Transmission Workstream 6th January 2010 Manifest Errors for Entry Capacity Overruns Appeals Possible Mod Proposal Transmission Workstream 6th January 2010

Background GasTerra had an issue with significant (>£m) Entry overrun charges incurred during April, as a result of a ‘manifest error’ Mod 341 to introduce Manifest Error Provisions into UNC Out for Consultation Close out 4th Feb Appeals Mod now being prepared to accompany Mod 341

Contents Purpose of Appeal Process Proposed Process Steps Grounds Outcome

1. Purpose of Appeal Manifest Errors Process in 341 requires UNCC to consider Claim and determine If it is a valid error What adjustment should be made to overrun charges 341 contains robust provisions to: protect UNCC members from personal liability, and require independent/impartial consideration of a Claim Appeal process would provide: Possibility of scrutiny of a UNCC decision Thereby reducing the likelihood of the need to use it and Mechanism to amend in the unlikely event of a biased or otherwise procedurally flawed decision

Appeal to Authority permitted 2. Possible Process Appeal to Authority permitted Within 5 days of determination of UNCC being notified to Users In writing, copied to UNCC Chair Who can Appeal? Users (whose invoices may be affected) Voting UNCC members (who may be aware of improper procedure) Claimant Grounds: That the decision of the UNCC was not made in accordance with section B, and that the failure to comply with section B had a material impact on the UNCC’s determination Possible Outcomes Uphold UNCC ruling Substitute its own ruling for that of UNCC Remit for re-consideration by UNCC

3. Questions Should a fee be payable ? £5000 to capacity neutrality, as a deterrent to spurious appeals ? What reporting requirements/ ‘obligations’ should there be ? Not appropriate to specify Ofgem’s procedures in UNC Can we ask for a report on the determination? Include right for UNCC to write to Ofgem after 55 days ? Any other concerns not covered?

7. Next Steps Submit for Consultation at Jan Mod Panel Decision by Feb Mod Panel Gemini Changes Mod (to follow, if necessary) Any comments/views – Please contact: sue@tpasolutions.co.uk (or: 07770 702966)