NEDs / VnBDs

1. NEDs / VnBDs Distribution Workgroup 24/11/16

2. Agenda • Background • Proposal for 7 NEDs / 2 VnBDs – 1st June 2017 Implementation • Definition of NEDs / VnBDs • Treatment of minimum Objection Period • Progress against modification timeline • iGT data load considerations • Matters arising in TPG • Presentation to TPG (attached in full FYI) • Report back from October DW

3. Background

4. Background& • Non effective days (NED) are defined in each instance that they are required • There is no standard definition in UNC of a NED • Typically the definition of a NED would consider: • Provision of Code Communications • Whether updates to the UK Link System would be undertaken • Specifically definition of Confirmations and DM readings • Liabilities • Whether NEDs would count as Business Days • 0532 requested 7 NEDs 24th – 30th September 2016 • 1st October 2016 is Saturday – therefore 1st & 2nd were non Business Days • Provisional plan to recover system to BAU by 3rd October 2016* • * This was subject to detailed transition planning and PT, etc.

5. 1st June 2017 PNID – NED/VNBD Mod& • 1st June 2017 is a Thursday • Plan remains to have seven NEDs prior to PNID (25th – 31st May 2017) • It is assumed that plan supports this approach and this position is supported through TPG • Recovery to BAU position • System checks and hyper care • Catch up necessary for 4 Supply Point System Business Days (SPSBD) • The 2 days from PNID i.e. 1st June, and 2nd June 2017 are defined as a [‘Variant non Business Day’ (VNDBs)] in order to bring UK Link back in a controlled manner • VNBDs defined to avoid confusion with having two types of NEDs defined in one modification

6. 1st June 2017 PNID – NED Mod& • Taking 1st and 2nd June 2017 as VNBDs • Means that the industry have certainty on processing timescales • Reduces the risk of inappropriate time based rejections • Does reduce the objection window to less than 2 days for 7 effective days – see timeline example!: • Extension to minimum Confirmation timescales for Confirmations effective 2nd June – 8th June 2016!!!! • Can this be accommodated ‘voluntarily’ without the need for inclusion within the modification?!! • Views from 27th October 2016 Distribution Workgroup: • ! Minimum objection window should be at least 1 day • !! No. This should be included in the modification legal text • !!!! – See following section – range amended for 5th – 7th June 2017

7. 25th – 31st May 2017 – NED& • Definition of NEDs in this instance: • Provision of Code Communications S • Whether updates to the UK Link System would be undertaken S • Specifically definition of • Confirmations may become effective P • DM readings P • Liabilities S • Whether days would count as Business Days S

8. 1st and 2nd June 2017 – VNBD& • Definition of VNBDs [in this instance]: • Provision of Code Communications P • Whether updates to the UK Link System would be undertaken P • Specifically definition of • Confirmations may become effective P • DM readings P • Liabilities S • Whether days would count as Business Days S

9. Contingency Date& • Within the UK Link Programme a contingency date of 1st July 2017 is recognised. • This does not form part of the solution of this modification. • Recognising the request from UKLC (and TPG) to include this in the modification, the following would apply were the PNID contingency dates to be utilised. • 1st July 2017 is a Saturday. • We would take 7 NEDs in advance of PNID. 24th to 30th June 2017. • We do not foresee the need for further ‘special days’ i.e. NEDs or VNBDs • We would expect minimum Confirmation timescales could be supported for the equivalent period PNID+1 to +7. • A timeline is provided to Users for information only.

10. Recommended Option Summary& • The Mod Solution proposes that: • Define 24th May – 31st May 2017 as NEDs • Define 1st and 2nd June 2017 as VNBDs • + Provides early definition to Users and Xoserve • + Provides up until Monday 5th June to get to BAU for Xoserve and industry • + Consideration of minimum Confirmation window to be extended • Development workgroup to assess: • Extension of Minimum Confirmation Timescale for 2nd – 8th June 2017!!!! • !!!! – See following section – range amended for 5th – 7th June 2017

11. Treatment of Minimum 1 Day Objection Period / Minimum Confirmation Period

12. 1 Day Objn Period – Options Considered • The Distribution Workgroup on 27th October 2016: • Indicated that Xoserve needed to define a solution with a minimum of one Objection day • Options considered: • Extend minimum Confirmation lead time for Confirmation Effective Dates 5th – 7th June 2017 (Proposed) • Single Variant non Business Day - 1st June 2017 • Not recommended as IDR1 timings indicate that catch up activities will run into 2nd June.

13. 1 Day Objn Period - Extend Min Confn Timings • Single objection day reduces the impacted Confirmation Effective Date period from 2nd – 8th June 2017 (when 2 objection days were assumed) to 5th – 7th June 2017. • Modification amended to reflect the above: • Minimum 1 day may include notification following first run of batch on Monday 22nd May 2017 where Confirmation received on 20th and 21st May. • Objection must be received by final processing on 22nd May 2017 • Amendment to Legacy UK Link parameterised value 20th May – does not require reverting in Legacy

14. Progress against Modification Timeline

15. Development of Modification • It was proposed that this will be developed in a single Workgroup following Panel (24th November 2016) • Equivalent iGT Modification (092) has been raised - 7 NEDs (and 2 VnBDs) • IDR1 timings experienced iGT data migration over running • Risk has previously been raised regarding performance • Lessons learnt have been conducted, and enhancements will be tested in specific planned iGT data cycles in December • Recommend that modification awaits outcome of December test (due to conclude w/c 5th December) – will miss December panel • Further testing planned in January • IDR2 is planned in March – next test on Production environment • If timings cannot be recovered – might require additional iGT NED(s) • Views • Mod timings – support additional period • Approach re GT / iGT mod parity?

16. Matters arising in TPG

17. Matters arising in TPG • Useful discussion on the definition of NEDs and VnBDs • Testing of NBDs in calendar • Re: Changes to Legacy Systems for Minimum Confn window • Questions around the low level transitional plan • Some are not relevant to the modification development – e.g. how catch up will progress • Some are relevant to the modification • When will Users be able to start to send files through. Current modification indicates not until PNID. • Discussion regarding the potential extension of NEDs • Keep parity between iGT and GT timescales – agreed • Discussion around extending timescales now (pre: December test) – checkpoint in December

18. Questions?