* Shipper Licence must be granted before a user can go live * * A copy of the Uniform Network

1. Next Page User Admission Steps • * Shipper Licence must be granted before a user can go live • * * A copy of the Uniform Network • Code can be obtained from • http://www.gasgovernance.co.uk/UNC • * * * A Legal Opinion is required for all companies registered outside of England and Wales Go Live System Accounts, XP1 & GeminiE-Training Legal Opinion Obtain copy of Uniform Network Code Accession Agreement IXN Equipment Credit Limit Confidentiality Agreement & IXN Agreement Customer Application Form and User Admission Fee Apply for a Shipper Licence* Version 5 Apr 2012

2. Previous Page Next Page ShipperLicences • Before an Applicant User can become a Shipper it must be granted a Gas Shipper licence from Ofgem the industry regulator. Licence applications should be made directly to Ofgem. Xoserve will check that the Applicant User has a valid Shipper Licence prior to creating the Shipper account. • In limited circumstances an Applicant User may not be required to hold a Gas Shipper licence – please refer to Uniform Network Code Section U.2.5 -Restricted User. • Ofgem Licensing Team 9 Millbank, London, SW1P 3GE Telephone: +0044 (0)207 901 7000 Email: licensing@ofgem.gov.uk Website: www.ofgem.gov.uk Version 5 Apr 2012

3. Previous Page Next Page Customer Application Form & User Admission Fee • Each Transporter requires the Applicant User to complete and submit a Customer Application Form providing details about the company, its background, key contacts and its business intentions. For ease, the Transporters have agreed to use one combined form for the application submission. • Upon receipt, the completed Customer Application Form is distributed to representatives within Xoserve and the relevant Transporters. • A copy of the application form is available on www.xoserve.com/clc.asp • A fee of £5,200+VAT must be paid into Xoserve’s bank account (details on application form) for the administration associated with the User Admission process. The User Admission process cannot commence until the User Admission fee has been received in full. Return to main page Version 5 Apr 2012

4. Previous Page Next Page Confidentiality Agreement & IXN Agreement • The User Admission process involves the discussion of information of a business sensitive nature. A Confidentiality Agreement is completed by the applicant and the Transporters as one of the initial steps of the User Admission process. • Access to the Information eXchange Network (IXN) is a requirement under network code. Before any equipment can be provided, an IXN Agreement is completed to cover any liabilities should the applicant fail to complete the process. Return to main page Version 5 Apr 2012

5. Previous Page Next Page Credit Limits and Security • The Uniform Network Code requires that each Transporter will determine and assign the Applicant User a Code Credit limit. The rules governing the Code Credit Limit are stated within the UNC section V3. • The Code Credit Limits are dependent upon the Applicant User’s operating intentions. If an Applicant User’s operational intentions change then the Transporter should be contacted as soon as possible to establish Code Credit Limits. Return to main page Version 5 Apr 2012

6. Previous Page Next Page Credit Limits and Security- Cont • Section V3 sets out: • the principles on which the Transporter will assess the credit rating of the Applicant User and establish Code Credit Limits, • the basis on which an Applicant User may provide security for the relevant code indebtedness or make repayments to the Transporter, • procedures by which an Applicant User may discuss its Code Credit Limit with the Transporter(s). • All Credit arrangements are made between the Applicant User and each Transporter’s Credit and Risk Department. Return to main page Version 5 Apr 2012

7. Previous Page Next Page Credit Limits and Security- Cont • It is also necessary for the Applicant User to be assigned a Secured Credit Limit in relation to Energy Balancing activities. This arrangement is managed by Xoserve on behalf of the industry. Energy Balancing Credit Rules & section X of the Uniform Network Code define the Energy Balancing process. • The provision of security is a critical part of the User Admission process and must be completed before the applicant’s Shipper accounts are created. Return to main page Version 5 Apr 2012

8. Previous Page Next Page Information Xchange Network (IXN) • To access the UK Link systems, all Users are required to be connected to the communication infrastructure known as the Information Xchange Network (IXN). This allows all transporters and Users to communicate with each other securely. • The IXN equipment must be installed at an address within mainland Britain. Our service provider will arrange for a site visit to take place in order to determine the specific requirements of the User. • Once the site visit is complete, our service provider will order the necessary hardware which normally comprises of Telecommunication lines, a router (NAP equipment), and a file server (gateway). A housing rack can also be provided if required. • Please note that there will be a single charge for the installation, configuration and rental of the equipment. This will be invoiced once the User Admission process is completed. • The IXN equipment is owned by the Transporters and leased to User. Return to main page Version 5 Apr 2012

9. Previous Page Next Page Acceding to Uniform Network Code • To accede to Uniform Network Code the Applicant User will be required to sign an Accession Agreement with each relevant Transporter. The signing of the Accession Agreement will bind the Applicant User and Transporter[s] to the terms of the Uniform Network Code. • It is standard practice to issue a draft (email) copy of the agreement for review before the final (paper) engrossed version is issued for signature. • Signed agreements should be returned to Xoserve who will arrange for the documents to be counter-signed by the relevant Transporter(s) before returning an executed copy to the Applicant User. Return to main page Version 5 Apr 2012

10. Previous Page Next Page Obtaining a copy of the Uniform Network Code and associated documents • In order to sign the Accession Agreement the applicant will need to review the Uniform Network Code in order to understand the terms and conditions of the agreement that are being agreed to. An electronic copy of the Uniform Network Code is published on the Joint Office of Gas Transporters website at the following address: www.gasgovernance.co.uk/UNC • In addition to the Uniform Network Code the applicant will require a copy of the UK Link Manual. The manual is published via the extranet system which can be requested using the secure access request form located at www.xoserve.com/CLC5.asp Return to main page Version 5 Apr 2012

11. Previous Page Next Page Legal Opinion • Where the applicant is not registered in England, Scotland or Wales a Legal Opinion is required by all Transporters to accompany the Accession Agreement. The applicant’s appointed lawyers should draw up the Legal Opinion (an example Legal Opinion can be provided by Xoserve upon request). The benefit of a Legal Opinion is to minimise potential exposure to both parties in the event of future disagreement or breach of contract. A Legal Opinion ensures that should a dispute or conflict arise, a resolution can be achieved through the relevant country’s legal system. Return to main page Version 5 Apr 2012

12. Previous Page Next Page System Access • Shippers may have access to the following applications once they have completed the User Admission process: • Online access to Gemini to facilitate NTS Entry and Exit Capacity management, Energy Balancing and Gas Trading. • As an alternative option to accessing Gemini data, an Application Programming Interface (API) has been developed by National Grid/Xoserve. To access these API’s it is necessary for a Shipper (Business Associate) to develop their own API client programme. Please see the API Usage Guidelines document located at http://www.xoserve.com/Gemini_Tech.asp if you intend to go ahead with any such development. • A Shipper Information Service (SIS) on which items of general interest will be published. This is a Lotus Notes based system, which operates like a bulletin board holding information of general interest to the gas industry such as weather reports, calorific values, etc. Return to main page Version 5 Apr 2012

13. Previous Page Next Page System Access - Continued • An additional service, independent to the IXN is also provided to all Users. This is the Active Notification System (ANS). A handset is provided to each User to issue communications at short notice, which are transmitted messages over a mobile radio network service. • In addition to the UK Link applications there are a number of services available to Users upon request, including: • Data Enquiry Service, an Internet based servicefor obtaining data relating to supply points held on Sites and Meters. • ConQuest, an online query management system used by both Users and Xoserve on behalf of the transporters to manage queries relating to supply point data held on Sites and Meters. Return to main page Version 5 Apr 2012

14. Previous Page Next Page Contingency Access System • In the event of a User’s system failing, contingency access for Gemini is provided in the form of an XP1 token. Although this is available at any time it is intended for use only when a main IX Network connection has failed. XP1 is a dial up service available from any location. • Each Shipper is issued with one free security token to connect to the system. • Additional tokens are available upon request but are subject to a charge. A maximum of three tokens can be held by each organisation at any given time. Return to main page Version 5 Apr 2012

15. Previous Page Next Page System Training • It is recommended that Gemini E-Training is carried out after the completion of the system set-up and prior to the Applicant User becoming an active Shipper. The web based training is provided at no charge. To request access to the Gemini E-Training package, please submit an email to Customerlifecycle.spa@xoserve.com detailing the names of the users who require access. Return to main page Version 5 Apr 2012

16. Previous Page Going Live • Once all User Admission obligations have been satisfied, Xoserve will notify the Applicant User and confirm the date that the Applicant User will become a live Shipper. This will be three business days after the final obligation has been satisfied. • In the event of applicant becoming a live User, Xoserve, on behalf of the Transporters will notify the User of the following: • Contact details for National Grid Transmission • Contact details for Xoserve • Names of all Uniform Network Code signatories • The Shipper will need to ensure that the Shipper Activity Numbers have been established on Gemini to facilitate Gas Flow Nominations. Return to main page Version 5 Apr 2012