UNC Section H 1.9.2 Clarification National Grid Distribution UNC Section H 1.9.2 Clarification

UNC Section H 1.9.2 Clarification Purpose of this presentation: To clarify the interpretation of this paragraph; To amend a drafting error.

UNC Section H 1.9.2 Clarification This section was revised to clarify what would happen in the event that The Authority should give disapproval to the application of the revised End User Categories and Demand Models. To strictly apply those factors applying in the preceding year would make no allowance for the re-computation that is required to the profiles for the day of the week pattern applicable to the next year.

UNC Section H 1.9.2 Clarification Original wording: …. Condition 7(4) Disapproval to TransCo’s applying any particular such End User Category or Demand Model (and corresponding values), in which case the relevant End User Category and Demand Model (and corresponding values) shall be those applying in the Preceding Year. Revised wording: …. Condition A11(18) Disapproval to the Transporters applying any particular such End User Category or Demand Model (and corresponding values), in which case the Transporters will use the End User Categories and End User Category Demand Models applying in the Preceding Year to create corresponding values of the Derived Factors and such End User Categories and Derived Factors shall then apply to the Gas Year.

UNC Section H 1.9.2 Clarification This has been interpreted for the benefit of the Demand Estimation Sub-Committee (DESC) as follows: Fallback Position (Authority Disapproval): EUC definitions & derived factors will be applied to gas year e.g. 07/08 based on demand models from the spring 06 NDM analysis AND the forecast aggregate NDM demand model for 07/08 made in spring 2006 (not made in spring 07).

UNC Section H 1.9.2 Clarification One complication: …. Condition A11(18) Disapproval to the Transporters applying any particular such End User Category or Demand Model (and corresponding values), in which case the Transporters will use the End User Categories and End User Category Demand Models applying in the Preceding Year to create corresponding values of the Derived Factors and such End User Categories and Derived Factors shall then apply to the Gas Year. “End User Category Demand Models” do not exist. This should read “Demand Models”.

UNC Section H 1.9.2 Clarification Proposed solution: Apply for a "Consent to Modify” to remove “End User Category Demand Models” and replace with “Demand Models”.