected Participant Generators that have Price Effecting Generation proposal is that going forward, they would not be sent 5x4 messages from MRSO, instead, that export data would be available to the participant via the EirGrid website.

ESB Networks AIP Programme : Update on Issues from Appendix 8 24. Extranet - if ‘Unique Associated Suppplier Units’ come into play, then these will also be flagged on extranet as well as Trading Site Supplier Units 25. Estimated Data from Indicative Aggregation as presented at the IGG on August 10th, it is proposed to proceed with the original proposals that estimates generated at D+1 for indicative would only be sent at D+4 on 341 messages where no actual read had been obtained What if any requirements have Retail Market Participants to be notified by email by MRSO of replacement QH data that is processed after D+4 ? 26. Versioning of 341 to be raised as a normal DR by RMDS and to be discussed outside of AIP Programme

ESB Networks AIP Programme : Update on Issues from Appendix 8 R1 “Estimated” Flags for Supplier Unit Data in SMO Aggregation Messages - Interval meter data only and not NQH data to be considered - service level targets for meter readings are to be agreed , and if met then the Supplier Units aggregated data will be marked with an actual flag, otherwise an Estimated flag A2 CEDQ file - request of EirGrid to continue to receive this - Work is in progress to finalise this item

ESB Networks AIP Programme : Update on Issues from Appendix 8 A3 ‘Re-settlement under market arrangements for re-aggregation to continue for 13 months after go-live. EIRGRID require aggregation data for settlement days prior to go-live in the current Supplier ID/SSAC format and specifically not in new Supplier ID/Supplier Unit/SSAC format for this period’, [501s,505s messages] This will be covered later as part of cutover work A5 Is the Supplier Unit ID required in the 341 message Currently we are assuming that this is not needed but waiting for final confirmation from two Market Participants

ESB Networks AIP Programme : New Items Note that there is a risk that both of these will be needed for go-live: Directed Contracts There is a potential requirement for MRSO to provide the CER with MICs , subtotalled by Customer Load group [eg residential,small commercial etc] for each Supplier on one specific day, annually. And for a monthly subset of that data to be provided. PSO Levy There is a potential requirement to support a Legacy Benefit Adjustment tariff, similar to PSO in that it would apply to all customers in ROI. It would be a new line item on the PSO bill.

ESB Networks AIP Programme : Next steps and Plans for progressing the Design with the IGG, contd. 5th Oct - Draft ver 0.4 updated 12th Oct - Special IGG to discuss version 0.4 and looking for agreement to proceed to MCR This could potentially be scheduled to cover a full day. 19th Oct - Issue of MCRs [this date is subject to the outcome of 12th October discussions] 2nd Nov - IGG to approve MCRs all subsequent changes will be progressed through formal MCR change control process

ESB Networks AIP Programme : Any Questions? Thank You