Ofgem Open Letter – Next Steps Transmission Workstream

2 Immediate issue - QSEC  National Grid NTS believes that the September QSEC should be run as planned.  However we have evaluated a number of options and would like User input on these.  The intention at present is that the auction invitation will be issued on or about the 16 August.  Therefore any action to change this timing needs to be undertaken imminently.

3 QSEC Timing Options

4 Workshops  Three workshops have been planned to consider the issue of Baselines and associated topics, most notably substitution.  Workshop 1:14 August  Presentation & discussion on the approach taken to set the current baselines  Timeline for reviewing associated issues  Workshop 2:17 August  Discussion of methodology for setting baselines  Interaction with substitution  Workshop 3:12 September  Presentation of options for setting baselines and approach to substitution

5 Discussion  Comments on workshops  Timings  Content