CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Inter Shipper Discussion Processes Initial Discussions CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Objectives Develop a process to support inter-Shipper discussions regarding the application of Mod 640 invoices: Encourage registered Shipper to undertake an AQ appeal to avoid Mod 640 charges – where appropriate Target Mod 640 invoices to the Shipper where the consumption change has occurred Default – no change Cover both domestic and I&C sites Process to be followed by all Shippers CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Highlevel Processes Shipper receives notification of Mod 640 invoices for sites that it is no longer registered to [by 1 Nov] Shipper contacts registered Shipper to raise concerns Registered Shipper responds: AQ appealed – Mod 640 will not apply AQ correct no appeal required Inter Shipper discussions supported by evidence Notification sent to xoserve by registered Shipper that inter-Shipper discussion taken place and Mod 640 invoice should be apportioned to registered Shipper CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Highlevel Processes Cont. Xoserve issues Mod 640 invoice based on notifications received – default no change Mod 640 invoices settled CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Governance Process recognised and required in UNC Incorporated into UNC or Related Document: Transparent √ Clear change process √ Removes discretion from Shippers regarding application and signing √ Shipper to Shipper issue X CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Governance Cont. Under ICCOP Similar to ISD process √ Shown to work √ Shipper discretion to sign – removes ability to force through a change √ Shipper to Shipper process √ Voluntary X Only covers I&C X CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

Issues to be addressed Xoserve’s timeline to receive notification prior to issuing Mod 640 Invoice Does xoserve require pre-notification of a potential re-allocation Timeline for Shippers to resolve What should the Governance be? CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.

CONFIDENTIAL - Inter Shipper Discussion Process Initial Discussions © 24 November 2009 EDF Energy plc. All rights Reserved.