Assignment of NTS Entry Capacity Transmission Workstream 02 July 2009

2 Background  Historically NTS entry Capacity has been viewed as “one” product based on end of day entitlements  Entitlements can be traded but there has never been a concept within the UNC of “Assigning” NTS Entry Capacity.  Industry interest has been signalled via Transmission workstream & RG221  Assignment Workstream held 7th April 2009 – National Grid NTS requested minimum requirements to be provided to allow the process to move forward, Industry requested that National Grid NTS explore cost implications further & give consideration as to how the process can be moved forward.

3 Full Solution Rough Order of Magnitude (ROM)  Full system solution including the following:  Applicable from a future date  On an enduring basis  To cater for Full Assignment  To cater for Partial Assignment  Can be applied to all NTS Entry Capacity  Assigned NTS Entry Capacity to be Tradable  Assigned NTS Entry Capacity to be tracked within the Gemini system & feed through to all relevant processes i.e. Invoicing, neutrality etc  Fully auditable

4 Limited solution ROM  Solution limited to the following:  Applicable from a future date  On an enduring basis  Full Assignment only  Long Term NTS Entry Capacity only  Assigned NTS Entry Capacity to feed through to all relevant processes i.e. Invoicing, neutrality etc  Fully auditable

5 Timeframes/Costs Timescale range 9 months – 15 months9 months - 15 months Cost range£300k - £700k£155k - £355k Full solutionLimited solution

6 Next steps  National Grid NTS and xoserve are willing to sit down with interested parties to discuss the details behind the ROMs that have been raised  This discussion should lead to minimum set of requirements/business rules for a UNC modification Proposal