Sunday, 04 October 2015 UNC Mod Action WG0505: Provide for discussion/development the potential categories of connection offer and associated timescales and costs

Exit - Minimum Offtake Exit - Minimum Offtake & pipeline / network reinforcement Entry – New Entry Point Entry – Expansion to Existing Entry Point Storage Time (from formal Application to provision of Offer) 3 months[6] months (+ 3 months extension?) [9] months (+ 3 months extension?) [6] months (+ 3 months extension?) [9] months (+ 3 months extension?) Cost of Application Fixed price = [£30k] application fee or Variable price application fee (methodology TBC) Fixed price application fee or Variable price application fee (methodology TBC) Content of Offer1. All necessary engineering studies 2. Construction agreement 3. Price, Program, Layout 1. All necessary engineering studies 2. Construction agreement [3. Route corridor for pipeline.] 4. Price, Program, Layout 1. All necessary engineering studies 2. Construction agreement [3. Route corridor for pipeline.] 4. Price, Program, Layout 1. All necessary engineering studies 2. Construction agreement [3. Route corridor for pipeline.] 4. Price, Program, Layout 1. All necessary engineering studies 2. Construction agreement [3. Route corridor for pipeline.] 4. Price, Program, Layout Type Details

Supplementary Notes Do we need additional categories for new and existing connections? - Proposer’s initial view that first task should be to clarify process for new connections then adapt model to fit. In all cases, a 3 month post-offer “acceptance period” would apply. Content: “All necessary engineering studies” – Covers feasibility, pre-feasibility, conceptual design studies, etc. Costs – Covers the cost of producing necessary reports to produce an estimate of the full costs of physically connecting to the network. It would not cover the actual cost of physical works, nor entry or exit capacity costs. 04 October 2015, E.ON, Page 3

Supplementary Notes (cont’d...) Costs: If customer wishes to change details of the application, there would be a cost associated with this (level of such costs to be discussed / developed). 3 month extension – An option for more complex projects. Should it be limited it to how many times such extensions can be exercised by NG NTS in one year? Ofgem role? CUSC (electricity model): - CUSC application fees – capped at £400,000 + VAT - If unusually complex NGT reserves right to remove fixed price option 04 October 2015, E.ON, Page 4