Harmonisation Working Group HWG Meeting Wednesday, 23rd February, 2011 CER Offices Dublin

Harmonisation Working Group HWG Agenda Introduction, Minutes and Agenda 13.00 – 13:05 HSG Meeting Feedback 13.05 – 13.10 ES Project Update 13.10 – 13.15 Market Design Work Update 13.15 – 13.35 Long-Term Consumption Adjustments Update 13.35 – 13:50 HWG To-Do List Review 13:50 – 13:55 AOB & Closing 13:55 - 14:00 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Feedback from HSG, 1 Feb 2011 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group ES Project Update 23 Feb, 2011 Harmonisation Working Group

MCR1042 V3.0 – Removal of non-visit keypad meter configuration changes Change Request Suppliers would no longer be able to request a non-visit keypad meter configuration in NIE Would improve the accuracy of site configuration and subsequent billing data Current update means that Meter Works Type K01 (Change Keypad Meter Configuration - No Site Visit Required) will be developed but disabled at go live, pending an operational review by UR, including: Estimated Savings that will be accrued by remotely reconfiguring keypad meters; The additional issues and risks that will be encountered by remote reconfiguration to the quality of market data; and The change in the customer experience. At today’s Meeting Approval 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group DR1045 V1.0 – Removal of non-visit keypad meter configuration changes - NI Interim Solution Change Request Essentially the same as MCR1042 but: Applies only to the Interim Solution No commitment in the DR to an operational review Jurisdiction-specific change request At today’s Meeting Agreement to Transfer to SIG 23 Feb, 2011 Harmonisation Working Group

MCR1024 V2.2 – Global Aggregation Change Request CER request for Retail Market implementation of recent SEM Committee decision on Global Aggregation (Option E) MCR V2.1 Approved at HWG 26 October 2010 For implementation in the ROI June 2011 MDU Current update removes the now unnecessary requirement to change MM597 and unnecessary references to MM590 Intent of MCR remains unchanged At today’s Meeting Approval 23 Feb, 2011 Harmonisation Working Group

DR1046 V1.0 – Revision of ROI Market Assurance Documentation Change Request Revision of the full Market Assurance Library for: Improved general usability and readability (esp. new entrants) Application of accumulated technical updates: Post Implementation Review Inactive entrant re-qualification Small Supplier Market Entry Requirements Self-Supplier Market Entry Requirements Data Transfer Testing Balance of IPT Test Scenarios Jurisdiction-specific change request At today’s Meeting Agreement to Transfer to IGG 23 Feb, 2011 Harmonisation Working Group

Harmonisation Baseline (HBL) Update Approach to updating HBL to V2 Refresh of HBL V1 Merging of Data Codes (schema and non-schema coded value sets) with Value List Compare Removal of all comparative, data definition-related and working info from Value List Compare to produce a cleansed Data Codes file Removal of all value codes-related information from Data Definitions file and alignment with cleansed Data Codes file Production of HBL V2 Phase 1: application of all approved Harmonisation-impacting MCRs to core HBL elements (Definitions, Codes, Messages) Phase 2: derivation of all jurisdiction-specific Message Guides and ROI impact document (NI Change Note will not be further maintained) Phase 3: publication of new HBL V2 Outlook Core HBL V2 elements will be available by end March along with ROI-specific elements (Message Guides and Impact document) NI-specific elements will be available later in line with the ESP schedule commitments 23 Feb, 2011 Harmonisation Working Group

Long Term Consumption Adjustments ESB Networks & NIE T&D. 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Agenda Issues Mod 66_08 Outside Settlement Determination Long-term Consumption Adjustments - Options Other factors in dealing with LTCA Next Steps 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Issues Mod 66_08 approved – need to agree a process in the Retail Market Increased activity in the Market – all Suppliers impacted: In ROI Suppliers may not receive full Energy or TUoS adjustments In NI Suppliers may not receive full Energy, PSO or SSS adjustments Customer Complaints if overcharges are not reimbursed by Suppliers Problems more complex as market opening progresses Need to review and revise the process for handling Consumption Adjustments to ensure a consistent approach for their treatment and documentation across business processes e.g. How far back to correct data & charges Implications for COS/CoLE Possible revision of DSO rules and documentation Different solution may be required post Global Aggregation Opportunity to provide an harmonised arrangement in both retail markets. 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Mod 66_08 Background Long Term Consumption Adjustments relate to errors in consumption data that would not ordinarily be rectified through Meter Data Provider (MDP) aggregation processes. These errors could arise through: Illegal abstraction Meter faults Actual readings replacing estimates post 13 months. It is proposed that errors are handled according to the following criteria: Where the errors are identified within the 13 month Re-settlement period any portion of these errors falling within a period which has yet to have it’s final scheduled Re-settlement should be processed through the normal SEM Re-settlement processes Where the errors are identified outside the 13 month Re-settlement period these will always be processed through an Outside Settlement Determination process Where an Outside Settlement Determination is used, it is proposed that this is coordinated in the “Retail Market”. 23 Feb, 2011 Harmonisation Working Group

What is an Outside Settlement Determination? A calculation performed outside of the Settlement Systems and Processes that is designed to achieve approximately the same cash flows as a settlement run based on correct data. Would involve those Parties whose Meter Data was affected by the error, plus representation from the Error Supplier Unit if appropriate, representation from the Meter data Provider, the Use of System provider, Revenue Supplier Units and Customers if appropriate. 23 Feb, 2011 Harmonisation Working Group

Options for Addressing Long Term Consumption Adjustments Option 3 is considered in the following slides 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group OSD – Key Principles DSOs provide data only to Market Participants Adjustments >13 Months: DSOs to use spreadsheet applications to record kWh adjustments and forward OSD data to all participants and error account holder to enable parties to make bilateral financial settlements. Adjustments of DUoS resettled by DSOs directly with each relevant supplier. Error Supplier Unit issues Debits / Credits directly to Suppliers in respect of Energy / Capacity TSOs issue Debit / Credit for TUoS directly to Suppliers Suppliers will settle with customers for the period that they served the customer Note: All Revenue Adjustments which cannot be rectified by reading replacements to be recorded as kwh adjustments and processed as above Revenue Vs Reading Adjustments Revenue Adjustments - Unable to Replace / Withdraw readings in SAP Faulty Metering Equipment (meters, timeswitch, CTs, VT’s) Interference to Metering Equipment or Network where meters are bypassed Undocumented Connections where readings not available or MPRN created from current date. Unit Adjustments – Readings can be Replaced/Withdrawn in SAP Actual Meter Readings received after prolonged estimation Incorrect Number of Digits applied to meter readings Crossed Metering Incorrect Multipliers applied to consumptions Retrospective Adjustments to unmetered inventories Undocumented Connections where readings available and MPRN created pre connection date Adjusted Profile Data Exclusions MIC / Availability Changes 23 Feb, 2011 Harmonisation Working Group

Data Flows ESU TSO Supplier Customer MRSO (RoI) MRSO (RoI) CMS (NI) DUoS Billing ESU = NIE ES in NI or ESB CS in RoI 23 Feb, 2011 Harmonisation Working Group

Revenue Vs Unit Adjustments Revenue Adjustments - Unable to Replace / Withdraw readings in SAP/CCMB Faulty Metering Equipment (meters, timeswitch, CTs, VT’s) Interference to Metering Equipment or Network where meters are bypassed Undocumented Connections where readings not available or MPRN created from current date. Unit Adjustments – Readings can be Replaced/Withdrawn in SAP/ CCMB Actual Meter Readings received after prolonged estimation Incorrect Number of Digits applied to meter readings Crossed Metering Incorrect Multipliers applied to consumptions Retrospective Adjustments to unmetered inventories Undocumented Connections where readings available and MPRN created pre connection date Adjusted Profile Data Exclusions MIC / Availability Changes 23 Feb, 2011 Harmonisation Working Group

Other Issues for Agreement / Decision How far back to correct data – proposal: Beginning of Problem / Incident or Limiting date for SAP ISU / CC&B - 1st Jan ’06 in ROI or Aug ’06 in NI or 6 Years (limitation of liability – Contract Law Act) Should data be corrected irrespective of COS or CoLE Supplier issues regarding debit/credit de-registered customers Should there be a materiality threshold Mechanism for Suppliers to make bilateral settlements Frequency of Processing information for OSD Market must establish historic monthly price matrix for Energy & TUoS (in ROI) Progression to Global Aggregation Market DSO cost recovery for provision of OSD service. 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Next Steps Feedback from Participants to HWG Establish Industry Working Group to make recommendations on implementing an Outside Settlement Determination for both jurisdictions. 23 Feb, 2011 Harmonisation Working Group

Draft Terms of Reference Joint Working Group Review Options How Suppliers deal with Deregistered Customers Develop Price Matrices - Energy, Capacity, Imperfections, MO, TUoS (in ROI) & PSO & SSS (in NI). Disputes Committee Materiality Threshold Develop a Working Practice and Code of Practice Impact Assessment of any system changes How to Progress to Post Global Aggregation Phase 23 Feb, 2011 Harmonisation Working Group

HWG Action Items update since last meeting 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group Next Steps Next HWG meeting 6 April, 2011 (Belfast) Dates for all meetings for 2011 are on the Calendar on the RMDS website 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group HWG Meeting AOB 23 Feb, 2011 Harmonisation Working Group

Harmonisation Working Group HWG Meeting Thank You 23 Feb, 2011 Harmonisation Working Group