CSEP NExAUpdate

Marie Clark

ScottishPower

28th September 2006

Current Situation – Annex A Modifications

iGT Network Codes FMRs produced – overwhelming Shipper support Only one iGT has provided legal text Follow-up communication sent to remaining iGTs requesting suitable legal

text - limited response iGT UNC – iGT request for suspension of “live” Modifications Ofgem confirmation that Modifications should proceed UNC Modifications Mod 83 implementation effective from 1/10/06CSEP NExA Approach made by National Grid on behalf of DN Owners to obtain

agreement from iGTs to remove Annex A obligations Revised AQ Table not yet implemented (Mod 75)

Further Modifications

Live Modifications – iGT Network Codes Obligation to provide complete, timely and accurate data updates to

Large Transporters where Nested CSEPs exist – Issued 22/9/06

Draft Modifications – iGT Network Codes Insert Obligation for iGTs to publish and maintain a coordinated

register of pipes LMN AQ Updates - Rejection Resolution LMN AQ Updates - Reporting Requirements

Future Modifications – UNC Introduce Standard of Service for Resolution of iGT LMN AQ

Update Rejections

UNC Modification - Introduce Standard of Service for Resolution of iGT LMN AQ Update Rejections

Current Situation NExA does not include any obligations or incentives in relation to

data submission or rejection resolution xoserve rejection analysis demonstrates large scale issues with

quality and accuracy of iGT updates i.e

Aug 06 records submitted - 16687

Accepted – 9402 Rejected - 7285 No incentives to resolve rejections within reasonable timescales

Impact

Misallocation of gas and transportation charges across

market participants