Project Nexus Workgroup 9 th September 2014

Background During detailed design a number of areas have been identified that require clarification with either UNC or current processes due to the impacts new requirements have on the processes The areas identified are –Supply Point Category definitions in UNC –Primes and Subs –Supply Points that have been Confirmed in error (Mod 517) –Address updates –AQ Correction –Read replacement –Fixed AQ & SOQ

Supply Point Category Supply Point Category is used for Gas Nomination & Allocation processes in Gemini UNC Section A4.4 states: –DM Supply Point whose AQ is greater than 58,600,000 kwh will be classified as DMC – Gas Nominations at Supply Point level –DM Supply Point whose AQ is not greater than 58,600,000 kwh will be classified as DMA – Gas Nominations aggregated for DM Supply Points at Shipper & LDZ level –DM Supply Point whose AQ is greater than 1,465,000,000 kWh will be classified as VLDMC – Gas Nominations at Supply Point level –NDM Supply Points will be classified as NDMA – aggregate of NDM Supply Meter Points for a Shipper & LDZ Energy Balancing Scheduling charges differ for VLDMC, DMC & DMA.

Supply Point Category cont. Class 1 & 2 will be either DMA, DMC or VLDMC depending on AQ Class 3 & 4 will be NDMA Currently the Supply Point Category (SPC) does not change as a result of the annual AQ review –Based on UNC it should Following implementation of rolling AQ the SPC could potentially change monthly –This will affect the way Shippers submit their gas nominations & view gas nominations & allocations

Supply Point Category Proposals Proposal Supply Meter Point with AQ greater than 1,465,000,000 kWh is VLDMC (no change) All Class 1 Supply Meter Points have a SPC of DMC All Class 2 Supply Meter Points have a SPC of DMA All Class 3 & 4 are classed as NDMA (no change) Where the Supply Meter Point changes Class, the SPC will be changed and the Shipper advised If agreed this will require a change to UNC

Prime and Sub sites A Shipper is able to nominate any Prime or Sub Supply Meter Point that is not DM Mandatory to Class 2, 3 or 4 Shippers will have the obligation to submit reads based on the election of Class (daily reads for Class 2, daily reads in batches for Class 3 & periodically for Class 4). Xoserve, on behalf of the GT, will only request a read for Reconciliation purposes (in order to net off the Prime or Sub meter) and perform reconciliation on the Sub. The request will be triggered based on the lowest denominator meter read frequency of any of the meter points within the P&S configuration in Class 4

Prime & Sub Reads Matrix for Reconciliation Reconciliation only required where daily reads are not received - where the Prime or Sub is a Class 4 Supply Meter Point only Class 1 Prime Class 2 Prime Class 3 Prime Class 4 Prime Class 1 Sub XXXY Class 2 Sub XXXY Class 3 Sub XXXY Class 4 Sub YYYY

Prime and Sub sites cont. Shipper will be responsible for carrying out Check Reads for Supply Meter Points in Class 2, 3 & 4 & notifying Xoserve of the info & re-synch where applicable (if AMR is fitted). –This obligation will not default to the GT The Shipper will be responsible for submitting the transfer read, where not submitted an estimate will be loaded Must Reads are applicable to P&S

Confirmed in Error (Mod 517) Current process; –Shipper submits a query via CMS (ECO) along with ‘Warrant’ –Where valid and accepted the Shipper is notified and requested to submit an Isolation & Withdrawal –A dummy meter is recorded by Xoserve to enable the Shipper to isolate & withdraw (current system constraint) –Any financial adjustments are processed once the I&W is recorded Proposal; –Shipper submits a Withdrawal (no requirement to attach asset record) –The financial adjustment is processed once the Withdrawal is confirmed and effective

Address Updates If an address update is submitted that amends the LDZ and or Exit Zone this will be effective 2 days from receipt without the need for the shipper to re-confirm Where there is a change in the LDZ and potentially a change in the rates applied for transportation charges an updated Offer must be submitted (UNC section G2.4) So, where there is an address update which changes the LDZ or Exit Zone an updated Supply Point Offer will be issued to the Shipper

AQ Correction The AQ Correction process was designed around the existing process for a Shipper to update an AQ (BTU) Recognised that a process will still be required for exceptional circumstances to change the AQ –New business activity (G1.6.21c) –Theft of Gas (G1.6.21a) –Read fails the Outer Tolerance (‘Market Breaker’) (G1.6.22) –Material change in consumer plant (G1.6.21b) Currently for a new business activity the Shipper must submit the request 23 business days from Registration Proposal that a limit for a new business activity request to continue –If agreed needs to go into UNC

Read Replacement Proposal agreed to allow updates to Supply Point and meter information for an effective date pre Go Live Proposal to also allow replacement of meter reads submitted pre Go Live –Negates the need and complexities around submission of consumption adjustments during the cutover period Same rules would apply as defined by Mod 0434 –Reads are validated against the tolerances –Only the Shipper who submitted the read can replace it –Can only replace an existing read, no in-fill reads, unless submitted with an asset update –Read must be higher than previous actual read and lower than subsequent actual read

Fixed AQ & SOQ For Class 3 and 4 Supply Meter Points there will be two AQ’s & SOQs; –Rolling AQ for allocation purposes –Fixed AQ & SOQ for transportation charges The fixed AQ & SOQ will be the value set on 1 st December each year and will go live for transportation charges in the following April On implementation date the AQ & SOQ used for transportation charges will be the value set on 1 st October 2015 On 1 st December 2015 the AQ & SOQ will be set and effective for 1 st April 2015 transportation charges