1. PN UNC Workgroup Settlement Issues 1 st November 2011

2. 2 Outstanding Issues No outstanding issues for ‘Settlement’ in the issue log, however During an internal review of the BRD a couple of issues raised around –Read submission timescales/targets –Must Reads & Check Reads Based on current UNC, the new rules do not provide more flexibility or protection in some cases Following slides detail the current rules as per the BRD as possible suggestions Possible option for all issues is to retain SSP, Smaller & Larger LSP (e.g. > 293,000 kWh?) within Products 3 & 4

3. 3 Issue: Read Submission Targets Currently in BRD (5.15: Read Submission Performance Targets) –Product 1 :[99%] of sites in the Shippers portfolio per calendar day –Product 2: [97.5%] of sites in the Shippers portfolio per calendar day –Product 3: [90%] of sites in the Shippers portfolio per calendar month –Product 4: [70%] of sites in the Shippers portfolio per calendar month Issue: For Product 3 & 4 there will be a mixture of market sectors (domestic, Smaller & Larger LSP). Are these % still appropriate? Suggest: –Product 3: For SSP [90%] of sites in the Shippers portfolio per calendar month For LSP [95%] of sites in the Shippers portfolio per calendar month –Product 4: For Monthly read meters: [90%] of sites in the Shippers portfolio per calendar month For SSP Annual read meters: [90%] of sites in the Shippers portfolio in a 12 month period For LSP Annual read meters: [98%] of sites in the Shippers portfolio in a 12 month period

4. 4 Issue: Read Submission Frequency 5.8.4: Maximum Read Submission –amended in BRD v0.9 – read will be rejected if there has been a read in the last x days: Monthly Meter Reading Frequency: 7 calendar days Annual Meter Reading Frequency: 25 calendar days Current UNC –M3.7.2 Read rejected where more than one Meter Reading is received by the Transporter; Monthly Read Meter, in any 7 Day period; Larger Annual Read Meter, in any 14 Day period; Smaller Annual Read Meter, in any 63 Day period So for a Larger annual read meter new rules provide for a lesser max frequency than existing with respect to a Larger Annual Read Meters –Currently 14 days, would be 25 days under proposals Is this acceptable?

5. 5 Issue: Must Reads 5.17: Must Reads –Product 1: 4 month trigger –Product 2: 4 month trigger –Product 3: 4 month trigger –Product 4: where the read frequency is monthly: 4 month trigger where the read frequency is annual: 24 month trigger Issue: There is likely to be a mixture of market sectors in Products 3 & 4, so a SSP in Product 3 could receive a Must Read every 4 months. Suggest: –Product 3 & 4: SSP every 24 months Smaller LSP every 24 months Larger LSP every 4 months

6. 6 Issue: Check Reads 5.18: Check Read –Product 1: Every 12 months –Product 2: Every 12 months –Product 3: Every 24 months –Product 4: Every 24 months Issue: Mixture of market sectors in Products 3 & 4 Suggest: –Product 3 & 4: Larger LSP every 12 months Smaller LSP every 24 months SSP every 24 months