1. IGT and Shipper Workgroup meeting 28 th February 2011

2. Shipperless & Unregistered Industry Workgroup - Background Xoserve chair an industry Shipperless and Unregistered Workgroup and for the last 12 months this group having been looking at root causes that contribute to sites without a registered user. Over 15 root causes have been discussed, one of which was the creation of sites on UK Link that are in fact IGT sites. A draft report is due to be published for comment at the next Shipperless and Unregistered meeting planned for the 6 th April, this will provide recommendations following the 15 root cause discussions. All details of these meetings are published on the Joint Office website: www.gasgovernance.co.uk

3. Preliminary recommendations regarding the prevention of creating IGT sites on UK Link: Xoserve are presently conducting a trial of a DN’s mapping system to understand the benefits in identifying possible IGT sites/areas contained within a specific Network. This trial was originally adopted for UIP requested MPRN creations only. Subsequent analysis of IGT sites removed from UK Link this year however, indicated that all requests to create an MPRN on UK Link had been generated following a shipper request. This activity has therefore, been rolled out to other teams within Xoserve to review. Xoserve check the IAD system for IGT information as a validation for the M Number Creation Process. In order to ensure this proves an effective method, it has therefore been recommended at the industry meeting that IGT’s update their SCOGES (Single Centralised portfolio on a more regular frequency and at the soonest available opportunity within the process). Recommendations have been raised for shippers to adopt a best practice template containing system options and questions that should be asked of consumers. This will assist in identifying IGT sites and prevent requests being submitted to create them on UK-Link One of the recommended questions was for shippers to ask consumers for information from the label on their pipe work and that if it was identified the MPRN began with a 7 it would indicate an IGT pipe work. Further analysis has signified however, that not all IGT’s are labelling pipe work. A recommendation is therefore being put forward that IGT’s should also be part of the request to review the entire governance arrangements on labelling paperwork. If anyone has any questions please send them to mark.woodward@xoserve.com Shipperless and Unregistered Industry Workgroup

4. MOD 0362 and iGT UNC

5. CSEP NExA (Annex A Part 5) requires iGTs to issues reconciliation volumes to the upstream Distribution Network CSEP NExA and iGT UNC (iGT UNC E11) restricts the meter readings that can be utilised for reconciliation to “Valid Meter Readings” “Valid Meter Readings” (iGT UNC E1.4) do not include estimated Opening Meter Readings provided by the iGT (iGT UNC E6.8) Agreed Opening Meter Readings (iGT UNC E6.5) iGTs and Users have highlighted this as a key reason why there is a lack of reconciliation volumes submitted in respect of CSEP Larger Supply Points. risks associated with unreconciled energy and Transportation charges Overview

6. “Valid Meter Readings” (UNC TPD M3.1.4) do not include estimated (‘notional’) Opening Meter Readings provided by the DN (UNC TPD M3.8.5) Agreed Opening Meter Readings (UNC TPD M3.8.7) However estimated Opening Meter Readings can be used for Individual NDM Reconciliation (UNC TPD M3.8.5(a)); and Agreed Opening Meter Readings can be used for Individual NDM Reconciliation (UNC TPD M3.8.8(c)) UNC Terms for DN Connected Supply Points

7. UNC Modification Proposal 0362 Proposes to extend scope of Meter Readings eligible to be utilised to generate reconciliation volumes. In addition to ‘Valid Meter Readings’: Estimated Opening Meter Readings; and Agreed Opening Meter Readings Would be consistent with UNC terms Proposal was considered by UNC Modification Panel on 17 February 2011 Determined to be subject to ‘self governance’ (UNC Modification panel will determine whether to implement) UNC Modification Panel determination expected 16 June 2011 Referred to Distribution Workgroup for assessment (to report to UNC Modification Panel in April 2011) Proposed Change to CSEP NExA Annex A Part 5

8. iGT UNC potentially inconsistent with prevailing UNC terms and proposed CSEP NExA Annex A Part 5 terms DNs unable to initiate change to iGT UNC Request to iGT UNC parties to consider the points raised and whether pursuit of an appropriate iGT UNC change is required iGT UNC Alignment

9. As at January 2011 3,995 live LSP LMNs 1,569 (39%) with some reconciliation activity 2,426 (61%) with no reconciliation activity 6,159 closed LSP LMNs 3,238 (53%) with some reconciliation activity 2,921 (47%) with no reconciliation activity How much additional energy / periods could be reconciled if estimated Opening Meter Readings and Agreed Opening Meter Readings could be used for reconciliation? Both UNC 0362 and the potential reflective iGT UNC Proposal would be enhanced by quantification of this benefit Benefits