1. RMTTSEC – Rolling Monthly Trade and Transfer System Entry Capacity Auction Transmission Workstream, 2 April 2009

2. 2 Agenda  Compare Results for Winter (Nov – Mar) 07/08 to Winter (Nov – Mar) 08/09  Future RMTTSEC Auctions – Online processes – Review update of Methodology

3. 3 Capacity Allocated Winter 07/08 Capacity Allocated (GWh) Location Nov- 07Dec-07Jan-08Feb-08Mar-08 Barrow Allocated from same ASEP 22220 Transfer & Trade00 000 Easington Allocated from same ASEP00000 Transfer & Trade85.3985.83 Isle of Grain Allocated from same ASEP42.330000 Transfer & Trade00 000 Teesside Allocated from same ASEP0 0000 Transfer & Trade23.8248.3242.6241.220 Single Auction (2 rounds) run in October for whole Winter 07/08 Run in addition to RMSEC 4 ASEPs allocated capacity

4. 4 Capacity Allocated Winter 08/09 Capacity Allocated ( GWh) LocationStage Nov- 08 Dec- 08 Jan- 09 Feb- 09 Mar- 09 Easington 1 Surrendered Unsold 4.9 0 4.4 0 0000 0000 7.9 0 2Trade9.883.1102.342.217.3 2Transfer00000 Total14.787.5102.342.225.2 Hatfield Moor 1 Surrendered Unsold 0 10.1 0 7.2 0 1.3 0 4.2 0 7.2 2Trade9.77.47.5 6.8 2Transfer00000 Total19.814.68.811.714 RMTTSEC allocated at 8 ASEPs All Allocations met by unsold/surrendered at the ASEP except : Easington Hatfield Moor Storage

5. 5 Comparison summary Winter 07/08 Winter 08/09 All bid satisfied Unable to satisfy all bids Additional capacity made available at some ASEPs requesting firm capacity Stimulated secondary trading Aggregate capacity allocations at Easington and Teesside exceeded obligated levels Stimulated secondary trading Aggregate capacity allocations at Easington and Hatfield Moor Storage exceeded obligated levels Winter 08/09 Specific Exchange Rates determined in advance (1:1 within zone within limits and up to 19.5:1 out of zone) All at 1:1 Exchange Rates Users at four ASEPs obtained additional capacity, two via T&T Users at eight ASEPs obtained additional capacity, two via T&T Capacity allocated for each of the five months for which it was available Capacity allocated for each of the five months for which it was available One single (2 rounds) auctionAuctions held monthly in two stages All bids satisfied Additional capacity made available at all ASEPs requesting firm capacity

6. 6 CONCLUSION  The RMTTSEC has been successful in moving capacity to where it is valued most  Through undertaking Exchange Rate analysis after the auction, it has been possible to provide the best Exchange Rates  The process has worked smoothly and is now fully embedded into the commercial regime.  It also provides an additional “secondary trading” mechanism

7. 7 Future RMTTSEC Auctions  No changes proposed to Methodology Statement  National Grid required to consult annually on MS  Expected implementation of online system process 17 th May 2009  Shortening of process timeline by 5 days  Surrender window opens approx 23 Business days before month end (currently approx 28 Business days)  RMTTSEC bid window opens approx 15 Business days before month end (currently approx 20 Business days)

8. 8  Results of RMTTSEC can be found www.nationalgrid.com/uk/Gas/Data/CA/reports/RMSEC. htm www.nationalgrid.com/uk/Gas/Data/CA/reports/RMSEC. htm  Any Queries regarding RMTTSEC Auction contact the Entry Capacity Auctions team:- -on telephone number 01926 654057 -or email on capacityauctions@uk.ngrid.comcapacityauctions@uk.ngrid.com