EU Implementation Programme Action TR1003: All to consider how to address EU developments going forward and send any identified issues to: by 18 October 2013.

EU Updates to GB Stakeholders  Regular updates are provided by NG NTS to GB stakeholders via DECC/OFGEM meetings, Transmission Workgroup Updates (monthly), Gas Forum, NG open meetings (adhoc), Bilateral meetings, etc.  The updates have covered the following:  Development of the European Framework Guidelines or Code – highlighting emerging concepts, rules, encouraging involvement in and detailing EU engagement opportunities, phase completion dates and implementation dates  National Grid Impact Assessments (IAs) – highlighting areas of change for GB regime  Comitology Updates – highlighting changes made by the EC following discussion with member states  Pre Modification Updates – providing further detail on the changes identified and/or how they maybe implemented  Details on initial high level implementation roadmap are now being communicated

High level Roadmap Today Surrender process (UNC Mod 0449) LTUIOLI & enhanced provision of data to ENTSOG platform Gas Day (enabler) Short term auctions (within day + day ahead +monthly ) capacity allocation arrangements at IPs Other EU legislation – REMIT Data exchange, allocations & Interconnector Agreement renegotiation Long term capacity auctions from Mar 16 (effective 1st Oct 16) Short term UIOLI Incremental capacity auctions at IPs (TBC) Implementation of tariff arrangements at IPs (2017) Other codes (TBD) [Trading Code] CMP CAM Interoperability TariffsOther Phase 1b By Oct 2014 Phase 1a From 1 st Oct 2013 Phase 2a either 1 st Oct or 1 st Nov Phase 2b on or before 1 st Nov Phase 3 Phase 4 Balancing Cross border nominations

Phase 1b (indicative) NB – We will look to utilise existing functionality for CMP LTUIOLI change but this needs to be continually reviewed as the solution is developed.

Phase 2 – Areas of change 5 CodeLeadKey Area of Change CAM with CMP review M Hatch1. Primary Capacity Auction Process at IPs 2. Secondary Capacity Auction Process at IPs 3. Interruption Process at IPs 4. Facilitator Mod (Bacton split, etc) 5. CMP (integration with CAM) 6. Changes to enable joint capacity booking platform BalancingC. Shanley/P Lucas 1. Nominations Process at IPs (balancing) B Viney2. Information Provision *Other changes may be required - awaiting response from Ofgem on scope of balancing changes InteroperabilityP Hobbins1. OBAs/Allocation Process at IPs 2. Data Exchange P Hobbins/M Connor 3. Matching (IA change) Gas DayH BurdenUNC Mod 461 TBCTBC - Contracts, Systems and Gas Measurement Interconnector Agreements Carol Spinks/P Hobbins 1.Interconnector agreement re-negotiations 2.Potential UNC Enabler Modification

NG Initial Thoughts on Options for Phase 2 Industry Engagement 1.Continue with the Tx WG updates and rollout Phase 2 UNC Mods as appropriate from Q It is anticipated that this could lead to EU developments and Mods being discussed at a separate dedicated meeting 2.Arrange a series of National Grid workshops to examine the EU obligations in phase 2, prior to the launch of the UNC Mod process from Q Set up a Gas JESG type standing group, consisting of NG and key stakeholders and use this group to work through the key issues prior to the raising of the associated UNC Mods from Q  Note 1: in all cases Modifications will propose that they go to Workgroup for development/discussion with UNC parties and not straight to consultation  Note 2: chosen approach expected to apply to all phases