Project Nexus Workgroup

1. Project Nexus Workgroup 9th September 2014

2. Background • During detailed design a number of areas have been identified that require clarification with either UNC or current processes due to the impacts new requirements have on the processes • The areas identified are • Supply Point Category definitions in UNC • Primes and Subs • Supply Points that have been Confirmed in error (Mod 517) • Address updates • AQ Correction • Read replacement • Fixed AQ & SOQ

3. Supply Point Category • Supply Point Category is used for Gas Nomination & Allocation processes in Gemini • UNC Section A4.4 states: • DM Supply Point whose AQ is greater than 58,600,000 kwh will be classified as DMC – Gas Nominations at Supply Point level • DM Supply Point whose AQ is not greater than 58,600,000 kwh will be classified as DMA – Gas Nominations aggregated for DM Supply Points at Shipper & LDZ level • DM Supply Point whose AQ is greater than 1,465,000,000 kWh will be classified as VLDMC – Gas Nominations at Supply Point level • NDM Supply Points will be classified as NDMA – aggregate of NDM Supply Meter Points for a Shipper & LDZ • Energy Balancing Scheduling charges differ for VLDMC, DMC & DMA.

4. Supply Point Category cont. • Class 1 & 2 will be either DMA, DMC or VLDMC depending on AQ • Class 3 & 4 will be NDMA • Currently the Supply Point Category (SPC) does not change as a result of the annual AQ review • Based on UNC it should • Following implementation of rolling AQ the SPC could potentially change monthly • This will affect the way Shippers submit their gas nominations & view gas nominations & allocations

5. Supply Point Category Proposals • Proposal • Supply Meter Point with AQ greater than 1,465,000,000 kWh is VLDMC (no change) • All Class 1 Supply Meter Points have a SPC of DMC • All Class 2 Supply Meter Points have a SPC of DMA • All Class 3 & 4 are classed as NDMA (no change) • Where the Supply Meter Point changes Class, the SPC will be changed and the Shipper advised • If agreed this will require a change to UNC

6. Prime and Sub sites • A Shipper is able to nominate any Prime or Sub Supply Meter Point that is not DM Mandatory to Class 2, 3 or 4 • Shippers will have the obligation to submit reads based on the election of Class (daily reads for Class 2, daily reads in batches for Class 3 & periodically for Class 4). • Xoserve, on behalf of the GT, will only request a read for Reconciliation purposes (in order to net off the Prime or Sub meter) and perform reconciliation on the Sub. • The request will be triggered based on the lowest denominator meter read frequency of any of the meter points within the P&S configuration in Class 4

7. Prime & Sub Reads Matrix for Reconciliation • Reconciliation only required where daily reads are not received - where the Prime or Sub is a Class 4 Supply Meter Point only

8. Prime and Sub sites cont. • Shipper will be responsible for carrying out Check Reads for Supply Meter Points in Class 2, 3 & 4 & notifying Xoserve of the info & re-synch where applicable (if AMR is fitted). • This obligation will not default to the GT • The Shipper will be responsible for submitting the transfer read, where not submitted an estimate will be loaded • Must Reads are applicable to P&S

9. Confirmed in Error (Mod 517) • Current process; • Shipper submits a query via CMS (ECO) along with ‘Warrant’ • Where valid and accepted the Shipper is notified and requested to submit an Isolation & Withdrawal • A dummy meter is recorded by Xoserve to enable the Shipper to isolate & withdraw (current system constraint) • Any financial adjustments are processed once the I&W is recorded • Proposal; • Shipper submits a Withdrawal (no requirement to attach asset record) • The financial adjustment is processed once the Withdrawal is confirmed and effective

10. Address Updates • If an address update is submitted that amends the LDZ and or Exit Zone this will be effective 2 days from receipt without the need for the shipper to re-confirm • Where there is a change in the LDZ and potentially a change in the rates applied for transportation charges an updated Offer must be submitted (UNC section G2.4) • So, where there is an address update which changes the LDZ or Exit Zone an updated Supply Point Offer will be issued to the Shipper

11. AQ Correction • The AQ Correction process was designed around the existing process for a Shipper to update an AQ (BTU) • Recognised that a process will still be required for exceptional circumstances to change the AQ • New business activity (G1.6.21c) • Theft of Gas (G1.6.21a) • Read fails the Outer Tolerance (‘Market Breaker’) (G1.6.22) • Material change in consumer plant (G1.6.21b) • Currently for a new business activity the Shipper must submit the request 23 business days from Registration • Proposal that a limit for a new business activity request to continue • If agreed needs to go into UNC

12. Read Replacement • Proposal agreed to allow updates to Supply Point and meter information for an effective date pre Go Live • Proposal to also allow replacement of meter reads submitted pre Go Live • Negates the need and complexities around submission of consumption adjustments during the cutover period • Same rules would apply as defined by Mod 0434 • Reads are validated against the tolerances • Only the Shipper who submitted the read can replace it • Can only replace an existing read, no in-fill reads, unless submitted with an asset update • Read must be higher than previous actual read and lower than subsequent actual read

13. Fixed AQ & SOQ • For Class 3 and 4 Supply Meter Points there will be two AQ’s & SOQs; • Rolling AQ for allocation purposes • Fixed AQ & SOQ for transportation charges • The fixed AQ & SOQ will be the value set on 1st December each year and will go live for transportation charges in the following April • On implementation date the AQ & SOQ used for transportation charges will be the value set on 1st October 2015 • On 1st December 2015 the AQ & SOQ will be set and effective for 1st April 2015 transportation charges