Gas SO Incentives Rollover Attendees: Phil Hobbins 6 October 2011

Gas SO Incentive Rollover Five of the existing Gas System Operator Incentive Schemes are due to expire in March 2012 We consulted this summer on the principles Ofgem are hosting a workshop to discuss their initial views for the incentive proposals on 12th October after the Gas Operations Forum Details are in Ofgem’s open letter on rollover incentive review process: http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=268&refer=MARKETS/WHLMKTS/EFFSYSTEMOPS/SYSTOPINCENT If you would like to attend please contact Mathieu.Pearson@ofgem.gov.uk

Current scheme expires Useful information National Grid Gas System Operator Incentive Info http://www.nationalgrid.com/uk/Gas/soincentives/ Talk to us: Juliana.Urdal@uk.ngrid.com 01926 656195 soincentives@uk.ngrid.com Scheme Current scheme length Current scheme expires Purpose of incentive NTS Shrinkage 3 years 31 March 2012 Minimise cost of purchasing gas & electricity for shrinkage Unaccounted for Gas Reduce volumes of unaccounted for gas Residual Gas Balancing 2 years Minimising daily change in linepack to promote cost targeting whilst minimising the impact of its trades on the market Demand Forecasting Minimise the error in NGG’s demand forecast Data Publication Encourage the timeliness and availability of published information