1. The Next Step Chandra Trikha System Planning Manager SHETL

2. The Next Step Developments of Scenario. Application of methodologies to the scenario. Evaluation of outputs and methodologies. Proposed SQSS changes Impact Assessment Report to the Review Group Industry consultation Change request submission to the Authority.

3. Review Group - Principles Licensees can discharge their obligations Develop, maintain and operate an efficient, economical and coordinated transmission system. Ensure that the users of the transmission system have appropriate level of Security and Quality of supply. No discrimination Facilitate effective competition in supply and generation.

4. Working Group – Evaluation and Assessment The working group will provide the following to the Review Group: Criterion for evaluation of methodology. Provide methodology details to the review group. Provide appropriate and sufficient information to the Review Group to enable –Industry consultation –Parties to carryout assessment.

5. Stage 1 Evaluation Criterion In evaluating methodologies the WG will use the following evaluation criterion (a)Level of Security and Quality of Supply using each methodology. (b)Consistency in application. (c)Ease of application. (d)Gives “Appropriate” level of transmission. (e)Results in a deterministic standard with guidance on economic assessment. (f)“Fits Well” to the current market arrangements. (g)Transparency in application.

6. Evaluation Criterion (a)The level of Security and Quality of supply the methodology provides. The WG will be seeking to achieve “NO LESS and NO MORE” Security and Quality of Supply to the users of the transmission system than the current SQSS provides.

7. Evaluation Criterion (b) The methodology has consistency and repeatability. The aim is to ensure that the application of any new methodology results in consistent and repeatable answers i.e. applying the methodology by separate licensee for similar background conditions results in similar outputs.

8. Evaluation Criterion (c) Ease of application. The WG will consider the relative simplicity of the methodology to ensure that the it can be easily understood and applied by engineers using generally available analysis tools and does not require complex detailed simulation, investment in bespoke analysis tools etc.

9. Evaluation Criterion (d) The methodology gives ‘Appropriate’ level of transmission. Evaluation will take in to account that the licensee is required to develop its transmission system in an efficient, economical and coordinated manner. Licensees are seeking to determine the most appropriate level of transmission to achieve an optimum solution.

10. Evaluation Criterion (e) Investigate how the methodology delivers the deterministic criteria and what guidance is given on the options for economic assessment. It is generally accepted and we believe that a deterministic standard is easy to apply, transparent, defendable and gives clear messages whereas an “economic” assessment based standard brings with it the burden of uncertainty and contention.

11. Evaluation Criterion (f) The methodology “Fits Well” with the current market. Does the methodology provides accurate and appropriate signals to enable participation in the market in a non discriminatory manner.

12. Evaluation Criterion (g) The methodology is transparent in application. The degree of transparency could be judged on the basis that the licensee can simply explain the methodology to an Inspector (during planning application process); or to a Regulator for justifying investment and operating costs.

13. Industry Views on Evaluation Criterion It is vital for the GB SQSS Review Group to engage with the industry and seek their views on the following important factors such as Wind generation and Security of Supply. Access to the system. Consistency of application. This workshop is first of such opportunity.

14. Stage 2 Assessment of Methodologies The Working Group is developing a scenario for the years 2007/08, 2013/14 and 2020/21. The methodologies will be applied to this scenario. The output at selected boundaries (e.g. SHETL – SPT and others) will be assessed against the review group principles and evaluation criterion. The aim of the working group is to prepare a proposal for the GB SQSS Review group.

15. Stage 3 Industry Consultation The WG proposal will allow the GB SQSS Review group To conduct an industry consultation. Allow review group parties to assess impact. Submit to the Authority a change request. This will be an other opportunity for the industry to express their views.

16. Your suggestions Your comments, suggestions, observations, and views will be appreciated by the WG. Please e-mail the GB SQSS Review Group secretary at GBsqss.Review@uk.ngrid.com