Revised Tender Timescale for DN Interruption Arrangements Distribution Workstream 23rd August 2007

Background Mod 0090 – Revised DN Interruption Arrangements Ofgem decision 15 March 2007 Implementation Date 1 April 2008 New regime significantly different from existing regime DNs determine interruption requirements three years ahead (e.g. Feb 2008 for 2011 onwards) DNs publish interruption requirements (May 2008) Users value interruption - bid into DN tender process DNs select bids (offers) based on interruption requirements Successful Users receive payment for being interruptible Transition Arrangements in place to 2011 (based on existing arrangements)

Tender timescale – Mod 0090 Interruption Requirements published 1 May 08 Bid window opens (interruption offers) 2 June 08 Bid window closes 13 June 08 Notification of successful bids 11 July 08 Apply for NTS Exit Capacity end July 08 Issue: Present timescales allow only short amount of time to conduct analysis on interruption bids and analyse and apply for NTS Exit Capacity

Proposal Bring forward tender timescales by one month: Interruption Requirements published 1 April 08 Bid window opens (interruption offers) 1 May 08 Bid window closes 14 May 08 Notification of successful bids 14 July 08 Apply for NTS Exit Capacity end July 08

Proposed Timescales Discuss at Workstreams Distribution 23 Aug 07 Transmission 6 Sept 07 Mod Panel 20 Sept 07 DMR Issued 27 Sept 07 Close-out 18 Oct 07 FMR 25 Oct 07 Mod Panel 15 Nov 07 Ofgem Decision 1 Dec 07