Connected System Exit Points - Update Chris Warner

Background: Industry CSEP Framework xoserve SPA Aggregate Data DN/iDN Invoice (NTS/DN/iDN Network) Reconciliation Volume Uniform Network Code NExA Shipper iGT iGT Network Code SPA Activity Meter Readings Invoice (iGT Network)

Background Review Group 0157 ‘Review of IGT Settlement and Reconciliation Arrangements’ Raised 11 July 2007, Review Group Report approved 17 July 2008 Key issue: Supply Point Discrepancy 6.3% in July 2007 (based on 6 RbD Shippers), Ofgem CSEP working group Driven by recognition that ‘solutions’ may reside outside UNC Significant regime change – Options 1, 2, and 3 Incremental improvements – Option 4

Actions Taken (Incremental Improvements - Option 4) New connections process mapped between IGTs, DNs and xoserve MOD 226 increased mandatory data provided by IGTs CSEPs process changed to validate using DN reference More “stable” data item in project lifecycle CSEPs process changed to use DN CSEPs project data at Accepted status of quote Decoupling administration and billing from engineering aspect Projects still expected to be progressed to Completed CSEPs process changed to manage nested records 18,000 sites, AQ of 265M kWh now held as nested Removal of AQ04 maximum CSEP AQ rejection

Portfolio Mismatch August 2009 IGT total: 1,192,248 premises xoserve: 1,106,701 premises Mismatch August 2009: -85,547 = -7.18% December 2010 IGT total: 1,315,879 premises xoserve: 1,283,985 premises Mismatch December 2010: -33,064 = -2.5% Note: IGT growth of 123,600 properties (10%) in <18 months