1. Senior Stakeholder Forum
Tuesday 8th October 2013

2. Agenda Welcome & Introductions Industry Change Programme (2015)
European Reform Chris Logue (NGT)
SMART DCC Day One Sharon Johnson (BGT)
Nexus Andy Miller (Xoserve)
Key Industry Risks Nick Salter (Xoserve)
UK-Link Programme
Programme Update Sandra Simpson (Xoserve)
Key Risks & Issues Sandra Simpson (Xoserve)
Transition Options Sandra Simpson (Xoserve)
Outstanding Actions
AOB, Next Meeting & Close

3. Industry Change Programme (2015)

4. European Developments
Senior Stakeholder Group
8th October 2013
Chris Logue – EU Policy Manager

5. European Codes
European Codes are legally binding, there are 12 code areas
Framework Guidelines, will be developed by ACER are a key scope setting step, ACER have 6 months to develop FG
Ofgem is actively involved in ACER and takes part in framework guideline development
ENTSOs then have 12 months to draft Codes, Stakeholders heavily involved
Once the Code has been approved by ACER, it goes into Comitology stage, where DECC will input for UK 5

6. European Network Codes
Obligation on ENTSO’s and ACER to develop EU wide potentially binding codes in 12 different areas
network security and reliability rules;
network connection rules;
third party access rules;
data exchange and settlement rules;
interoperability rules;
operational procedures in an emergency;
capacity allocation and congestion management rules;
rules for trading
transparency rules;
balancing rules
rules regarding harmonised tariff structures;
energy efficiency
network security and reliability rules;
network connection rules;
third party access rules;
data exchange and settlement rules;
interoperability rules;
operational procedures in an emergency;
capacity allocation and congestion management rules;
rules for trading
transparency rules;
balancing rules
rules regarding harmonised tariff structures;
energy efficiency

7. Code Status Update Code Current Status Implementation date
Congestion Management (CMP)
UNC0449 Modification raised and progressed via the Tx Workgroup process, Ofgem approved 20 September 2013.
1st October 2013 (Fixed)
Capacity Allocation Mechanism (CAM)
CAM approved for EU Wide Implementation at relevant EU IPs 1st November 2015.
1 November 2015 (Fixed)
Gas Balancing
ACER provided a positive opinion on the code on 20th March 2013 and comitology started in July Final comitology meetings took place on 1st and 2nd October.
Oct 2015 some elements may have longer (subject to NRA approval) TBC
Interoperability
ENTSOG submitted this Code and its 'analysis of decisions' document to ACER on 10th September ACER is scheduled to produce its 'reasoned opinion' on the Code by 10th December 2013
Q (Estimated)
Tariffs
Final FGs extended until Q to allow more consideration of Cost Allocation methodology. ACER consultation on Cost Allocation methodology section of Tariff FG and Tariffs for Incremental Capacity closed 17th September . Publication of FG expected by 30th November.
Estimated earliest mid January 2017
Incremental Capacity
CEER-ACER joint workshop held 3 June (Brussels) to discuss their Blueprint for Incremental Capacity. ACER consultation closed 17th September. Incremental expected to be introduced via combination of new articles in CAM Network Code and via Tariffs Network Code.
TBC

8. Gas Codes Timeline Status of Development of European Gas Network Codes
Future dates are subject to change
KEY
Dates shown in
italics
are best approximations based on current understanding.
Activities undertaken by ACER
It has been necessary to 'round' some dates for the benefits of the diagram
Activities undertaken by ENTSOG
Activities undertaken by European Commission
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Interoperability & Data
Exchange
Tariffs
ACER Develops
Framework
Guidelines on
Redraft of Network Code after
public consultation
ENTSOG Drafting
Initial drafting
Cons
ultatio n
Awaiting Publication of the
revised final ACER FG
Awaiting Final Approval by
EC before going to
Comitology
Implementation of CMP
obligations for 1st October
2013
Next Step
Network Code /
Guideline
Congestion Management
Principles (CMP)
Capacity Allocation
Mechanisms (CAM)
Balancing
2016
Go Live
2015
2014
2012
Post-Comitology
FG Extension
Go Live (?)
ACER Review
ACER
Review
ENTSO G
revision
of Code
Initial
drafti ng
Develops
Interoperability
ultati on
Finalise
drafting
(duration
unknown)

9. EU Code & Legislation Implementation
October 2015

10. EU Code & Legislation Implementation
Each tranche of Third Package code (CMP, CAM, Balancing, Interoperability and Tariffs) contains requirements for translation into the GB regime
It is for TSOs to decide what the logical grouping of implementation phases should be in order to achieve compliance
NG NTS believe that compliance against the EU legislation, including Third Package codes can be best met through implementation phases
Each phase will have a particular IS release plan and associated UNC, Licence and process changes 10

11. Phase Contents Phase 1a Congestion Management Principles Phase 1b
CMP – Long Term Use It Or Lose It
Enhanced Data Provision
REMIT
Phase 2a
Gas Day
Phase 2b
Interoperability and Data Exchange
Capacity Allocation Management
Balancing
Phase 3
CMP – Short Term Use It or Lose It
CAM – Long Term Capacity Auctions
Interoperability
Phase 4
CAM – Incremental Capacity Auctions
Incremental Capacity
Tariffs 11

12. High level Roadmap CMP CAM Tariffs Other 12 Today 2014 2015 2016 2017
Balancing
Interoperability
Tariffs
Other
Today
2014
2015
2016
2017
2018
Phase 1a
From 1st Oct 2013
Surrender process (UNC Mod 0449)
Phase 1b
By Oct 2014
LTUIOLI & enhanced provision of data to ENSOG platform
Other EU legislation –
REMIT
Phase 2a
either 1st Oct or 1st Nov
Gas Day (enabler)
Data exchange, allocations & Gas Quality reporting
Short term auctions (within day + day ahead +monthly ) capacity allocation arrangements at IPs
Cross border nominations etc
Phase 2b on or before 1st Nov
Phase 3
Short term UIOLI
Long term capacity auctions from Mar 16 (effective 1st Oct 16)
Gas quality data publication
Phase 4
Incremental capacity auctions at IPs (TBC)
Implementation of tariff arrangements at IPs (2017)
Other codes
(TBD) [Trading Code] 12

13. UNC Modification and System Development
Phase 1a for substantially completed for 1st October 2013
Includes initial delivery of CMP via UNC Mod 0449
Phase 1b delivery during 2014
REMIT – awaiting implementing acts…..
CMP – LTUIOLI mod to be raised in time for Oct 14 implementation
Phase 2a for completion by October 2015
Includes Gas Day delivery via UNC Mod 0461
Mod 0461 is under development and some initial system analysis work has already been initiated 13

14. UNC Modification and System Development
Phase 2b – (Nov 2015)
CAM
Bundled cross border capacity (Bacton and Moffat)
Splitting the Bacton ASEP
Use of common booking platform (PRISMA)
Balancing
New nomination process at IPs
Interoperability
New allocation process (OBAs?)
Common data exchange protocols (AS4, 14

15. DCC Go-Live – Supplier View
Introduction
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Date : 8th October 2013
Sharon Johnson 15

16. The next five years will see constant change for suppliers
2014
2015
2016
2017
2018
Smart Metering
Nexus
Xoserve Upgrade
COS Reform
System Impact
DCC Go Live
Q3 Market Integration Testing
Design and Build
Cutover
Volume Deployment SMETs2
Gas Metering Reading Submission
Quarterly Submission
More Frequent than Quarterly Submission (Optional)
Nexus Go Live
Market Integration Testing
IGT Harmonisation
Gas Metering Point Reconciliation Commences
Market Integration Testing
COS Build
Centralised Registration
COS Design
CRM
DCC/SEC Implementation
Bug Fixes
Acquisition & Withdrawals
Industry Interactions
IGT
Consequential Change & new Smart Gateway
New Industry Processes Implementation
Metering
SMETS2 Readiness
Asset & Work Management to support Roll Out
Billing & Settlement
Billing and Prepayment Operation
Settlement Operational Enhancement as smart meters get roll out
Slide 16

17. We have a good view of what DCC Day 1 looks like
DCC Illustration
Key Changes:
New Security capabilities
Changes to IS Operating Model and E-E Service Levels
New Integration Layer
New Processes – training of smart operations staff and SEEs
Changes to job booking criteria
Metering Operations changes
Supply Chain
Logistics
Asset Management and Faults
Dumb
Phase 2b
Phase 3
SMETS1
SMETS2
Success will depend on:
Design Clarity
Effective Governance
Successful testing phase
SEE
Slide 17

18. Delivery of Nexus within DCC Go-Live timescales is helpful, earliest clarity on plans needed
Allows us to move incrementally to more frequent read submission – delivering the benefits of smart in a controlled way
Allows focus on other changes that are coming down the track
Some assumptions / asks:
Clarity on Plan as soon as possible so we can plan engagement.
Delivery IGTs early, ahead of main DCC go-live activities would be helpful
Clarity on design – so we can impact ways of working
Ongoing visibility of plan, and of testing requirements
Slide 18

19. Nexus Modifications

20. UNC Mods developed in PNUNC
Functionality area
Implications for Shippers / Suppliers
Implications for others
iGT Agency Services
UK Link file format changes
Changes to internal systems and data preparation to move to common GT arrangements.
Funding discussions with industry under development
iGTs – process changes for supply point register and admin activities.
Xoserve – take on of 1.5m supply points
Contracts& data preparation
Settlement products
Choice of 4 products
For SSP shippers product 4 is least change to today’s world
Increase in volume of reconciliations
Xoserve – increase in volume of reconciliations 23m across the industry
Read validation
Once loaded read used for AQ and rec
Periodic AQ
Move from annual to monthly process (depends upon read submission)
Retrospective adjustment
Change to operational procedures
Note: The above are Xoserve’s initial view for discussion of significant implications

21. Nexus Modifications Update
Modifications 432 & 453 (Settlement Regime Mods) and Modification 434 (Retrospective Adjustments)
Targeted for Ofgem approval in March 2014
Timescales for the production of the draft modification report are challenging
Work is taking place to ensure mapping between legal text and BRD.
Modifications 440 (Single Service Provision)
Target submission to January Mod Panel with approval in March / April
Industry review of legal text to commence in November

22. Nexus Modification Update
iGT 039 modification
Development continues until Q1 2014
Target approval June 2014
New Modification 467
A new modification raised for the data preparation exercise for iGT/single service provision
Further modifications will be required to deal with transition matters

23. Data Cleansing Update
Xoserve continues to work with organisations on a 121 basis and at industry group level
First Data Cleansing quarterly forum held in September
Good level of attendance and understanding
Feedback received from some organisations on the ability to resource this activity

24. Key Industry Risks
Industry bandwidth to absorb all change in a short period of time; EU, SMIP, Nexus
Extent of any Gemini changes required for Nexus mods unknown until Q2 2014
Going live with inaccurate data may pose risk for shipper and industry
Establishing new business as usual operations for allocation, read submission, AQ and reconciliation

25. UK-Link Programme Update

26. UK-Link Programme Update
Logical Analysis continuing (Xoserve & Cap Gemini)
Level 3 Process Modelling complete and Level 4 in progress until the end of the Jan 2014
Design, Build, Implement (DBI) workshops taking place with 3 vendors
Separate Organisation appointed as Client Advisor
Preferred supplier for DBI mid November
Commence Detailed Design March 2014
Sustaining activities complete for existing UK-Link system

27. UK-Link Programme Key Risks/Issues
The Nexus modifications will not be approved before April 2014 but the financial approval for the delivery of the programme needs to be in place in March
Mitigation: Xoserve are exploring options with suppliers to commence contract on a T&M basis until approval of the modifications then implement the fixed price contract. Early approval to continue High Level Design will take place in December
Consideration is being given to the transition options

28. UK-Link Programme Transition Options
Option One: Single Release (all functionality)
Risks / issues / considerations:
Can organisations absorb all functionality in one release?
Is it possible to implement changes in close proximity to other industry changes?
Risk over being able to implement settlement reform changes to Gemini over the winter period (October to March) and in close proximity to EU changes

29. UK-Link Programme Transition Options
Option Two: Phased Release Option
Functionality implemented in several releases over a longer period of time
Risks / issues / considerations:
Very complex to implement
Increased effort to run two systems over a period of time
More expensive
Higher risk option from an IT implementation perspective
Considerations on how a phased approach would work for implementing settlement reform changes on Gemini over the winter period (Oct to March)

30. UK-Link Programme Industry Groups
UK-Link Committee
Agree new and amended file formats
Discuss technical matters, e.g. interface architecture
Typically IT people to attend
PNUNC (& replacement)
Modification development (including transition mods)
Discuss business matters, e.g. testing window/plan, transition planning, clarifications during design/development
Programme Updates
Typically business focussed attendees