CER offices, Dublin 26 August 2010

1. Retail Market Harmonisation Working Group Update on Harmonisation Project CER offices, Dublin 26 August 2010

2. Background • Following its acquisition by the Electricity Supply Board of Ireland (ESB), NIE now intend to proceed with a SAP-based architecture for the Enduring Solution. • Whilst the overall objectives of the project will remain unchanged, a Requirements Review is currently underway to develop the details of this approach. • This pack: • Provides further details of the Requirements Review • Provides a preliminary view of potential areas for further harmonisation between the NI and RoI markets resulting from this change in approach • Sets out the timeline for the HRDS change control process through which any changes are considered by all market participants

3. Enduring Solution Implementation Plan – as was

4. Enduring Solution Implementation Plan – current

5. NIE Requirements Review • Objectives include: • To confirm impacts of adopting SAP for NIE • RR activities must integrate into detailed design and delivery timetable • Intention to retain original ES timetable and avoid negative impacts on suppliers • Deliverables to include: • Revised contractor solution for NIE • Revised detailed implementation plan • Timeline: • Analysis and impacts to be completed September 2010 • Thereafter, any market facing changes to progress through change control

6. Scope of Requirements Review • RR will consider differences in existing NIE and ESB Networks ways of operation (both processes and data) • Supplier facing processes • Reflected in the Harmonisation Baseline agreed January 2010 • Some enduring differences agreed at that time • Any changes to the HB are subject to HRDS change control procedures • HRDS change control procedure includes supplier consultation and HSG signoff • Internal business processes • RR will also look at NIE business processes within the scope of the Enduring Solution • Any change to an internal business process which has a consequential knock on effect on a supplier facing process will be handled through HRDS (as above) • Changes which do not impact supplier facing processes (either directly or indirectly) will not go through HRDS • All changes (irrespective of source) will be subject to full project change control, including assessment of impact on time, cost and overall quality of solution

7. Current Status • Workshops are underway as part of the Requirements Review to confirm impacts of SAP solution to NIE requirements • Whilst too early to provide definitive results, we expect that: • in the main - the existing ESB SAP solution and processes will be adopted with limited impact on the Harmonisation Baseline • any changes which impact the Harmonisation Baseline (including any opportunities for further harmonisation) will be advised to both HSG and HWG via the HRDS change control process • Certain differences, identified earlier at HSG, are likely to remain (and thus need changes to ESB SAP as implemented for NIE). Examples include: • Technical differences – eg in meter config and technical data • Regulatory differences – eg de-energisation of occupied properties • Market differences – eg keypad metering • Complex differences in business processes – eg meter read cycles

8. This is still needed as a stable baseline against which to sign off the ES design for NIE (due Dec 2010). HRDS change control must be exercised by then. Impact of Current Plans on Harmonisation Baseline • January 2010 • HB Version 1.0 • Baseline for Wipro contract • - Includes RoI June 2010 release • (optionally) Summer 2010 • HB Version 1.1 • RoI changes only for Nov 2010 release • No impact on NI NIE Enduring Solution Release May 2012 • November 2010 • HB Version 2.0 • Changes arising from ES Design • Other RoI changes as needed June 2010 • 2011 / first half 2012 • HB Version 2.x • emergency changes in both jurisdictions only November 2010 • Second half 2012 • HB Version 3.0 • Post ES Go Live release(s) for • both jurisdictions November 2011 ESB Market Systems Releases

9. Update on Technical Harmonisation • Following the decision to adopt ESB SAP IS(U) for NIE • SAP will be the common core technology North and South • It makes sense for both ESB and NIE to extend SAP further into common messaging technology • Options have already been explored in RoI • On this basis we expect SAP PI to be implemented in both jurisdictions

10. Application of HRDS Change Control process • Areas of potential change highlighted on following slides. However: • The list is a preliminary one for advisory purposes only, and is likely to change further • Precise details of many of these potential changes are still being developed • Proposed dates in the HRDS change control process: • HSG meeting 10 September 2010 – HSG briefed on potential changes • HWG meeting 12 October 2010 – DRs raised for all proposed changes • HSG meeting 26 October 2010 – HSG advised of proposed changes in DR pipeline • HWG meeting 18 November 2010 – Agreed changes recommended as an MCR • HSG meeting 2 December 2010 – HSG approve MCR for incorporation in Harmonisation Baseline and ES Baseline

11. Potential Changes to Harmonisation Baseline

12. Potential changes for wider consultation