Strawman Proposal – User Pays User Group

1. Strawman Proposal – User Pays User Group

2. Strawman Proposal – User Pays User Group Purpose • The purpose of the User Pays User Committee (‘the Committee’) is to discuss implementation, amendment or removal of non-code User Pays services and to provide an opportunity for members to discuss any issues that relate to the operation of the user pays services.  The group will make decisions on changes to the non-code User Pays services contract. • The Chairman will be appointed by the User Pays User Committee (‘the Committee’) until either the Committee dismisses the Chairman or the Chairman resigns.  The Chairman is required to operate as an independent party and cannot represent any member views. • NB. We are happy for the joint office to act as chair as they perform this task reasonably well for other fora Chairman

3. Strawman Proposal – User Pays User Group Membership: …Groups • Open to all signatories of the xoserve User Pays Contract. • There is an issue here if the DNOs do not sign the User Pays Contract. Signatories to the ASA is not sufficient, it’s a different contract with different SLAs and T & Cs. • The ASA Contract can always reference the User Pays Contract and over right clauses as appropriate.e.g. Conflict: In the event of any conflict between the provisions of this Contract and those of the User Pays Contract, the provisions of this Contract shall prevail over the User Pays Contract..  • When joining the Committee all members must advise the Chairman what the main interest is of their company (wording here to make clear that company refers to group level interest) from the groups defined below. • Groups: • Members must define themselves as one of the following: • Mainly focused as a domestic supplier/shipper • Mainly focused as an non-domestic supplier/shipper • Mainly focused as a transporter • Mainly focused as an end user

4. Strawman Proposal – User Pays User Group Voting – Low Bar • For:Logic would suggest that as changes to service lines will be paid for by the users of the altered service that significant changes would be considered carefully prior to implementation.  If a small majority of service users want a change it could be argued therefore that a change should be made.  This would also keep the voting process simple. • Against:A substantial number of users may be opposed to a change and may not be able to stop it from being implemented.  As some of these services are monopolistic this seems unfair. Voting – High Bar • For:As some of these services are monopolistic this would ensure that parties are not unfairly discriminated against. • Against:This could become a blocker to progress of changes which are beneficial to the majority of users.

5. Strawman Proposal – User Pays User Group Quoracy and Notice: Normal: • The meeting will only be quorate if there are at least [four] members present with at least [two] of the groups represented.  Members must be given at least [five] business days notice of a User Pays User Committee meeting.  If ultimately without transporters there will be 32 signatories is four a small number for quoracy? Urgent: • In the event that an urgent meeting is required of the User Pays User Committee then the urgent meeting will only be quorate if there are at least [six] members present with at least three of the groups represented.  Members must be given at least twenty four hours notice of an urgent User Pays User Committee meeting.

6. Strawman Proposal – User Pays User Group General Voting Structure: • For votes that do not relate to a change to the implementation, amendment or removal of non-code User Pays services then the voting mechanism shall be as follows: • Votes may be conducted only on subjects pre-notified to users through agenda items published a minimum of [four days] prior to a User Pays User Committee or on resolutions pre-defined and notified to members at least [twenty four hours] prior to a meeting.  • Any member may call for a vote on any matter that relates to the purpose or running of the Committee by indicating this to the Chairman during a meeting of the committee.  The member must define the resolution to be voted upon. Another member must then ‘second’ the call for the vote by indicating their agreement to the Chairman.  • The committee will then vote on the issue.  The resolution will pass only where the majority of members vote for the resolution.  In any event a resolution will pass only where at least [three] members vote in favour of the resolution.

7. Strawman Proposal – User Pays User Group Constituency Voting Structure: • For votes that relate to a change to the implementation, amendment or removal of non-code User Pays services then the voting mechanism shall be as follows: • Votes may be conducted only on subjects and resolutions pre-notified to users through agenda items published a minimum of [five days] prior to a User Pays User Committee. Where an urgent meeting has been called then voting may be conducted only on resolutions pre-defined and notified to members at least twenty four hours prior to the meeting.  • Any member may call for a vote on any matter that relates to the purpose or running of the Committee by indicating this to the Chairman during a meeting of the committee.  The member must define the resolution to be voted upon. Another member must then ‘second’ the call for the vote by indicating their agreement to the Chairman.  • Members will then declare their interest in the vote.  Members may only vote on resolutions or subjects they declare an interest in. • Members may be challenged to explain their interest in a vote by the Chairman.

8. Strawman Proposal – User Pays User Group Constituency Voting Structure (part 2): • The Chairman will ask each Group represented at the meeting that has a member that has declared an interest to vote on the resolution.  A Group will be considered to be in favour of a resolution where [the majority of members in that group] vote in favour. • The resolution will pass only where the majority of Groups vote for the resolution.  In any event a resolution will pass only where at least [two] members vote in favour of the resolution.

9. Strawman Proposal – User Pays User Group Reporting: • The Chairman is required to: • i) publish an agenda (for a normal meeting this will be published a minimum of 5 4 days prior to the meeting and for an urgent meeting this will be published a minimum of 24 hours prior to the meeting) and keep a record for each meeting • ii) send a copy of each agenda to all members and to Ofgem; • iii) ensure that copies of the minutes from each meeting are provided to all members and to Ofgem [and published on xoserve/joint office website].  Minutes must be provided no less than 5 business days following a meeting

10. Strawman Proposal – User Pays User Group Frequency: • Meeting shall be scheduled on a bi-monthly basis starting each January. • 10 Business Days prior to each meeting the Chairman will invite members to propose agenda items.   • The chairman will review the proposed agenda items and shall have the right to reject any items considered outside these terms of reference.   • The chairman will also review the number of proposed agenda items and will have the authority to cancel any meeting deemed to have insufficient business.

11. Strawman Proposal – User Pays User Group Other Issues • Definitions • E.g. Members • How is Group level defined • Principles • Standing Tasks • No go areas • Indemnities for Chair?