System Management Principles Statement

� Compliance report for December 2013 and January 2014

� Summary of balancing actions and breaches for December 2013 - January

2014

� Performance compared to last year

2

Summary Report

00Number of Non-Material Breaches

00Number of Material Breaches

Jan-14Dec-13

2219Total

1710Total Number of Sell Actions

59Total Number of Buy Actions

Jan-14Dec-13

0

0

41

Jan-13

0Number of Non-Material Breaches

(Calendar year to date)

0Number of Material Breaches

(Calendar year to date)

22Number of Balancing Actions

(Calendar year to date)

Jan-14

Transporter Actions and Neutrality

� Energy Balancing

� Capacity

4

Transporter Energy Traded on the OCMJanuary 2013 to January 2014 Vs Previous Year

-33162891Jan – Dec 13

-3621242014 [YTD]

Sell [GWh]Buy [GWh]Year

National Grid Monthly Buys and Sells

Jan 2013 to Jan 2014 vs Previous Year

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Month

GW

h

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

Buy 2013/14 Buy Prev Year Sell 2013/14 Sell Prev Year

5

Days of Default SMP PricesFrom February 2013 to January 2014

71%77%94%Jan 14

BothSMPSSMPBMonth

SMPB Calculation Summary

Feb 2013 to Jan 2014

0

10

20

30

40

50

60

70

80

90

100

Feb

-13

Ma

r-1

3

Apr-

13

May

-13

Jun

-13

Ju

l-1

3

Aug

-13

Se

p-1

3

Oct-

13

Nov

-13

Dec

-13

Jan

-14

%a

ge

SMPB [NG Set Price] SMPB [Default Marginal]

SMPS Calculation Summary

Feb 2013 to Jan 2014

010

20304050

607080

90100

Feb-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Jul-13

Aug-1

3

Sep

-13

Oc

t-13

Nov-1

3

Dec-1

3

Jan-1

4

%ag

e

SMPS [NG Set Price] SMPS [Default Marginal]

6

Energy Balancing – Balancing Costs Nov - Dec 2013

Payments / Charges / Net Credit / Debit [Imbalance /

Scheduling / OCM] - 1st Nov to 31st Dec 2013

37,342,989

671,476

35,473,098

12,798,2637,965,111

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Credits Debits

Imbalance Scheduling OCM

Net Debit £2,291,785

7

Energy Balancing – Balancing CostsNov - Dec 2013

OCM Payments / Charges Graph

1st Nov 2013 to 31st Dec 2013

-2,000,000

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

01/1

1/2

013

08/1

1/2

013

15/1

1/2

013

22/1

1/2

013

29/1

1/2

013

06/1

2/2

013

13/1

2/2

013

20/1

2/2

013

27/1

2/2

013

Day

£

Payment [TTB]

Charge £ [TTS]Imbalance Payments / Charges Graph

1st Nov 2013 to 31st Dec 2013

-2,500,000

-2,000,000

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

01

/11

/20

13

08

/11

/20

13

15

/11

/20

13

22

/11

/20

13

29

/11

/20

13

06

/12

/20

13

13

/12

/20

13

20

/12

/20

13

27

/12

/20

13

Day

£

Payment £ [DCS]

Charge £ [DCT]

Scheduling Charges Graph

1st Nov 2013 to 31st Dec 2013

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

01/1

1/2

013

08/1

1/2

013

15/1

1/2

013

22/1

1/2

013

29/1

1/2

013

06/1

2/2

013

13/1

2/2

013

20/1

2/2

013

27/1

2/2

013

Day

£

Exit Charge £ [EXS]Entry Charge £ [ESC]Exit Charge £ [DXS]

8

Capacity NeutralityNet Cost / Revenue From 1st April 2013 to 31st December 2013

-£651,333Net Revenue

£0Revenue from Locational Sells and PRI Charges

-£85,537Non-Obligated Sales Revenue (Entry only)

-£110,940Entry Capacity Overrun Revenue

£0Total Entry Constraint Management Operational Costs

-£454,856WDDSEC/DAI Entry Capacity Revenue

Revenue/Costs

9

Capacity NeutralityRevenues from WDDSEC and DAIFrom 1st April 2013 to 31st December 2013

Capacity Neutrality

Revenues from WDDSEC and DAI

April 2013 to December 2013

£5,000

£25,000

£45,000

£65,000

£85,000

£105,000

£125,000

£145,000

£165,000

£185,000

St Ferg

usTees

side

Bar

row

Theddleth

orpe

Easin

gton

Bac

ton

Oth

er

10

Capacity NeutralityRevenues from Entry Cap Overruns and Non-Obligated Sales,and Locational Sells and PRI Charges. Totals From 1st April 2013 to 31st December 2013

£0 (FY13/14)Total

-Mar-14

-Feb-14

-Jan-14

£0Dec-13

£0Nov-13

£0Oct-13

£0Sep-13

£0Aug-13

£0Jul-13

£0Jun-13

£0May-13

£0Apr-13

Locational Sells and PRI charges revenue

Month

Total

Mar-14

Feb-14

Jan-14

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Month

-£85,537 (FY13-14)-£110,940 (FY13-14)

--

--

--

-£28,665-£3,364

-£27,943-£22,002

-£28,755-£5,355

--£11,538

--£6,080

--£16,257

--£33,996

--£7,376

-£175-£4,972

Non-obligated sales revenue

(entry)

Entry Cap Overrun Revenue

Operational Overview

12

National Composite Weather October 2013 to Feb 2014 vs. Historical Range

Month ahead ensemble weather

-5

0

5

10

15

20

01-Oct 01-Nov 01-Dec 01-Jan 01-Feb 01-Mar 01-Apr

Deg

ree

s C

WV

Ensemble

forecasts

2012/13

CWV

Mean

Ensemble

Seasonal normal

to maximum

Minimum to

seasonal normal

13

Mean

Co

mp

osite

Weath

er V

aria

ble

s

Decem

ber 2

013 v

s. P

revio

us Y

rs

Me

an

Na

tion

al C

om

po

site

We

ath

er fo

r De

ce

mb

er 2

01

3

0 1 2 3 4 5 6 7

2010195019621995196319351946196919961928200919781943199019701965196719301999195819911936200519471932198919291956200319511955198619842002200019981997197219851994197119531988

Degrees CWV

20

12

20

13

14

Mean

Co

mp

osite

Weath

er V

aria

ble

s

Jan

uary

2014 v

s. P

revio

us Y

rs

Me

an

Na

tion

al C

om

po

site

We

ath

er fo

r Ja

nu

ary

20

14

-4 -3 -2 -1 0 1 2 3 4 5 6 7

1962

1978

1944

1984

1928

2009

1958

1954

1979

1945

1981

1985

1930

1983

1963

1952

1955

1935

2000

1967

1959

2012

1961

1991

1949

1970

1942

1980

1972

2005

1993

1956

1987

2003

1968

1997

1973

1943

2011

1931

2004

1974

2007

Degrees CWV

20

12

20

13

Demands

16

Gas Demand Breakdown1st Oct 2013 to 2nd Feb 2014 vs Previous Year

Gas Demand Breakdown

1st Oct 2013 to 2nd February 2014 vs Previous Year

0

50

100

150

200

250

300

350

400

450

01-O

ct-

13

08-O

ct-

13

15-O

ct-

13

22-O

ct-

13

29-O

ct-

13

05-N

ov-1

3

12-N

ov-1

3

19-N

ov-1

3

26-N

ov-1

3

03-D

ec-1

3

10-D

ec-1

3

17-D

ec-1

3

24-D

ec-1

3

31-D

ec-1

3

07-J

an

-14

14-J

an

-14

21-J

an

-14

28-J

an

-14

04-F

eb

-14

11-F

eb

-14

18-F

eb

-14

25-F

eb

-14

04-M

ar-

14

11-M

ar-

14

18-M

ar-

14

25-M

ar-

14

mcm

NDM DM (Excl Interconnectors) Total Interconnector Export Storage Injection

SND Cold Demand Warm Demand Previous Years Demand

17

LDZ Demand1st October 2013 to 2nd February 2014

Gas Demand Breakdown [LDZ 2013/14 vs Previous Year] vs NTS Demand /

CWV's

1st Oct 2013 to 2nd Feb 2014

0

50

100

150

200

250

300

350

01-O

ct-

13

08-O

ct-

13

15-O

ct-

13

22-O

ct-

13

29-O

ct-

13

05-N

ov-1

3

12-N

ov-1

3

19-N

ov-1

3

26-N

ov-1

3

03-D

ec-1

3

10-D

ec-1

3

17-D

ec-1

3

24-D

ec-1

3

31-D

ec-1

3

07-J

an

-14

14-J

an

-14

21-J

an

-14

28-J

an

-14

Gas Day

mcm

0

2

4

6

8

10

12

14

16

LDZ Demand 13/14 LDZ Demand Previous Year NTS Demand 13/14 CWV 13/14

18

Po

wer G

en

era

tion

Octo

ber 2

013 to

Feb

ruary

2014

Ga

s C

on

su

mp

tion

for P

ow

er G

en

era

tion

0

10

20

30

40

50

60

70

80

30-Sep

07-Oct

14-Oct

21-Oct

28-Oct

04-Nov

11-Nov

18-Nov

25-Nov

02-Dec

09-Dec

16-Dec

23-Dec

30-Dec

06-Jan

13-Jan

20-Jan

27-Jan

03-Feb

10-Feb

17-Feb

24-Feb

03-Mar

10-Mar

17-Mar

24-Mar

31-Mar

mcm/d

Actu

al fo

r Po

we

r Ge

ne

ratio

nB

ase

Ca

seH

igh

Pre

vio

us Y

ea

r

19

Depressed Demand this Winter

Supplies

21

Gas Supply Breakdown 1st October 2013 to 2nd February 2014

Gas Supply Breakdown

1st October 2013 to 2nd February 2014 vs Previous Year

0

50

100

150

200

250

300

350

400

01-O

ct-

13

08-O

ct-

13

15-O

ct-

13

22-O

ct-

13

29-O

ct-

13

05-N

ov-1

3

12-N

ov-1

3

19-N

ov-1

3

26-N

ov-1

3

03-D

ec-1

3

10-D

ec-1

3

17-D

ec-1

3

24-D

ec-1

3

31-D

ec-1

3

07-J

an

-14

14-J

an

-14

21-J

an

-14

28-J

an

-14

04-F

eb

-14

11-F

eb

-14

18-F

eb

-14

25-F

eb

-14

04-M

ar-

14

11-M

ar-

14

18-M

ar-

14

25-M

ar-

14

Gas Day

mcm

/d

UKCS Norway (est) LNG Imports

BBL I(UK) LRS Supplies

MRS Supplies SRS Supplies Previous Year Actual Supply

22

Gas Supply Breakdown – IUK1st October 2013 to 3rd February 2014

IUK Export / Import volumes Oct 2013 - Feb 2014 vs Previous Year / SAP

-70

-50

-30

-10

10

30

50

01

-Oct

05

-Oct

09

-Oct

13

-Oct

17

-Oct

21

-Oct

25

-Oct

29

-Oct

02

-No

v

06

-No

v

10

-No

v

14

-No

v

18

-No

v

22

-No

v

26

-No

v

30

-No

v

04

-De

c

08

-De

c

12

-De

c

16

-De

c

20

-De

c

24

-De

c

28

-De

c

01

-Jan

05

-Jan

09

-Jan

13

-Jan

17

-Jan

21

-Jan

25

-Jan

29

-Jan

02

-Feb

Vo

lum

es

(m

cm

)

0

10

20

30

40

50

60

70

80

90

pri

ce

(p

/tm

)

IUK Export IUK Import IUK Import [Previous Year] IUK Export [Previous Year] SAP SAP [Previous Year]

23

Gas Supply Breakdown – LNG1st October 2013 to 3rd February 2014

LNG terminal flows Oct 2013 - Feb 2014 vs Previous Year / SAP

0

5

10

15

20

25

30

35

40

45

01

-Oct

05

-Oct

09

-Oct

13

-Oct

17

-Oct

21

-Oct

25

-Oct

29

-Oct

02

-No

v

06

-No

v

10

-No

v

14

-No

v

18

-No

v

22

-No

v

26

-No

v

30

-No

v

04

-De

c

08

-De

c

12

-De

c

16

-De

c

20

-De

c

24

-De

c

28

-De

c

01

-Ja

n

05

-Ja

n

09

-Ja

n

13

-Ja

n

17

-Ja

n

21

-Ja

n

25

-Ja

n

29

-Ja

n

02

-Fe

b

Volu

mes (

mcm

)

0

10

20

30

40

50

60

70

80

90

Pri

ce

(p

/th

)

SouthHookTer DragonTer Isle of grain

DragonTer [Previous Year] Isle of grain [Previous Year] SouthHookTer [Previous Year]

SAP SAP [Previous Year]

24

Gas Supply Breakdown – Norway1st October 2013 to 3rd February 2014

Norwegian* supply volumes Oct 2013 - Feb 2014 vs Previous Year / SAP

0

20

40

60

80

100

120

140

01-O

ct

05-O

ct

09-O

ct

13-O

ct

17-O

ct

21-O

ct

25-O

ct

29-O

ct

02-N

ov

06-N

ov

10-N

ov

14-N

ov

18-N

ov

22-N

ov

26-N

ov

30-N

ov

04-D

ec

08-D

ec

12-D

ec

16-D

ec

20-D

ec

24-D

ec

28-D

ec

01-J

an

05-J

an

09-J

an

13-J

an

17-J

an

21-J

an

25-J

an

29-J

an

02-F

eb

Vo

lum

es (

mcm

)

0

10

20

30

40

50

60

70

80

90

Pri

ce

(p

/th

)

Norway* Norway* [Previous Year] SAP SAP [Previous Year]

25

Gas Supply Breakdown – Storage1st October 2013 to 3rd February 2014

Storage flows Oct 2013 - Feb 2014 vs Previous Year / SAP

0

20

40

60

80

100

120

01

-Oct

05

-Oct

09

-Oct

13

-Oct

17

-Oct

21

-Oct

25

-Oct

29

-Oct

02

-Nov

06

-Nov

10

-Nov

14

-Nov

18

-Nov

22

-Nov

26

-Nov

30

-Nov

04

-Dec

08

-Dec

12

-Dec

16

-Dec

20

-Dec

24

-Dec

28

-Dec

01

-Ja

n

05

-Ja

n

09

-Ja

n

13

-Ja

n

17

-Ja

n

21

-Ja

n

25

-Ja

n

29

-Ja

n

02

-Feb

Volu

me

s (

mcm

)

0

10

20

30

40

50

60

70

80

90

Price (

p/tm

)

Storage Storage [Previous Year] SAP SAP [Previous Year]

26

Storage Stocks - UK1st Oct 2013 to 4th February 2014 Vs Previous Years

LRS Stocks

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

TW

h

LRS 2010/2011 LRS 2011/2012 LRS 2012/2013 LRS 2013/2014

MRS Stocks

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

TW

h

MRS 2010/2011 MRS 2011/2012 MRS 2012/2013 MRS 2013/2014

SRS Stocks

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

TW

h

MRS 2010/2011 SRS 2011/2012 SRS 2012/2013 SRS 2013/2014

27

201

3/1

4 R

efle

ctio

nS

tora

ge S

tocks

0

10

20

30

40

50

60

70

80

90

10

0

01-Apr

08-Apr

15-Apr

22-Apr

29-Apr

06-May

13-May

20-May

27-May

03-Jun

10-Jun

17-Jun

24-Jun

01-Jul

08-Jul

15-Jul

22-Jul

29-Jul

05-Aug

12-Aug

19-Aug

26-Aug

02-Sep

09-Sep

16-Sep

23-Sep

30-Sep

07-Oct

14-Oct

21-Oct

28-Oct

04-Nov

11-Nov

18-Nov

25-Nov

02-Dec

09-Dec

16-Dec

23-Dec

30-Dec

06-Jan

13-Jan

20-Jan

27-Jan

03-Feb

10-Feb

17-Feb

24-Feb

03-Mar

10-Mar

17-Mar

24-Mar

31-Mar

Net Storage Injection (mcm)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Storage Stock Percentage Full

Ro

ug

hH

um

ble

y G

rov

eH

atfie

ld M

oo

rH

orn

se

aH

olfo

rdH

ole

ho

us

e F

arm

Ald

bro

ug

h

Av

on

mo

uth

LR

S %

Fu

ll 20

12M

RS

% F

ull 2

012

SR

S %

Fu

ll 20

12L

RS

% F

ull 2

013

MR

S %

Fu

ll 20

13S

RS

% F

ull 2

013

28

Storage Stocks - EUFrom 1st Oct 2013 to 1st February 2014 vs. Previous Years

Total EU Weekly Storage Levels

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Oct

No

v

De

c

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Date

mc

m

2010/2011 2011/2012 2012/2013 2013/2014

Note: AGSI+ are no longer publishing aggregated data on hub level.

Storage Data for Wednesday 05-02-2014

29

Gas Supply comparison –Winter 2012/13 vs 2013/14

30

UK

Gas P

rices

1s

tJan

2013 to

4th

Feb

2014 V

s P

revio

us Y

ears

Sy

stem

Price

s

1st Ja

n 2

01

3 to

4th

Fe

bru

ary

20

14

Vs P

rev

iou

s Ye

ars S

AP

30

40

50

60

70

80

90

10

0

11

0

12

0

13

0

01-Jan-13

15-Jan-13

29-Jan-13

12-Feb-13

26-Feb-13

12-Mar-13

26-Mar-13

09-Apr-13

23-Apr-13

07-May-13

21-May-13

04-Jun-13

18-Jun-13

02-Jul-13

16-Jul-13

30-Jul-13

13-Aug-13

27-Aug-13

10-Sep-13

24-Sep-13

08-Oct-13

22-Oct-13

05-Nov-13

19-Nov-13

03-Dec-13

17-Dec-13

31-Dec-13

14-Jan-14

28-Jan-14

p/therm

SA

PS

MP

Bu

yS

MP

Se

llS

AP

Pre

vio

us

Ye

ar

31

What Operational Issues Affected Users?