User Pays User Committee 12 th November 2013

1. User Pays User Committee 12th November 2013 • Two new Non-Code User Services are proposed. These are for: • iGT Customer Data Provision Service (to facilitate the Smart metering programme) • iGT Customer Data Preparation Service (to facilitate the iGT Single Service Provision arrangements)

2. Non-Code User Pays ServicesNew Services ScheduleiGT Customer Data Provision to facilitate Smart metering programmeChange Order 008

3. iGT Customer Data Provision Service • Background • iGT UNC Industry decision • iGT Customer Data Provision Service • User Pays Service • Funding • Next steps

4. iGT Customer Data Provision Service UNC and iGT UNC modification background • As part of the Smart Metering Implementation Programme, there is a requirement for Shipper (supplier) data to flow between organisations to enable suppliers to access smart metering services from the Data Communications Company (DCC) • UNC Mod 430 and iGT Mod 047 were raised to give effect to these data flow requirements • The Smart Energy Code draws together the obligations for these modifications and is referenced in the amendments to the UNC and iGT UNC respectively • It is understood that obligations for Suppliers to submit Smart Metering information are covered in the Smart Energy Code • The provision of Shipper data to the DCC via the Transporters Agent includes Shipper data held by both larger Gas Transporters and independent Gas Transporters as a single file submission to the DCC

5. iGT Customer Data Provision Service • To enable Xoserve to provide a consolidated file of iGT and GT customer data to the DCC, Xoserve requires the iGT customer data. • This transfer of iGTs customer data from the iGT to Xoserve must be via a secure communication mechanism • Current communication mechanism between iGT’s to Xoserve does not meet the performance requirements for the provision of the iGT and GT customer data to the DCC, or the security requirements for the transfer of data • The iGTs are not funded, and could not easily obtain funding, for the communication mechanism • Shippers, as the main beneficiary of the service, agreed to fund the communication mechanism between each iGT and Xoserve • This will last until such times as the iGT Single Service Provision is implemented, intended for 1st October 2015.

6. iGT Customer Data Provision Service iGT UNC Mod 047 Workgroup discussions • Shippers agreed to fund the service and were consulted on various options • Shippers specified their preference for Xoserve’s Information Xchange (IX) communication mechanism • iGT’s then published a decision letter to the industry which indicated their preference for an IX communication mechanism to be implemented between each iGT and Xoserve for the transfer of iGT customer data • To fund the service the Non-Code User Pays contract will be utilised, the service being the “iGT Customer Data Provision Service”.

7. iGT Customer Data Provision Service Funding • Xoserve provided a cost estimate during the development of iGT modification 047. • The service comprises two elements: • The set up of the communications mechanism • The ongoing cost of the communication service

8. iGT Customer Data Provision Service • The cost estimate is as follows:

9. iGT Customer Data Provision Service Non-Code User Pays Service • An existing contract in place with the industry • Services Schedule change process is controlled by User Pays Customers. • Change process has “check points” before proceeding • Charges for User Pays Services are governed under the Agency Charging Statement (ACS) which requires non-discriminatory, cost recovery based services • Two services envisaged: - The set up of the communications mechanism - The ongoing cost of the communication service • Progress reporting will be provided to UPUC on a regular basis

10. iGT Customer Data Provision Service iGT org iGT org iGT org iGT Licence iGT Licence iGT Licence iGT Licence iGT Licence iGT Customer data Xoserve GT data compiler DCC

11. iGT Customer Data Provision Service User Pays Service Schedule matters • Service is iGT Customer Data Provision – set up communication mechanism, ongoing communications • Service request is - Approval of the BER by UPUC. • Service acknowledgement is – Xoserve’s notification of acceptance of approval of the BER. • Service output – confirmation communication set up and provision of ongoing communications. • ACS charging basis is the percentage of supply points across all iGT Networks

12. iGT Customer Data Provision Service Next steps • Submit to UPUC: • Change Order (UPCO008) and Evaluation Quotation Report (EQR) • Draft ACS • Draft Service Schedule • Business Evaluation Report • UPUC to approve EQR and submit Business Evaluation Order • Would like process concluded and service request placed by March 2014 – is this possible?

13. Non-Code User Pays ServicesNew Services ScheduleiGT Customer Data Preparation for Single Service ProvisionChange Order 007

14. iGT Customer Data Preparation for Single Service Provision • Background • iGT Customer Data Preparation Service • User Pays Service • Funding • Timeline

15. iGT Customer Data Preparation for Single Service Provision Background • Xoserve is to provide “Agency Services” on behalf of iGTs in the same way as services are provided for GTs • Xoserve shall hold and maintain the iGT supply points alongside the GT supply points within its systems • Shippers will have a single interface regardless of GT type for standard transaction activities e.g. supply point administration, meter asset and read submission etc • All of the services developed under modification 432 (settlement reform) and 434 (retro updates) will apply to iGT supply points (to the CSEP i.e. for the GT transportation charges services – see slide 27 for further detail)

16. iGT Customer Data Preparation for Single Service Provision …… background • UNC Modification 440 and iGT UNC Modification 039 have been raised to enable the Single Service Provision arrangements. • These modifications are intended to be implemented on 1st October 2015. • To facilitate the Single Service Provision the iGT Customer Data needs to be prepared so that it can work effectively in UK Link systems. • Modification 467 has been raised to obligate iGTs to participate in the iGT Customer Data Preparation Service

17. iGT Customer Data Preparation for Single Service Provision iGT Customer Data Preparation – mapping activities • Each supply meter point needs to be traceable to its CSEP • Where required, each nested CSEP needs to be traceable to its master CSEP • Each CSEP needs to be traceable to its iGT Licence • Each iGT Licence needs to be traceable to its iGT Organisation • This mapping activity needs to be completed (and communicated to the industry) prior to the migration of the data to the target UK Link system

18. iGT Customer Data Preparation for Single Service Provision iGT Customer Data Preparation – data preparation • The iGT supply point data set does not map to the UK Link data set. • Some data is thought to be held in different formats • Some data, whilst working in iGT systems, may not work in the target UK Link system • Some data is not held at all • New data items will be required to be developed

19. iGT Customer Data Preparation for Single Service Provision Example data topics • iGTs do not hold the meter link code (prime, sub or freestanding). The field is required in UK Link. In this case, as prime and sub configurations are not permitted on iGT Networks the default value of “F” will be applied • iGTs do not hold the supply point effective date (date the service was laid). Xoserve need this date, a default value e.g. 1.1.2010, will be used. Any default data and their values will be published • A new data item CSEP Id is required. This needs to be created, and the mapping of MPRN to CSEP, nested CSEP to master CSEP (where required), and CSEP to iGT licence completed • The iGT customer lifecycle data needs to be loaded – iGT organisation, iGT licence, Shipper : iGT licence relationship etc

20. iGT Customer Data Preparation for Single Service Provision iGT Customer Data Provision Service approach • Xoserve will build a database to prepare the iGT Customer Data • The iGTs will provide a full extract of their supply point registers and ongoing updates as required • Xoserve will complete the mapping and data preparation and will maintain this on an ongoing basis • Regular portfolios will be provided to Shippers and iGTs to enable verification of the work undertaken by Xoserve • It is understood that Shippers will need to use this information for the preparation of their own system records

21. iGT Customer Data Preparation for Single Service Provision Funding • Xoserve has provided a high level estimate for the delivery of the Nexus BRDs, which is funded through the GTs • This estimate did not include the iGT Customer Data Preparation activity as it is for iGTs not GTs • At Nexus, Mod 440 and iGT Mod 039 Workgroup meeting Shipper attendees have acknowledged it is appropriate for this service to be funded directly by Shippers who ship on iGT networks. • The most appropriate route for this funding is via the existing contract mechanism of Non-Code User Pays

22. iGT Customer Data Preparation for Single Service Provision • Cost estimate • Originally Xoserve provided broad range of £400,000 - £900,000 • The BRD is largely written so Xoserve has received better quality quotes • System design and build – circa £200,000 - £250,000 • Data preparation support – circa £200,000 - £400,000 • The final costs of the Services will not be known until after the Services have been completed – is this an issue?

23. iGT Customer Data Preparation for Single Service Provision Non-Code User Pays Service • An existing contract in place with the industry • Services Schedule change process is controlled by User Pays Customers. • Change process has “check points” before proceeding • Charges for User Pays Services are governed under the Agency Charging Statement (ACS) which requires non-discriminatory, cost recovery based services • Two services envisaged – database development, data preparation • Progress reporting will be provided to UPUC on a regular basis

24. iGT Customer Data Preparation for Single Service Provision Timeline iGTs Shippers Migrate data data portfolios Build database and interfaces UP change UP Service ends Data preparation System go live 1st Jan 2014 1st Apr 2014 1st Jan 2015 1st Oct 2015

25. iGT Customer Data Preparation for Single Service Provision User Pays Service Schedule matters • Service is iGT Customer Data Preparation – database development and data preparation • Service request is - Approval of the BER by UPUC. • Service acknowledgement is – Xoserve’s notification of acceptance of approval of the BER. • Service output – confirmation of built and loaded database, prepared data ready for migration. • ACS charging basis is the percentage of supply points across all iGT Networks

26. iGT Customer Data Preparation for Single Service Provision Next steps • Submit to UPUC: • Change Order and Evaluation Quotation Report (EQR) • Draft ACS • Draft Service Schedule • Business Evaluation Report • UPUC to approve EQR and submit Business Evaluation Order • Would like process concluded and service request placed by March 2014 – is this possible?

27. iGT Customer Data Preparation for Single Service Provision • Further explanation of slide 15 and the reference to mods 432 and 434 applying to iGT supply points. • Modifications 432 and 434 will apply to the GT network up to the CSEP (the end of the GT network) but not beyond onto the iGT network.

28. iGT Customer Data Preparation for Single Service Provision • To enable Shippers to use the 4 settlement products, the LMN and aggregation processes need to change. • In future each supply meter point and supply point in the CSEP will be recorded individually, and where processes require, aggregation will be completed by Xoserve • To make these arrangements effective new UNC defined terms are required to accurately name the physical and commercial arrangements at the CSEP. • The following slides set out these new arrangements • Note: GT transportation charging principles are not affected by these new naming conventions

29. Independent Gas Transporter System Supply Point (IGTS Supply Point)* and Independent Gas Transporter System Supply Meter Point (IGTS Supply Meter Point)* iGT system CSEP, against which is recorded the CSEP Supply Point* and CSEP Supply Meter Point*. These correspond to the IGTS Supply Point and IGTS Supply Meter Point GT system * New defined terms in UNC GT charges to this point

30. iGT Customer Data Preparation for Single Service Provision Naming conventions • The physical Connect System Exit Point (where the iGT makes a connection to a GT pipe) is still the CSEP • The point of the emergency control valve for a service pipe connection to a property on the iGT System is to be known as an Independent Gas Transporter System Supply Meter Point (IGTS Supply Meter Point)*. • The Independent Transporter System Supply Meter Point is also the Independent Gas Transporter System Supply Point (IGTS Supply Point)* for commercial arrangements. • The CSEP Supply Point* and the Independent Gas Transporter System Supply Point is a one : one relationship. I.e. a CSEP Supply Point corresponds to an Independent Gas Transporter System Supply Point. * New defined terms in UNC

31. iGT Customer Data Preparation for Single Service Provision Naming conventions • The CSEP Supply Meter Point* and Independent Gas Transporter System Supply Meter Point is a one : one relationship. I.e. each Independent Gas Transporter System Supply Meter Point corresponds to a CSEP Supply Meter Point recorded at the CSEP. The CSEP Supply Meter Point will not be a physical item it is a notional value against which GT services are provided. • GT arrangements e.g. transportation charging etc are made up to the CSEP Supply Meter Point (at the CSEP) and not beyond. • The Shipper will nominate the Class (product 1,2,3 or 4) for each individual CSEP Supply Point. This will be will be done by the Shipper nominating the Independent Gas Transporter System Supply Point with the relevant Class code. This then sets the arrangements for the GT transportation for the CSEP Supply Point. * New defined term in UNC

32. Independent Gas Transporter System Supply Point (MPRN 7412345678) nominated as Product 2 iGT system CSEP, against which is recorded the CSEP Supply Point and CSEP Supply Meter Point. These correspond to the IGTS Supply Point and IGTS Supply Meter Point GT system Shipper makes gas nominations daily to this point (here) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT charges Energy is allocated to this point (here) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT charges Energy is reconciled to this point (here) for the Independent Gas Transporter System Supply Point e.g. MPRN 7412345678, for GT charges