ESB Networks AIP Programme High Level Design Introduction

ESB Networks AIP Programme High Level Design Introduction and Overview of Current Status

Networks AIP Programme : Agenda Design Objective & Timelines Current Status and Plan for next 6 weeks Understanding of High Level Impacts 1

Networks AIP Programme : Design Objective & Timelines Design Objective To Deliver changes to Retail Market Design , Processes and Systems necessary to support the workings of the AIP, and be Operationally ready , in time for commencement of Market Trial Timelines 3 month Market Trial will commence on April 1 st, 2007 - Meter Data Providers must participate in the trial, fulfilling their SEM function and delivering meter data “as live”. The All Island single energy market (SEM) is to be operational for the 1 st July 2007 2

Networks AIP Programme : Design Approach & status To understand requirements • What is Changing • What is New Where we are now Design Impacts • To assess the impact of the requirements Design Options • To identify where there are options • To assess options • To document proposals • To discuss and agree design options 3

Networks AIP Programme : Key Milestones • Pending a more complete understanding of the requirements for AIP, no specific proposals are being tabled today • Thursday 1 st June - Detailed Discussion Document containing a draft specification of changes and setting out in full the impacts, as far as can be determined. This to issue from ESB Networks AIP Programme to Market Participants , 2 weeks from today • Thursday 8 th June - One week later, Interim Special IGG meeting to be convened to walk-through in detail the proposed changes • Thursday 22 nd June – two weeks later, final walk-through of impacts and review of any issues raised at previous meeting. Consider at IGG if special TAG meeting is required. Following this IGG, MCRs to be raised by ESB Networks AIP Programme and will be progressed through the Retail Market Change Control Process and any issues relevant to CER/SMO with SIMDRACS • Comment that Change Control Process may need to be fast-tracked • Baseline Design following approval of MCRs • Changes to Baseline to be progressed through the Change Control Process 4

Networks AIP Programme : Status Current High Level Understanding of Impacts on Retail Market is based on • SEM documentation • Design Discussion slides and documentation from SIMDRACS Project Co-ordinator • Trading and Settlement Code Potential Changes to Design Understanding may arise through • CER Consultations on Key changes that impact Retail Market Participants • Potential changes from SEM • final ‘non-SMO’ design decisions eg potentially arising from CER review of Global Aggregation NB - Current Understanding outlined today is Not Baselined 5

Networks AIP Programme : High Level Impact Assessment Key Areas impacted are • Data Aggregation • QH Data Collection / Data Processing • Retail Market Message Catalogue and XML schema • comment that need to confirm there are no changes to the data definitions in the existing Retail Market Catalogue 6

Networks AIP Programme – High Level Impact Assessment The following have been identified as high impact items 1. New Aggregation timetable and the introduction of a new aggregation process for Indicative Aggregation - see next slides 2. Out-of-Settlement Aggregation and Netting - requirement for Out-of Settlement Generator data potentially to be netted from Supplier Demand in Data Aggregation - Simdracs requirement for Suppliers to receive automated messages for Generators with MEC > 100 k. W and not participating - Treatment of Exceptions to the Rules, tbc 7

Networks AIP Programme – High Level Impact Assessment New Aggregation timetable § Move of Initial Aggregation from D+10 to D+4 § Re-Aggregation to be for a day rather than spanning 13 months § Move of Re-Aggregation from monthly to daily at Month 4 and Month 13 § New aggregation process for Indicative Aggregation and the provision of data for D+1 § All aggregated data to be provided to SMO by 1400 hrs § Indicative, Initial and Re-Aggregation from MRSO to be provided on working days and specifically not calendar days • This means data for Indicative for Friday, Saturday & Sunday will be sent by MRSO to SMO in separate files on a Monday by 1400 hrs 8

Networks AIP Programme – High Level Impact Assessment New Aggregation timetable, contd Example 1 Daily Scenario Consider that there is a resettlement at 4 and 13 months respectively. In order to settle a date a MDP is required to issue a daily file in line with the intervals described in the example below: Date to be settled: q Indicative Settlement sent to SMO q Initial Settlement data file to SMO q 1 st re- settlement data file to SMO q 2 nd re-settlement data file to SMO 1 st July 2007 2 nd July 2007. 5 th July 2007 1 st November 2007 1 st August 2008 D+1 D+4 M+13 Example 2 Daily Scenario This daily submittal of files can be viewed from a different perspective. When the SEM has been operational for long enough the SMO will expect 4 daily demand files from each MPD every business day. Indeed allowing for weekends and public holidays this requirement might increase to 3 or 4 days of daily demand data for 4 different stages of settlement. For example on the calendar date of 4 th August 2008 the SMO will receive from each of the MDPs § § Indicative Settlement Initial Settlement 1 st re-settlement 2 nd re-settlement 3 rd August 2008 31 st July 2008 4 th April 2008 4 th July 2007 9 4 th August 4 th Aug 08 = D+1 for 3 rd August = D+4 for 31 st July = M+4 for 4 th April = M+13 for 4 th July 07 [extract from SMO HL Metering Specification for the SMO]

Networks AIP Programme – High Level Impact Assessment: Other Impact areas are: § Data for SEM systems require NQH and QH sites to be aggregated together rather than separately § Change in re-aggregation approach from calculating differences to re-performing initial aggregation § Interval period in which aggregated data is to be provided to Settlement is to move to Half-hourly from Quarter Hourly § All Aggregated data for SEM systems to be provided in MWhs and specifically not k. Whs § The SEM systems are expecting one file from each Metered Data Provider. § New query and dispute processes for participants in the market, potentially requiring the ability of MRSO to re-run aggregation routine multiple times for any selected day and producing data for SEM systems § Generators may nominate agents to operate on their behalf in the SEM market who may require data § SEM requirements for treatment of Long and Short Day § SSAC - understand that meaning is changing - need to understand if any impact § Metering items with ESBNG § ESB PES data may potentially be aggregated in addition to other Supplier data § IT Infrastructure to support Data Transfer mechanism from MRSO to SMO § Transitional Items q q Cutover Plans - Later etc 10

Networks AIP Programme – High Level Impact Assessment Summary • Still at the stage of Understanding Requirements and High Level Impact Assessment • Thursday 1 st June Draft specification of Changes to issue • Thursday 8 th June Interim Special IGG to walk- through proposed changes • Thursday 22 nd June IGG to finally discuss and agree that MCRs would be raised 11