Assignment of NTS Entry Capacity – Work currently being Undertaken Assignment Workstream, 7th April 2009

Background As highlighted the UNC does contain some Assignment provisions Whilst both these provisions and the circumstances in which they can be applied are limited National Grid NTS recognises that where such circumstances occur it should seek to facilitate an Assignment of NTS Entry Capacity rights National Grid NTS has initiated work with xoserve to explore potential solutions and& costs (ROM) prior to initiating a full change order There may be scope to tailor existing functionality (in a limited manner) but this will require: Analysis work by xoserve Potentially additional system development

National Grid NTS Assignment Request National Grid NTS’ subsequent ROM request has a number of differences to previous ROM: It can only be made between two parties (there are no provisions for partial assignment); All the NTS Entry Capacity rights must be assigned; It applies across all ASEPs (all NTS Entry Capacity rights at all ASEPs must be assigned) Due to the simpler nature of this process National Grid NTS has asked xoserve to assess whether existing functionality can be tailored to deliver this process and if so whetherthis would be dependent upon the frequency of use.

National Grid NTS Position Understand Industry desire for this service However the service may only be used by a few industry players and existing arrangements whilst not ideal do work. We are happy to work with the industry in the development of a Mod but recognising the system implications and resource requirements and based on our prioritisation, we believe that any mod raised should be done so by the Industry as a “User Pays” modification