Modification 0429 scenarios v2.0 By Gareth Evans

Modification 0429

Scenario 1 –one shipper MAM sets incorrect correction factor of 1.25 at site in September 2005. Actual correction factor should be 1.00 Annual consumption in system 10,000,000 kWh Actual consumption 8,000,000 kWh 2,000,000 kWh (2Gwh) annual error Error noticed in January 2012 and corrected at site. Customer and Supplier agree size and duration of error by May 2012. Xoserve notified June 2012

Scenario 1 timelines * Using an assumed average SAP of 2.5 p/kWh, where appropriate. Unidentified Gas Estimate source Materiality Value* Applicable period Total Size of gas error 13 GWh £325,000 January 2012- September 2005 Total recoverable (Mod 0429 and reconciliation) 12 GWh £300,000 January 2012- June 2006 Automatically reconcilable 8.5 GWh £206,250 January 2012 – April 2008 Claimable under Mod 0429 process 3.5 GWh £83,750 April 2008 – June 2006

Scenario 2 – two shippers Turbine meter starts to incorrectly read consumption from October 2003. Annual consumption in system 5,000,000 kWh Actual consumption 7,000,000 kWh 2,000,000 kWh (2Gwh) annual error Error noticed in January 2012 and corrected at site. Customer and Supplier agree size and duration of error by May 2012. Xoserve notified of error in June 2012. Customer changed supplier in October 2007

Scenario 2 Unidentified Gas Estimate source Materiality Value* Applicable period Total Size of gas error 16.8 GWh £ January 2012- October 2003 Total recoverable (Mod 0429 and reconciliation) 12 GWh £300,000 January 2012- June 2006 Automatically reconcilable 8.5 GWh £206,250 January 2012 – April 2008 Remainder not covered by settlement 3.5 GWh £83,750 April 2008 – June 2006 Remainder not covered for Shipper 1 1 GWh £25,000 April 2008 –October 2007 Remainder not covered for Shipper 2 2.5GWh £61,750 October 2007 – June 2006 Shipper 2 can make a claim, Shipper 1 cannot as it is below the threshold. Shipper 2 would be able to make claim separately to Shipper undertaking reconciliation.

Waters Wye Associates: Contact Details Happy to answer questions : Waters Wye Associates: Gareth Evans 01473 822503 gareth@waterswye.co.uk