UKL Replacement Scenario Consideration 22nd November 2006

Possible Scenario - AMR Action to consider scenarios – varied market penetration of AMR Example scenario Assume all NDM monthly read meters have AMR Each daily read is sent to the GT No other process changes – e.g. continue to balance on NDM allocations, reconciliation as-is

Practical implications Currently approx. 1.6 million reads per annum for monthly read NDM Potential change could result in 55 million reads per annum 4.8million reconciliations per month (compared to c200,000 now) Each read Converted to volume Used for NDM Reconciliation (low value) A potential USRV or query Stored AMR scenario would clearly impose significant additional costs, but we have not estimated this speculative scenario

Outcome Considered to be an unlikely scenario – no business driver or apparent benefit Previous regime changes had overriding purpose: RGMA – metering competition RGTA – market signals RbD – efficiency with domestic competition Other scenarios could include: Half-hourly reads – CA model. How might this affect transporters? An increased order of magnitude Change that removes the need to store and manipulate data as at present? Potential decrease

Conclusions Consensus that the world will look different in 10 years, but.. No scenarios identified that would warrant amended PCR submission Future dialogue may surface specific requirements Desirable to have a mechanism to meet requirements