Review Group 0334 User Pays update – Modifications 288, 289, 290.

1. Review Group 0334User Pays update – Modifications 288, 289, 290. December 15th, 2010.

2. Modifications 288, 289, 290 • Modification 288 – Facilitating the reduction of Enduring Annual NTS Exit (Flat) Capacity by a value less than 100,000kwh. • ROM estimate – Zero cost • Implemented alongside Exit Ph1 release – Zero incremental cost • Modification 289 – To determine the amount of Annual NTS Exit (Flat) Capacity to be released where the quantity of unsold NTS Capacity fluctuates within the Gas Year. • ROM estimate – Zero cost • Implemented alongside Exit Ph1 release – Zero incremental cost • Modification 290 – To facilitate the release of Additional NTS Flat Capacity at National Grid NTS’s discretion. • ROM estimate – Zero cost • Implemented alongside Exit Ph1 release – Zero incremental cost

3. User Pays principals • Rough Order of Magnitude (ROM) • ROM values are estimates – Not a firm price • Value of ROM can go up and down • User Pays-ness definition required at time of Modification submission • Cannot be added later if User Pays costs identified • Ensures that beneficiaries fund User Pays costs • Had this not been done, and incremental costs incurred, proposer would have been liable to pay, even though not the only beneficiary.