1. The AQ Operational Review Group ‘Mid-process’ Forum Via teleconference 4 th September 2014 “Whilst every effort is made to ensure the technical accuracy of the information contained within this presentation, Xoserve can accept no responsibility for any claims (however they arise) made against the company as a result of using the information contained within this presentation”

2. Agenda AQ 2014 so far Amendment window update AQ Timeline BSSOQ/Primary AQ amendments AQ1 Threshold Crosser exercise - Updated position Filtered AQ1 population exercise - Updated position On the horizon The ‘Backstop date’ in UKLink replacement system Revised MOD81 Reporting suite Modification 450b – Impending implementation A.O.B

3. Amendment window volumetric’s As at 14 th August 2014 Total Amendments received:10,591,208 Total accepted: 9,588,251 Capacity utilised:72% Total capacity for window:13,250,000 Highest volume of Amendments ever received Reasons for increase?… Views?

4. Amendment window review/Lessons learnt Daily capacity across the Industry – 250k Submissions exceeding this volume will be rejected Refer to profile capacity for assured submission volumes Files may still be processed if you exceed entitlement If sufficient spare capacity Otherwise files will ‘roll-over’ (except if >250k submitted) Good practise to keep record count (per file) small Please advise of unusual/high submission volumes Including Spec Calc files

5. AQ2014 Timetable

6. BSSOQ/Primary AQ Amendments Amendment window for these sites also closed 13 th August Amended NDM Primary/BSSOQ calculations applied Ad-hoc process on 21 st August To assist a report will be provided to affected Shippers Confirming amended calculations To be issued w/c 25 th August Calculations effective as at 1 st October Request that upon receipt you review

7. AQ1 Threshold Crossers Revised AQ proposed for 2,973 MPR’s Dataset issued 28 th May Initial total energy applied:4,461,519,240 kWh Very encouraging response rates… 2,107 MPR’s revised Thank you for your efforts Total energy as at 11 th August:827,826,485 kWh Opportunity to revise until 31/12/14

8. AQ1 Threshold Crosser exercise - Update AQ Banding Volume 28 th May11 th Aug 100,000,000 +41 50,000,000 +30 25,000,000 +173 10,000,000 +516 5,000,000 +534 1,000,000 +634120 500,000 +602147 250,000 +462123 100,000 +732297 73,200 +415165 Total sites: 2,973 Energy (28/05): 4,461,519,240 11 th August volumes reflects sites which have not been revised Ongoing support available from AQ team if required Energy (11/08): 827,826,485

9. AQ1 Threshold Crosser exercise – Shipper summary Shipper Total (28 th May) Total (11 th Aug) Shipper Total (28 th May) Total (11 th Aug) Athens 87 61 Tokyo8349 Rome 17 4 Ottawa246 Frankfurt 1,167 183 Lisbon244 Rio De Janeiro 1 0 Istanbul10 Sofia 3 0 Havana33 Geneva 65 63 Montreal139117 Canberra 1 2 Mexico City15943 Helsinki 11 0 Christchurch164 Copenhagen 65 10 Sydney45856 Casablanca 34 9 Reykjavik55 Durban 11 6 Bangkok11 Auckland 171 69 Delhi9526 Paris 1 1 Cardiff97 Florence 1 1 Stockholm93 Berlin 59 28 Prague2317 New York 16 5 Budapest62 Oslo 160 56 Caracas186 Melbourne 8 5 Port Elizabeth224 Queensland: 2 sites registered since original dataset Shipperless: 8 sites

10. Filtered AQ1 Population Xoserve manually validated the ‘Filtered Population’ 318,992 sites in original AQ1 dataset As a result 17,892 sites reviewed by the AQ team Equating to 5.6% of total AQ1 population Of which 8,406 sites appeared to be consuming Equates to 2.6% of total AQ1 population Individual Shipper datasets issued 27 th June 2014

11. Filtered AQ1 Population – Next steps We requested Shippers to review individual site history If you concur that site consuming raise an Amendment/Appeal Again, encouraging response rates… 2298 MPR’s revised 27% of initial population Many thanks for your support and investigations We will continue to monitor/report activity (anonymously) Xoserve can offer assistance where required

12. Filtered AQ1 Population – Shipper summary Shipper Total (27 th June) Total (19 th Aug) Shipper Total (27 th June) Total (19 th Aug) Athens 53 38 Tokyo2820 Rome 9 6 Ottawa187 Frankfurt 5450 4188 Lisbon4731 Rio De Janeiro 1 1 Istanbul00 Sofia 1 1 Havana22 Geneva 61 57 Montreal340339 Canberra 0 0 Mexico City490182 Helsinki 36 19 Christchurch169 Copenhagen 90 42 Sydney779481 Casablanca 18 10 Reykjavik77 Durban 17 12 Bangkok00 Auckland 324 224 Delhi177130 Paris 0 0 Cardiff42 Florence 0 0 Stockholm209 Berlin 42 30 Prague2521 New York 4 1 Budapest73 Oslo 269 181 Caracas27 Melbourne 15 7 Port Elizabeth2921

13. Backstop date in UKLR Options presented to Industry via PNUNC & UKLIEF August/September meetings Some of you may have attended/consulted If not please refer to NEXUS lead within your organisation Further discussion therefore suspended via AQ Forum

14. Changes to MOD81 Reporting suite Report on the last effective (accepted) Amendment Only for Reports 1 & 2 For all 3 Releases (1 st July/August/November) Removing duplicate and multiple Submissions Report 2 will also be amended to show the comparison ‘Current’ & ’Final’ AQ ‘Proposed’ & ‘Final’ AQ Reports 1 & 2 will be split by SSP & LSP markets Reports split i.e. report 1a/1b & 2a/2b

15. MOD81 reporting issue: Duplicate amendment counts Error within Release 1 of MOD81 reporting Data published 1 st July 2014 58k duplicate amendment records erroneously reported Reports corrected and re-published Issue identified and communication issued 10 th July Did we reach the right people? Duplicate records removed & will not affect future releases Feedback… Impacts… Concerns?

16. UNC Modification 450b Revised implementation date 25/10/14 Shipper quota to be provided September (D+10) Ability to appeal AQ’s for certain SSP’s Annually between 1st Oct and 31st May A 20% rule will apply in each case Minimum permissible amendment of 4,000 kWh AQ1 sites exempt from these rules Quarterly reporting will be issued via MOD0378 report User Pays service

17. A.O.B

18. Thank you for your participation and support…