Harmonisation Working Group HWG Meeting, Tuesday 12 October, 2010, NIAUR Office, Belfast 12 Oct, 2010 1

HWG Agenda Minutes from Previous HWG Meeting 13.00 – 13:05 NIE Project Update 13.05 – 13.15 HRDS Work Programme Update 13.15 – 13.55 Confirm Classification of Requests Review / Approve DR1024 (Global Aggregation) Review / Approve 15 ES-sourced DRs Review / Approve DR0175 (WP18 – Token Meters) Next Steps AOB 13.55 – 14.00 12 Oct, 2010 2

Minutes of Previous HWG Meeting Minutes from HWG meeting – 26th Aug 2010 For Approval 12 Oct, 2010 3

NIE Project Update… 12 Oct, 2010 4

Confirm HRDS Classification of Harmonisation Requests Classification of Change Requests (7th Sept workshop and follow-on work) All 40 currently active requests are now classified as: Harmonisation Impacting = 33 Approved = 8 Approved but recently re-versioned = 6 New = 19 (15 from NI ES Requirements Review) ROI-Specific = 7 Approved = 4 New = 3 HRDS Active Market Request List Published on 6 October At today’s Meeting Confirm all Harmonisation Classifications are correct and, therefore, HWG has jurisdiction over these Requests 12 Oct, 2010 5

DR1024 – Global Aggregation V1.0 CER request for Retail Market implementation of recent SEM Committee decision on Global Aggregation (Option E) Requested implementation date for ROI to coincide with next Wholesale Schema release (April 2011) NI expect to implement Global Aggregation at or around the Enduring Solution go-live At today’s Meeting For Approval 12 Oct, 2010 6

DR1024 - Global Aggregation Currently all Independent Suppliers settled based on the aggregation of metered quantities PES – settled by difference through respective Error Supplier Unit All of the financial cost of the Residual Error Volume on the registrants of the Error Supplier Units. Global Aggregation – equal treatment in relation to the Error Supply Unit for all Supplier Units in the SEM The approved Option allocate the financial cost of the Residual Error Volume to all Supplier Units, proportionally to the amount of non-Interval meter volume as calculated for the relevant Supplier. 12 Oct, 2010 7

Global Aggregation: Option E – Enhanced Dual Factor Smear Key features in the proposal include : Facilitates Error Supplier Units in either Jurisdiction, which allows the Modification to be implemented separately in each Jurisdiction thus providing both an All Island solution and an interim solution for RoI jurisdiction without the need for additional work. Calculation of the Loss-Adjusted Residual Error Volume A new annual Residual Meter Volume Interval Proportion will be determined by the Regulatory Authorities A new Non Interval Energy Proportion for each Supplier Unit in each Trading Period, representing the proportion of Supplier Unit volume that relates to Non-Interval Metering will be created. Addition of the Non Interval Energy Proportion to the MDP message submission (currently including meter data). 12 Oct, 2010 8

Global Aggregation: Impact on Retail Market 590, 596 597MM MRSO will provide a daily NQH factor to SEMO for each supplier unit in line with and based on the current data aggregation procedures. The proposed method for providing this factor would be to use the current 590 message that is sent to SEMO as part of each data aggregation run. For the NPED 590 MM the factor will be based on the gross NQH consumption per unit and per 30 minute interval divided by the sum of the gross NQH demand + gross QH demand per unit per 30 minute interval. For the NPEG 590 MM the factor value will always be zero. This factor would also be displayed on the 596 and 597 messages. This will result in an additional field on the 590, 596 and 597 messages in order to carry the NQH factor. 12 Oct, 2010 9

Global Aggregation: Implementation CER has sought to have this DR progressed for implementation in the Retail Market in tandem with the necessary changes in the Wholesale Market and delivered simultaneously with the next Wholesale Market Schema Release (April 2011) in order to provide an interim aggregation solution to facilitate deregulation of ESB CS tariffs. At today’s meeting For approval 12 Oct, 2010 10

Review of 15 DRs arising from Requirements Review ES Requirements Review 15 DRs have emerged to accommodate the output from this review Broad thrust of changes is closer alignment by NI with ROI market design All changes will need to be approved by HWG on 18 Nov in order to meet the close of ES Design Phase At today’s Meeting Review and approve all 15 DRs to MCRs 12 Oct, 2010 11

DR0175 – WP 18 (Token Meters) V3.0 DR0175 – WP18 (Token Meters) Re-versioned to reflect outputs from recent Market Workshops on Token Meters / Budget Controllers At today’s Meeting For Approval 12 Oct, 2010 12

HRDS Work Programme – Outlook Workshop on 26th October (Dublin, RMDS Offices) HWG extraordinary meeting to accommodate workload arising from 15 DRs IGG Prioritisation Workshop for ROI-Specific Requests 12 Oct, 2010 13

Next Steps Proposed Diary dates for HWG meetings in 2010: 26.10.2010 (Extraordinary) 18.11.2010 Proposed dates are on Calendar of Events on RMDS website 12 Oct, 2010 14

HWG Meeting AOB 12 Oct, 2010 15

HWG Meeting Thank You 12 Oct, 2010 16