Exit Reform : Delay to Ad-hoc Application Principle until 01 October 2009

Background Exit Reform Modification expected to be implemented 01 April 2009 But, decision has not yet been received Number of procedures/documents need to be in place/completed prior to capacity being applied for e.g. ExCR Initialisation

Proposal NG NTS is working to the assumption that 195AV will be implemented 01 April 2009 which will allow Ad-hoc Applications from 01 April However: Licence requires ExCR to be submitted 01 April Code will require initialised rights to be notified 01 May NG NTS therefore proposes that: The July Annual Application Window in 2009 will be the first opportunity for capacity applications Ad-hoc Applications will be permitted from 1 October 2009 to 30 June 2010 and for the same period each year thereafter NB, ALL CAPACITY CANNOT BE UTILISED UNTIL 01 OCTOBER 2012

Reasoning Believe it is not appropriate to receive capacity applications until the ExCR Methodology Statement has been approved and the rules defined Similarly, this would prevent applications being submitted prior to Users knowing their Initialised rights All booked capacity begins from 01 October 2012 Ad hoc Applications submitted prior to July 2009 could only apply to capacity from 01 Oct 2012, therefore the July 2009 Application Window will provide the same opportunity

Conclusion Imperative that ExCR is in place before Applications received Opportunities to acquire capacity Initial Holdings notified 1 May 2009 July Annual Application window from 2009 and each year thereafter Ad-hoc Applications form October 2009 to June 2010 and for the same period each year thereafter An Ad-hoc application between April and June 09 could not acquire capacity before October 2012 so no disadvantage in waiting for the July window