Mod 334 - for Discussion on Mod 334 - for Discussion on 77thth January 2011 January 2011

Draft Outline of Potential Refinements to Draft Outline of Potential Refinements to the User Pays Modification Processthe User Pays Modification Process

Action RG0334 007Action RG0334 007

Based on discussions at 334 work stream on 15Based on discussions at 334 work stream on 15thth December 2010December 2010

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Key Points Raised at 334 on 15th Dec 2010

Proposer engages with xoserve ahead of any Mod being raised to share proposal and discuss options – establish what problem we are trying to resolve

Early view on scale of costs and potential delivery timescale Aim is to give an early high level assessment to customers so they can assess

whether to carry on with the proposal or not Standard set of questions to be addressed early on

Give an early indication of what, if any, the potential constraints on the proposal may be

Consider alternative and make all customers aware xoserve to flag up if alternative approaches exist Discussions between proposer and/or any customers outside of meetings

regarding alternatives to be shared with all customers Customers to have a view of overall industry change programme for

centralised systems so Mods can be prioritised At the ROM stage an overview of the system/process impacts of the

proposed change would be useful – schematic view preferred

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Potential Improvements to the User Pays Modification Process

1. Proposer to talk to xoserve ahead of the Mod being raised. Standard set of questions worked through with proposer

2. Mod raised with consideration of centralised systems

3. Mod review by Panel and assigned

4. xoserve provides High Level Cost and Timescale Assessment Matrix*. Matrix reviewed at appropriate forum. Forum (work stream or UNCC) considers Mod’s priority against all Mod activity on central systems

5. Customers (Shippers and GTs) work up proposal and business rules with xoserve. Understanding of customer demand for service established

*Could be done at stage 1

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Dovetailing into the Current Process

6. A ROM can be requested and/or DCA commissioned following stage 5. An industry steer will be sort on how best to progress after customers have had the opportunity to review/discuss ROM/DCA.

7. If Mod proceeds it goes to Panel for final approval

8. Mod and ACS then go to Ofgem

9. Once approved by Ofgem system project work can commence

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High Level Cost and Timescale Assessment Matrix

The matrix represents a very high level assessment It will come out before the service is fully defined No analysis or investigation work will have been undertaken – it is a

‘finger in the air’ assessment based on xoserve’s experience It is designed to give the proposer and other customers a view from which

they can decide early on in the Mod process whether to proceed (or not) based on potential costs and timescale vs. their internal business case

12 mths plus

Six to 12 mths

Less than 6 mths

Less than £100k

£101k to £500k

£501k to £1m £1m plus

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Cost estimate

Estimate Matrix