Reduction of Exit Capacity at DM Supply Points Chris Warner (29 September 2009 at Holiday Inn, Solihull)

Summary of Proposal Urgent Procedures required (aspiration for 1 Nov 2009 implementation) Transitional terms expiring at end of September 20[10] Enables reduction of SOQ and BSSOQ below current BSSOQ: Must become effective within existing Capacity Reduction Period (Oct 09 – Jan 10) Once only per DM Supply Point (regardless of whether change of Registered User occurs) Requested BSSOQ and SOQ must be the same value SHQ may also be amended such that requested SOQ remains between 4x and 24x the SHQ as required by UNC TPD G5.4.1 Subject to Consumer (Firm and Interruptible) and Registered User (Interruptible only) warranty

Registered User and Consumer Warranty Consumer signed letter of consent stating Anticipated peak daily load for Gas Year from Oct 2009 Reason for reduction (plant change, turn down in production) Gas will continue to be offtaken For Interruptible Supply Points Registered User warrants Information stated by Consumer is accurate and reflective of anticipated consumption for Gas Year from Oct 2009

‘Catch Up’ Mechanism Applies to Interruptible Supply Points only Seeks to reverse the effect of the appeal Recovers the balance of charges payable had the SOQ and BSSOQ had not been reduced Recovered from current and any previous Registered Users Where the User has subsequently increased their SOQ to a level above the BSSOQ value registered prior to the appeal then the charges will only apply up to the date on which the subsequent SOQ increase is registered NB: no changes proposed to applicability of Supply Point Ratchets therefore Firm Supply Points subject to such between October and May inclusive

‘Catch Up’ Mechanism Diagram