EU 21 Day Switching

Contents Bank Holiday Challenge for 21 Day Switching Objection Window –Fixed Reduction –Variable Reduction Confirmation Window Reduction Summary Next Steps

Bank Holiday Challenge 9 UK Bank Holidays –3 pairs – Easter, Christmas, New Year –3 single For a single Bank Holiday scenario, a maximum of 3 days would need to be saved At Christmas and New Year, and at Easter 2011, 2 pairs fall in the same 3 week window. In this scenario a maximum of 6 days would need to be saved

Scenario: 4 Bank Holidays

Solution Options: Reduced Windows Reduction of the Objection Window – Fixed Option –Impacts across SPA Processes, Metering Processes and Reporting Interfaces –The Objection Window could be reduced from 7 business days in duration to a minimum of 3 days –Indicative costs and timescales are estimated to be £200k and 9 months delivery

Solution Options: Reduced Windows Flexibility in the Objection Window – Variable Option –Objection Window would flex between 3 and 7 business days duration dependant on the number of Bank Holidays in the switching period –The objection window would only be reduced by the number of Bank Holidays in the 3 week switching window –Similar level of complexity as the fixed reduction in the Objection Window with similar costs and timescales

Solution Options: Reduced Windows Reduction of the Confirmation Window –Possible impacts across SPA Processes, Metering Processes, Invoicing, RGMA Flows, AQ Review and Reporting Interfaces –The Confirmation Window could be reduced from 7 business days to a minimum of 5 business days in duration –Indicative costs and timescales are estimated to be £500k and 12 months delivery

Common Factors All options maintain the SLA’s associated with SPA file processing All options include costs and timescales that allow for comprehensive analysis and testing phases to ensure no unknown impacts to critical industry processes The maximum reductions recommended to either window allow for batch processes to be completed at all points through the year (e.g. peak activities surrounding AQ review etc.)

Summary Timeline reductions of between 1 and 6 days are required for different periods of the year, dependant on the number of Bank Holidays present in any 3 week period A maximum saving of 4 days can be achieved in the Objection Window and 2 days in the Confirmation Window To reduce these windows further would require a more strategic review of the business rules and/or the serial nature of the windows Alternative options that could be implemented in isolation or in conjunction with the window reductions are available to the industry (8 options previously tabled)

Next Steps Direction of further analysis Timelines for change