Enduring Solution ESS 2 Stage 2 Enduring Solution

Enduring Solution ES-S 2 Stage 2 Enduring Solution – Stage 2 (ES-S 2) Harmonisation Working Group Meeting 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Context – Enduring Solution Project T ESB implemented market facing systems in December 2004 T NIE implemented interim solution in November 2007 T Enduring Solution project in NI to deliver fully dynamic retail market Initial plan was to progress 11 new messages already in place in Ro. I Y Recent focus is on much greater alignment Y T 2 Harmonisation project launched to bring forward harmonisation arrangements to be included within the Enduring Solution Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 What is Harmonisation? T Harmonisation considered in context of: Alignment with other jurisdictions Y Focus on market operations from perspective of suppliers Y T Initially wide scope, now focused on alignment with Ro. I T Harmonisation – the objective in broad terms: Common set of messages Y Market procedures to describe consistent set of rules for supplier facing process interactions Y Integrated governance mechanism Y 3 Private and Confidential HWG 1 To the extent that can be implemented with an acceptable impact on overall enduring solution timetable and cost In place from start, to get to best short term position within ES, and then remains to ensure further convergence 6 October 2009

Enduring Solution ES-S 2 Stage 2 Governance T T Governance through: Y Harmonisation Steering Group, to provide overall direction Y Harmonisation Working Group, to go through detailed proposals within brief defined by Steering Group, and to report any unresolved issues to it Aligned governance from end 2009 also required to ensure: Alignment arising from project does not drift due to incremental decisions taken separately in each jurisdiction Y Further convergence around areas not fully aligned within ES Y T Principles of that governance likely to include Common set of principles applying to further development Y Single change control process, possibly working in parallel in separate jurisdictions Y 4 Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Harmonisation Options T ESSG and MOSSG considered five options for alignment Y Three aimed at full harmonisation, to Ro. I, to NI or through fresh start One was aligning schema only, not processes Y One was deferment Y T Alignment will be on market messages and supplier facing processes that support them, to extent practical T General consensus on aligning to Ro. I Issue for incumbent suppliers, no advantage to them in change Y Agreement that some issues will prove intractable in timeframes available Y 5 Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Aspiration and Approach T A joint project has been established between NIE and ESB T Aspiration - harmonisation bringing real benefits to suppliers Y T Principal scope is market messages and associated processes Y T 6 developed for inclusion in core ES project contract alignment of technical solutions will also be considered Overall approach Y Recognise existing differences between jurisdictions Y Consider options for alignment on a case by case basis Y Engage with appropriate stakeholders Y Develop pragmatic outcomes – which are cost effective and efficient Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Process considerations No End Supplier Facing? Yes Pre-agreed Excluded? Potential HWG Consideration No End Consider Acceptable Impact Assessment Harmonise Exclude Not acceptable End HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Examples of suggested pre-agreed exclusions from harmonisation within current project Area NI Ro. I DUo. S Tariff and Transaction Charges Metering Threshholds Interval Metering Meter Configurations Prepayment Meters Different rules and tariff structures 70 k. VA 50 k. VA/100 k. VA Half Hourly Quarter Hourly Different meter types and timeband configurations; removal of STo. D (MD) metering in Northern Ireland Keypad, customer choice, in Token, financial hardship, competitive market not in competitive market Meter Read Cycles Three months Supplier of Last Resort (except messaging) Processes driven by differences in regulatory considerations and requirements 8 Private and Confidential HWG 1 Two months 6 October 2009

Enduring Solution ES-S 2 Stage 2 Areas where inclusion in harmonisation is to be reviewed Area NI Ro. I New Connections No energisation without registration Energisation possible without registration Fieldwork Appointments Schedule appointment Request appointment Data Publication Debt Management Cooling off Period Estimation at Co. S Supplier requested deenergisation Different data protection regimes and views on disclosure of data Processes for objection, transfer and customer Excluded from MPD tracking Required for domestic Not required Only permitted in exceptional circumstances Prohibitions in domestic market Generally allowed except in certain circumstances Generally allowed Other areas may be identified as analysis proceeds 9 Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Examples of supplier facing processes Area Is it supplier facing Messaging New connection Connection T&Cs MIC; MEC Registration Yes if to/from a Supplier No; between network provider and customer Yes, including registration of a new connection Customer data provision 10 Private and Confidential No HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Joint Arrangements with NIE and ESB T T T 11 Overall plan is to work in a cyclical manner through messages Y Clustered in six groups Y Three key steps – schema analysis, business process analysis, industry engagement Working together on schema and process alignment Y Approximate three month timeline Y Networks teams established and actively engaged Proposals will be discussed at harmonisation working group Y Stakeholder engagement at critical points Y Detailed plans being developed Y Need for commitment from all involved parties to work within an acceptable impact on enduring solution procurement timetable Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Working Approach T 12 Approach will be similar to that used in ESSG and then SIG to develop previous set of changes Y Present topic at first meeting, discuss, identify issues for further review Y Further comments made within agreed number of working days after first meeting Y Second meeting reviews issues and further comments, agreement sought on way forward Present & Discuss Close Registration HWG 2 HWG 3 2 Objection, Cancellation, De-Registration HWG 2 HWG 3 3 Fieldwork Requests and Responses HWG 3 HWG 4 4 Customer Details and Meter Point Characteristics HWG 4 HWG 5 5 Meter Reading and Meter Read Withdrawal HWG 5 HWG 6 6 Data Aggregation, Unmetered Supplies HWG 5 HWG 6 Gp Topics 1 Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Provisional HWG Schedule HWG Date 1 Today 2 3 20 Oct 2 Nov Present & Discuss GP Topic Close GP Topic Plan, Approach 1 Registration 2 Objection, Cancellation, De. Registration 3 Fieldwork Requests and Responses 4 Customer Details and Meter Point Characteristics 5 Meter Reading and Meter Read Withdrawal 6 Data Aggregation, Unmetered Supplies Contingency meeting 4 16 Nov 4 Customer Details and Meter Point Characteristics Contingency meeting 5 5 1 Dec 6 6 13 Meter Reading and Meter Read Withdrawal Data Aggregation, Unmetered Supplies 14 Dec Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Process NIE/ESB presentation to HWG Harmonisation Provision of schema proposals (excel) Proposals Summary of process and schema changes (powerpoint) To HWG Materials to be provided via RMDS web-site no later than working day prior to HWG Supplier Review Comments 5 WD after HWG At next HWG Discussion of Review Comments Documentation Of Agreements HWG 1 Following agreement at HWG • Message guide (word) • Summary of process changes and rationale (word) 6 October 2009

Enduring Solution ES-S 2 Stage 2 Schema proposals T Excel spreadsheets T Describes common schema and changes in each jurisdiction HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Sample schema proposal HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Proposed Timeline HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Working Arrangements T Message by message analysis, within group structure and overall approach to align on Ro. I T For each message, presentation to HWG will: State whether message will be changed (existing) or adopted (new to NI) Y State circumstances in which message used (e, g, by an extract from present MPs) Y Present proposals for message alignment, potential to involve changes in both jurisdictions Y Present proposals for process alignment, potential to involve changes in both jurisdictions Y Present list of areas where alignment not achieved and state reasons Y 18 Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Outputs T From harmonisation analysis (now to December 2009) Y Message guides describing: v Message content and structure v Networks message validations (may vary by jurisdiction) Documentation to support agreed changes to market procedures Y Rationale for any items excluded from harmonisation Y Within NI only, documentation to support instructions to SIG to develop Operational Framework consistent with HWG outputs Y T 19 Later in harmonisation (& NIE Enduring Solution) Detailed Design Y Common set of message schema Y Updated market procedures to describe agreed rules for supplier interactions Private and Confidential HWG 1 6 October 2009

Enduring Solution ES-S 2 Stage 2 Technical Infrastructure T Options for alignment to be identified T Interaction with harmonisation options to be progressed T Initial outcomes to be presented to later HWG, date to be determined 20 Private and Confidential HWG 1 6 October 2009