Transmission Workstream 05 November 2009 Draft Modification Proposal – Enabling the Partial Assignment of Registered NTS Exit (Flat) Capacity Transmission Workstream 05 November 2009

Background Mod Proposal 0263 raised by BGT to introduce partial assignment of exit capacity into the UNC Discussed with industry at various workstream meetings and with ourselves independently 0263 discussed at October workstream which recommended that it was sufficiently developed to go back to panel. Workstream also requested that NTS raise a ROM in 4-6 weeks. It was the intention of National Grid NTS to raise an alternate modification Proposal to 0263 to be considered at the same time

Similarities / Differences between Mod 263 and National Grid NTS’s Proposed Mod NG’s Draft Proposal Facilitate partial assignment in the Enduring regime Only Enduring Annual NTS Exit (Flat) Capacity and Annual NTS Exit (Flat) Capacity can be assigned Any associated User Commitment with the assigned capacity transferred from Assignor to Assignee Assignment may be rejected if conflicts with any existing Exit Forward Agreement or Exit Option Agreement Assignment not permitted where conflicts with any capacity transfer (trade) Assignment not permitted where conflicts with any capacity transfer (trade) National Grid to cover costs User Pays No reference to demonstration date NTS Exit (Flat) Capacity subject to a demonstration date will be unable to be assigned

User Pays National Grid NTS is of the view that the introduction of Partial Assignment would be a User Pays service because: it was not funded as part of Exit Reform it is a change to services provided by Xoserve it provides a clear benefit for Shipper Users (as recognised by 0263) It does not provide a benefit to Transporters

Users Pays National Grid NTS will be proposing: that recovery of any implementation costs for partial Assignment will be: 100% Shipper Users 0% Transporters met wholly by those Shipper Users that are registered as holding NTS Exit (Flat) Capacity pro rated based on shipper User’s registered NTS Exit (Flat) Capacity holdings as a proportion of the total registered NTS Exit (Flat) Capacity holdings held by ALL Shippers as of the 1 October 2012 as registered by National Grid NTS on the implementation date of this proposal one off charge invoiced in the month following introduction of the systems & processes enabling Partial Assignment

Next Steps National Grid NTS will raise a Draft Proposal once indicative costs/timelines are received from xoserve The Proposal will differ from BGT’s Proposal 0263 only in that: It is User Pays It excludes NTS Exit (Flat) Capacity that is subject to a Demonstration date Assuming relevant costs have been received we propose to submit the Proposal to the November Mod Panel