1. 1 Mod Review Group 126 Apr 2007 slides 126 Review Group – Restriction of Invoice Billing Period  These slides describe the business rules for the treatment of NDM reads between the 1 st of the month and the 6 th day of the month of the restricted invoice billing period roll-forward month (April each year) where the preceding meter read date is in the period closed (or to be closed) out.  It is unlikely any reads will be received that actually need to be processed against this rule. This is the main reason for adopting the existing principles.

2. 2 Mod Review Group 126 Apr 2007 slides Illustration of “standard” reconciliation invoicing month R1 R2 Reconciliation period Month + 18 days Charge appears on Reconciliation invoice Month

3. 3 Mod Review Group 126 Apr 2007 slides Illustration of current “standard” reconciliation invoicing month The shaded period exists for the close-out of DM reads. During this time valid NDM reads continue to be loaded. Where a read is loaded with a read date in May, a reconciliation charge is generated that will be included on the May reconciliation invoice to be issued in June. Note: the Reconciliation is carried out for the relevant Meter Reading Period i.e. R2 back to R1 whenever R1 may be. Where a read is submitted between 1 st June and Month + 6 days and the read date is 1 st June or later, the reconciliation will not be processed on the May reconciliation invoice, it will be processed on the June reconciliation invoice. Valid reads loaded after Month + 6 days will generate reconciliation charges that will appear on the June Reconciliation invoice, issued in July 1 st June Month + 6 days May reconciliation invoice period Month + 18 days May reconciliation Invoice issued R1 R2 Reconciliation period 1 st May

4. 4 Mod Review Group 126 Apr 2007 slides On 1st April 2008, the start date of the restricted invoice billing period rolls forward to 1.4.2004 1.4.08 6.4.08 March reconciliation invoice period 24.4.08 March reconciliation Invoice issued R1 R2 Reconciliation period 1.3.08 1.2.98 1.4.04 The business for the shaded area are as per slide 3. Valid meter reads loaded on or after 6.4.08 will be subject to the new restricted invoice billing period that became effective on 1 st April 2008. Where R1 is pre 1 st April 2004, the energy for the now closed out period is not reconciled.

5. 5 Mod Review Group 126 Apr 2007 slides Why doesn’t a March 08 read that is loaded after 6.4.08 reconcile (where required) beyond 1st April 2004? One of the current read validation rules stipulates that read is valid where the read date is within 10 days of the read submission date. Modification 124 changes this value to 15 days. For illustration purposes: Read date 28 th March 2008 Read is submitted 16 th April 2008 Read 1 is 1 st January 2001 Under existing rules the reconciliation period would be 1 st January 2001 to 28 th March 2008 Under the proposed rules the reconciliation period would be 1 st April 2004 to 28 th March 2008 The reconciliation will be calculated in April, and will appear on the April invoice issued on 28 th May 2008. If this read were to be reconciled in full, xoserve and shipper systems would have to recognise that a charge on the April reconciliation invoice (issued in May) may go beyond the implemented restricted invoice billing period in place at that time i.e. 1 st April 2004. This seems a complex rule to implement when the likelihood of receiving a read between the 1 st and 19 th April (approx) that has its meter reading period back to the year to be closed out, is extremely low.