1. Datalogger / DMV Modification Proposals - Summary Simon Trivella – 26 th August 2010 Distribution Workstream - Elexon U P D A T E

2. Content Reminder of June 2010 presentation and potential Modification Proposals Modification Proposal 0224 (DM Elective) Update Daily Read statistics –DM population changes with DME switching (various scenarios) Update on WWU proposed Modification Proposals U P D A T E

3. Background / Drivers The world is changing – increase in AMR usage and new supplier obligation increases the number of devices attached to meters –More options for obtaining data –More cases of devices being disconnected resulting in lost data and therefore data not being usable DM elective (DME) due to be introduced in November 2010 –Consistent with meter reading being a competitive activity Modification Proposal 0258A already implemented which reflects this changing world –Allows Transporter to procure data from 3 rd parties J u n e 2 0 1 0

4. Background / Drivers DM Unbundling to be considered / developed –Potential lengthy timescales WWU is drafting three Modification Proposals –Priority of position for Transporter equipment –Removal DM voluntary (DMV) sites from DM liability regime –Removal of DMV regime when DME is operational and after transition period Detailed discussions to take place at June 2010 Distribution Workstream Feedback / comments welcome in the interim period J u n e 2 0 1 0

5. DM Elective (DME) Update Implementation Date confirmed as 21 st November 2010 –Phase 1 (21 st November 2010) AQ > 5,860,000 kWh (200,000 tpa) –Phase 2 (21 st November 2011) AQ > 2,196,000 kWh (75,000 tpa) –Phase 3 (21 st May 2012) AQ > 732,000 kWh (25,000 tpa) All Phases subject to a maximum DME count of 25,000 Phase 2 & 3 dates can be later if Transporters determine necessary Modification Proposal required for earlier Phasing U P D A T E

6. Daily Read Statistics U P D A T E DM Sites – All Distribution Networks

7. Daily Read Statistics U P D A T E 532 (30%) of current DM sites are above DM Mandatory threshold –1,241 of DM sites are below the Mandatory threshold (includes Interruptibles) 1,151 (65%) of sites are Interruptible Supply Points –296 of these would remain DMM if Firm Only 36 (2%) sites have AQ <732,000 kWh (not eligible for DME)

8. Potential DM Population Changes U P D A T E

9. U P D A T E

10. U P D A T E

11. Priority of position for Transporter equipment Gives priority of position to Transporter dataloggers and data recorders installed for UNC purposes UNC refers to IGE Meter Recommendations –Installation of Supply Meter only –IGEM/GM/7A proposes that loggers used for fiscal purposes should have priority This does not apply to equipment used for other purposes (e.g. Demand Estimation) We recognise work to develop standard MPU contract For historical reasons Transporter equipment tends to have priority of position Modification raised to regularise situation and ensure that the position is clear within the UNC J u n e 2 0 1 0

12. Priority of position for Transporter equipment Proposal placed on hold –Feedback received at previous Workstreams –Modification Proposal 0258A offers level of protection Revisit at a later stage U P D A T E

13. Removal DM voluntary sites from DM liabilities DMV sites can be from 73,200 kWh to 58,599,000 kWh Not material to daily balancing requirements Daily settlement data requirements are D+5 Removal of DMV from DM liability regime would mean that networks concentrated on the DMM sites that are material to daily balancing J u n e 2 0 1 0

14. Removal DM voluntary sites from DM liabilities Feedback from Distribution Workstream members –Alignment with “competitive” alternative? –Reduction in charges? Competitive alternative (currently) restricted to >732,000 kWh –This would leave an obligation on a small population of DMV No plans to align with DME rollout Proposed amendments –Limit removal to D+1 11am Read Submission (UNC TPD M 5.1) –Reads not provided with D+5 remain subject to liabilities (UNC TPD M 5.2.3) –No changes to rollout “big bang” approach U P D A T E

15. Removal of DMV regime Once competitive activity established then the bundled service should cease to be an obligation –Transporters could act as a DM(E)SP (outside of UNC arrangements) Consistent with meter reading being competitive activity DM Elective will provide competitive alternative to DMV Phased approach consistent with DME rollout Transition period of [3] months following each Phase –1 st Phase transition period of [6] months After transition period all DMV sites become DME or NDM J u n e 2 0 1 0

16. Removal of DMV regime Generally positive feedback from Distribution Workstream members –Issues around <732,000 kWh sites as not eligible for DME Proposal updates –Transition period following Phase 1 to be 6 months –Transition period following Phase 2 & 3 to be 3 months –73,200kWh to 732,000kWh also to be removed 3 months after Phase 3 No competitive alternative (currently) Only 36 sites nationally (18 Firm & 18 Interruptible) Majority of sites are “drifters” (i.e. demand reduced) Consider option to allow existing ‘small’ DMVs to become DME? –Is this a viable option? U P D A T E

17. Next steps Further comments / feedback welcome [Draft] Modification Proposals to be raised in Sept/Oct 2010 –Further Distribution Workstream discussions as necessary U P D A T E

18. Datalogger / DMV Modification Proposals - Summary Simon Trivella – 26 th August 2010 Distribution Workstream - Elexon