FUEL MIX DISCLOSURE 29 February 2012

2 Fuel Mix Disclosure - History Article 3(6) of the Internal Market Directive (Directive 2003/54/EC) Final customers must see overall Fuel Mix & Individual Mix & related Environmental Info Transposed as Regulation 25 of S.I. 60 of 2005 RES Directive 2009/28/EC No connection between National Targets & Fuel Mix Disclosure

3 Fuel Mix Disclosure – Relevant Papers Decision Paper SEM (Enduring Decision) Consultation Paper SEM Decision Paper SEM (Interim Decision) Related Papers: Decision Paper CER/11/82 Supervisory Framework for Administration of Guarantees of Origin

4 Fuel Mix Disclosure - Objectives Increase market transparency Comply with consumers’ rights Enable consumers to make informed decisions Educate consumers and stimulate electricity generation

5 FMD Label on Customer Bill

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7 Fuel Mix Disclosure - Overview SEMO completes the calc on an annual basis Required to calculate All Island Fuel Mix Individual Supplier Mixes and Emissions Factors Suppliers submit declarations and ‘claim’ generators (Both in-market and out-of-market)

8 Fuel Mix Categories Coal Natural Gas Peat Renewables Oil Nuclear ‘Other’ Any fuel less than 1% classed as ‘Other’

9 FMD 2010 Breakdown

10 Emissions Factors SEMO calculate an emissions factor for each thermal fuel type Data is sourced from EPA (Ireland) and DOE (Northern Ireland) SEMO applies emissions factors to Supplier mixes to calculate each Supplier’s emissions factor

11 Fuel Mix Disclosure – Interim Calculation Calc based on: Bilateral contracts (in & out of market) PPAs in Ireland Relevant Arrangements in Northern Ireland Bilateral contracts for imports and related REGOs UK Residual applied to Imports not covered by Bilaterals

12 Fuel Mix Disclosure – Enduring Calculation Calc based on: Guarantees of Origin (including Imports) PSO PPAs in Ireland Generator Attributes EU Residual applied to remaining demand

13 GO Certificates – What is a GO Guarantee of Origin 1 MWh value Guarantee that electricity has been produced from a renewable source Examples of renewable sources: Wind, Solar, Ocean Energy, Biomass, Hydropower, Landfill Gas, Aerothermal, Geothermal, Hydrothermal Purpose of GO: to be used in FMD In ROI, GO scheme is administered by SEMO In NI, GO scheme is administered by Ofgem

14 GO Certificates in Fuel Mix Disclosure Legislation came into effect 28 th March 2011 S.I. 147 ROI Scheme only Currently issuing GOs for 2011 These may be used for the 2011 FMD submission May be held over until 2012 FMD submission

15 Imported GO Certificates Ensure REGOs are ‘Retired’ by 31st March 2012 Can do online through Ofgem Registry Any European GOs please inform SEMO ASAP These may not be verified on time for 2011 submission

16 Interaction Fuel Mix and GOs

17 Generator Attribute Pack In order to claim non Renewable generation: Complete the pack Generator advises which Supplier the attributes should be assigned to Done on a quarterly basis

18 Generator Attribute Pack Form

19 Supplier Declarations Supplier may present the information as an All Island Fuel Mix However, submission must be done per supplier licence Supplier must declare: Information provided is true and accurate Valid contracts/PPAs/Relevant Arrangements/Intermediary Arrangements in place Claimed GOs will only be used in this Fuel Mix Disclosure

20 Supplier Declaration Form

21 Key Differences between Interim and Enduring Interim FMDEnduring FMD Supplier ClaimsContracted energy + REGOs (where applicable)GOs (including imported GOs) + PSO PPA contracts + Generator Attributes Residual MixTotal Energy (SEM + out-of-SEM) + Net IC Flow (UK residual) - Supplier Claims Total Energy (SEM + out-of-SEM) - exported GOs - Supplier Claims (excluding imported GOs) + EU Residual Mix (as applied to unassigned energy based on movement of GOs) Overall MixResidual Mix + Supplier Claims Supplier Mix[(Metered Demand – Within SEM Claims) * Residual Mix] + Supplier Claims (including Out- of-SEM) [(Settlement Net Demand – Within SEM Claims) * Residual Mix] + Supplier Claims (including Out-of- SEM)+ Adjustment for unused PSO Generation (ROI only)

22 Key Differences between Interim and Enduring Interim FMDEnduring FMD Loss FactorsIndividual Loss Factor applied to each Generator - (adjust down) Single Loss Factor applied to all demand: representing the difference between Generation (adjusted for Net IC flow) and demand - (adjust up) Imports/ExportsActual Interconnector Flows (UK residual applied to imports) Imported GOs + Exported GOs (EU residual applied to any unassigned generation based on this movement) Other CategoryUnder 2.5% of total GenerationUnder 1% of total Generation Emissions FactorsCalculated by SEMO and applied to Supplier’s Mix

23 Key Differences between Interim and Enduring Interim FMDEnduring FMD Supplier Submission DeadlineEarly May31st of March Publication TimeframeJuly/August30 th of June Data onto billsTwo months after publication (overseen by CER)

24 FMD - Timeline