Development Work Group 0209 Straw Man Update 14 May 2008

Key √ = Agreed for the purpose of Mod Development X = Rejected ? = More work required Owner = Person to submit proposed solution or discussion starter at next meeting Owner = Person to submit proposed solution or discussion starter

Meter Reads

Meter Reads √ ? SB SL Meter Readings will continue to be submitted Owner Meter Readings will continue to be submitted √ Acceptances and rejections will be notified to the User as separate data items Accepted meter reads will be put forward for review USRVs will be put forward as current practice To be considered as part of validation ? SB All NDM meter types will be put forward (except below) DMs to be considered further SL Opening read estimate will only be used as opening read for any variance period

Consumption Periods

Consumption Periods √ SB ? SN Maximum period will be three years Owner Maximum period will be three years √ Minimum period will be nine months plus one day SB Target period will be different for monthly and non monthly: Monthly will be 50 weeks ? SN Non-monthly will be 42 weeks Current backstop will no longer apply

Validation Principles

Validation Principles Validation will be able to be systematised √ Current manual validations will be systematised where practicable The User will be notified of rejection Reason codes will be issued with rejections The User may resubmit for the following month User identifier will allow validation to be overridden

Validation Details

Validation Details ? SN EL √ Owner AQ increases of over 500% will be rejected ? SN May need to reflect AQ band EL If User resubmits with an identifier it will be accepted the following month √ Negative AQs will be rejected All reductions (other than negatives) will be accepted

Change Threshold

Change Threshold √ ? SB X ST Owner There will be change thresholds below which changes in calculated AQ will be ignored √ The Small Supply Point Threshold will be [x]% ? SB The Large Supply Point Threshold will be [y]% There will be no exceptions to this rule X Potential zero or smaller percentage for larger EUCs ST

Timescales

Timescales √ ? AQ updates shall be monthly Meter readings will be processed on 15th ? Calculations will take place between 15th and 25th Users will be advised on 25th New values will be live from 1st of the following month There will be no amendment process

Appeals

Appeals Owner Appeals will not prevent calculated AQs going live but the agreed value will apply in subsequent months √ Meter reading data can be changed by: A replacement read A more recent read Appeals will be allowed if User demonstrates: Meter asset data is erroneous Incorrect data adversely affects the AQ There is a manifest change in usage Need to debate appeal process for SSPs ? SL

Monitoring

Monitoring Owner Statistics will be reported at an industry forum √ Ofgem will receive a reporting pack ? JB Reports will be produced per User : Reports to be determined SN Frequency to be determined User anonymity will be retained All

Implementation

Implementation ? DNs Large Supply Points will be implemented in 2012 Owner Large Supply Points will be implemented in 2012 ? DNs Small Supply Points will be implemented in 2013

Threshold Crossing

Threshold Crossing ? SB/ SN MJ All √ Owner LSP will only become SSP or vice versa when the AQ changes by more than [5]% ? SB/ SN Mod 0640 replacement required MJ Mandatory Daily Metering will only apply when the AQ is calculated to be above the threshold for [three] months All Site Specific Correction Factors will only apply when the AQ is calculated to be above the threshold for [three] consecutive months Supply Points will not automatically revert back if AQ reverts √

Other Parameters

Other Parameters Owner AQ will be updated using the revised WAALP at the first accepted meter reading following a change in the Seasonal Normal Composite Weather Variables √ When SNCWV is changed all AQs will be scaled WAR will be calculated each year at the first accepted meter reading after 31 March SOQs will be revised when AQ revised SOQs will be revised to reflect load factor changes (trigger to be determined) ? SB