Project Nexus Market Differentiation Formal Market Separation

Proposal Formal Separation of Domestic and I&C Use of Market Sector Code to Define customer type Simplifies market operation RBD aligned with Domestic Sector Aligns with consumers actual market designation Our current market operation is defined from the unbundling of the Gas Market in tranches and this has led to a disconnect between the actual nature of the consumer and their AQ. We already hold and flow the Market Sector designation “D=Domestic” “C= Commercial” The recognition of the existing Market Sector code will simplify market operation for all concerned. We believe The market sector code is more appropriate as it is truly reflective of the nature of the site.

Benefits Reduces existing complexity Reflects Licensing Regime LSP/SSP I&C / Domestic AQ Reflects Licensing Regime Supports developments such as Smart and Advanced Reduces complexity Reflects obligations within Suppliers Licences Provides alignment with the roll out of Smart and Advanced Metering

Benefits Line by Line settlement for all Commercial Customers leading to Improved read frequency and quality leading to Improved AQ process leading to EUC bands to suit “9-5” customers leading to More Accurate SOQ’s leading to More targeted Capacity Costs leading to Supporting Advanced Meter Roll Out leading to Broader Access to Commercial Products

Data Quality Market Sector Code Issue Solution Robustness Timeline for Nexus allows for Data Cleansing to be undertaken if required Suppliers free to define approach It is currently recognised that the Market Sector Code is not a “robust” piece of Data It is therefore appropriate to consider through the Nexus implementation as the lead times provide ample opportunity for making any changes to Data to ensure its accuracy.