Microgen – Background 2005 - Absence of Market Rules 300 Microgen Sites Total Export Energy 158 GWh p.a. (Avg 40kWh / Site/ Month) Interim Arrangements - ESBCS Produced Microgen Tariff - All Microgen Customers with ESBCS. - Dedicated Interim Solution

Limitations of ESBCS Arrangement No Facility to Identify Supplier And is Manual process so is not at present scalable

Proposed Rules for Extended Interim Solution Monthly Batch Process Export and Import registered to Same Supplier All export data for month issued to current supplier No aggregation of Export Export kWh only Confined to NQH sites The number of sites that can be setup will be guided by the solution

Next Steps Agree Rules for Interim Solution Extend Interim Solution to all Suppliers Process Data Retrospectively Determine full set of Market Rules for Microgen Evaluate Standalone Project for Permanent Microgen Solution