Performance Assurance 21st MayIncentives

USRV’s – Incentive Regime

• Charges are based on a range of standards

• USRV Period runs from 21st of one month to the 20th of the following month

• Charges are based on number of outstanding contacts at a certain status and length of time outstanding at that status

• Extra time is given when a shipper receives more than 150% of their average, compared to the previous 6 months and the increase is greater than 20 USRV’s

• Items that fail the 95% standard are charged at £20 each

• Items that fail the 100% standard are charged at £30 each

USRV’s – Incentive Regime

• Incentive charges continue until USRV is 30 months old when Xoserve take responsibility for resolution as a User Pays service

• Incentive charges are invoiced monthly via the Sharing and Incentive invoices

• The invoice must be paid in full by the invoice payment due date.

• Queries with the invoice should be raised as an INV contact via CMS

• Regime will cease as the Industry requirements as set out within Modifications 432 and 434 are implemented

Neutrality

• The Community is financially responsible for the Balancing of the System

• Incentives are in place to ensure Entry and Exit scheduling quantities balance

• Any profit or loss resulting from the Energy Incentive regime is smeared back to the Shipping Community via the Neutrality Mechanism.

• The Mechanism requires a bank account and sales ledger, these have to be registered in a Company Name

• Xoserve manage the Neutrality Principles on behalf of National Grid Transmission and the Community

• Neutrality is invoiced monthly as part of the Energy Balancing Invoice

Neutrality

• The Energy Balancing Invoice must be paid in full by the Invoice payment due date, no monies can be witheld.

• Queries against this invoice should be raised as an INV contact via CMS or via the Credit and Invoicing Team.

• Failure to pay the invoice would result in recovery of the charges from the Industry as the bank account has to remain balanced at all times.

MOD 640

• Relates to AQ reconciliation of threshold crossers moving from SSP to LSP

• Once a year reconciliation following the yearly AQ review• Invoice is issued in March for the previous years review• Back up issued during the New Year• The invoice must be paid in full by the invoice payment due date• Queries against this invoice should be raised as an INV contact via

CMS or directly through the appropriate Xoserve team• Regime will cease as the Industry requirements as set out within

Modifications 432 & 434 are implemented