Southern Electric Power Distribution plc. Metering and Data Services Statement. Effective from 1st April Version 1.0

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Southern Electric Power Distribution plc Metering and Data Services Statement Effective from 1st April 2017 Version 1.0 Scottish and Southern Electricity Networks is a trading name of: Scottish and Southern Energy Power Distribution Limited Registered in Scotland No. SC213459; Scottish Hydro Electric Transmission plc Registered in Scotland No. SC213461; Scottish Hydro Electric Power Distribution plc Registered in Scotland No SC213460 (all having their Registered Offices at Inveralmond House 200 Dunkeld Road Perth PH1 3AQ); and Southern Electric Power Distribution plc Registered in England & Wales No. 4094290 having its Registered Office at No. 1 Forbury Place, 43 Forbury Road, Reading, Berks, RG1 3JH. www.ssen.co.uk

SOUTHERN ELECTRIC POWER DISTRIBUTION PLC CONTENTS This document contains the statement which sets out the basis of charges for Southern Electric Power Distribution plc s legacy distributor metering services in its area. 1. INTRODUCTION... 2 2. PERSONS ENTITLED TO APPLY FOR DISTRIBUTOR METERING AND DATA SERVICES... 2 3. PROCEDURE... 3 4. APPOINTMENTS/ DE-APPOINTMENTS... 3 5. BASIS OF CHARGES FOR METERING AND DATA SERVICES/ PRINCIPAL TERMS AND CONDITIONS... 4 6. CONTACT DETAILS... 5 SCHEDULE 1: DAILY CHARGES FOR NHH MAP SERVICES... 6-1 -

SOUTHERN ELECTRIC POWER DISTRIBUTION PLC STATEMENT OF CHARGES FOR DISTRIBUTOR METERING SERVICES Effective from 1 April 2017 1. INTRODUCTION 1.1 Scottish and Southern Electricity Networks is a trading name of Southern Electric Power Distribution plc, Scottish Hydro Electric Power Distribution plc and Scottish Hydro Electric Transmission plc, all of which are parts of the Power Systems division of SSE plc. Southern Electric Power Distribution plc is the licensed electricity distribution business which operates networks in the Central Southern England part of Great Britain. It also owns and operates small, embedded distribution systems in other parts of England and Wales. This statement is produced by Southern Electric Power Distribution plc, referred to in this statement as the Company, in accordance with the requirements of its electricity distribution licence. 1.2 This statement describes the terms and conditions under which a charge for the provision of legacy distributor metering and data services within the Southern Electric Power Distribution plc ( the Company ) distribution service area will be made. The statement is prepared in accordance with the requirements of the Company's Licence Obligation (LC 36) that requires a statement of charges for legacy metering and data services to be published in a form approved by Ofgem. 1.3 Words and expressions used in this statement have (unless specifically defined herein) the definitions given to them in the Act or the licence and shall be construed accordingly. The charges shown are current at the time of publication but are subject to change without notice, except as otherwise provided by agreement. All charges are quoted exclusive of VAT. 1.4 This statement has been approved by the Gas and Electricity Markets Authority. Electronic copies of this statement are available, from our website: www.ssen.co.uk. Alternatively hard copies can be provided at a cost of 5.00 plus VAT, per copy. 2. PERSONS ENTITLED TO APPLY FOR DISTRIBUTOR METERING AND DATA SERVICES 2.1 From 31 March 2007, basic metering services, other than the provision of legacy meters, no longer fall within the definition of a distribution business and Distribution Network Operators who wish to continue providing new and replacement meters and meter operation (MOp) services need to do so through a separate subsidiary. SSE Metering Limited is the SSE plc subsidiary providing such services. 2.2 Any person, whether as an individual or as an Electricity Supplier, hereinafter referred to as an Applicant, may continue the use of legacy metering equipment (the Services ) (meters installed prior to 1st April 2007) within the Company s authorised distribution services area. - 2 -

2.3 Legacy meters shall continue to be provided by the Company until the end of their useful economic life, i.e., until such time as the meter is replaced and removed from the Applicant s premises. 3. PROCEDURE 3.1 Applicants will be required to maintain the relevant agreement(s) for distributor metering setting out the obligations of both parties, including the arrangements for invoicing and payment. The agreement(s) include details of service levels, which will apply to the services being provided. 3.2 If the Applicant and Company fail to agree contractual terms within a reasonable time, or any variation of contractual terms proposed by the Company, either party may request settlement of the dispute by the Office of Gas and Electricity Markets (OFGEM). The matter in the first instance should be referred to OFGEM at the address shown in paragraph 6.1 of this statement. 3.3 The Company will not be obliged to maintain any legacy agreement if in the Company's opinion it is likely to breach any of its statutory or licence obligations or any obligations contained in existing agreements into which the Company has entered as part of its licence obligations. 3.4 Where an Applicant, having entered into an agreement(s) with the Company terminates it, for whatever reason, the entitlement to use the Company s Services will cease forthwith, but the Applicant will remain liable under the agreement(s) unless and until all charges which would have accrued had any of the agreements continued to be in place have been paid. An Applicant wishing to terminate any agreement should give the Company the notice required in accordance with its terms, and should ensure that all registrations of customers under the MRA have ceased. 3.5 The Company may wish to, at its sole discretion, carry out metering activities, which are outside the scope of the price controlled activities. The Company s charges, for these excluded service activities, will reflect the costs incurred (including profit) in performing those services. 4. APPOINTMENTS/ DE-APPOINTMENTS 4.1 The Company s obligation to provide legacy Services does not apply to a given Supplier in relation to metering points at which the supplier has de-appointed the distributor network operator as MAP and MOp. 4.2 The transmission of a large number of Data Transfer Network messages in any working day may interfere with the processing of other data transfer messages associated with the provision of services to all licensed Electricity Suppliers. Should a licensed Electricity Supplier choose to de-appoint the Company from all (or substantially all) of the Metering Point Administration Numbers (MPANs) they supply, they will be required to agree a migration plan with the Contract Manager, see paragraph 6.1. Provided the licensed - 3 -

Electricity Supplier agrees a migration plan with the Company, charges for de-appointment will not be made. 5. BASIS OF CHARGES FOR METERING AND DATA SERVICES/ PRINCIPAL TERMS AND CONDITIONS 5.1 The charges payable in relation to the legacy Services will be calculated in accordance with the principles set out below. Such principles will also be incorporated to the extent appropriate in the terms and conditions set out in any agreement for distributor metering and data services. 5.2 The metering charges are set so that they are within the price controls limits set by OFGEM. These price controls cap the prices that the Company can charge electricity suppliers for providing domestic credit and prepayment meters and limit the revenue for meter operation. These charges for the 2017/18 period have been set so that they are equal to the applicable tariff caps. The level of the revenue cap will adjust in line with a revenue driver based on the volume of metering activities. 5.3 Schedule 1 details daily charges on a pence per MPAN basis for non half-hourly MAP. The charges for the provision of legacy MAP services are on the basis that the certified meter and any related timing device or other associated equipment is, and remains, in the ownership of the Company. The individual services are described in schedules to the relevant Agreement. The daily MAP charges reflect the costs of providing, by way of hire, the certified meter asset and any related timing device or other associated equipment only. The MAP charges reflect depreciation costs, an allowance for a return on the value of meter asset, an amount for overheads and the costs associated with replacing meters at the end of their useful life, on an average annualised basis. In setting the tariff caps, OFGEM assumed that the Company s domestic credit meters are depreciated over twenty years, key and token meters over 9.72 years. The non-tariff-capped charges are regulated through a non-discrimination condition in the Company s licence. The methodology used to derive the tariff capped and the non-tariff capped MAP charges are on a costs reflective basis reflecting the type and functionality of the Company s certified meter and any related timing device or other associated equipment. As from 31 March 2007, OFGEM lifted the requirement on distributors to offer terms at a price controlled rate for the provision of new / replacement meters. Distributors are still required to offer terms at a price capped rate for the rental of electricity meters installed prior to 31 March 2007. 5.4 The charges shown in Schedule 1 are stand alone charges which will be invoiced in accordance with the terms of the agreement(s) between the Company and the applicant. Invoices will be produced within 21 days after the end of a calendar month specifying the payment due from the supplier for that month. Payment terms are contained in the relevant agreement for each service. Generally, payment is required within 30 days of receipt of an invoice. 5.5 The charges shown in Schedule 1 exclude VAT, which will be applied at the appropriate rate. - 4 -

6. CONTACT DETAILS 6.1 This statement has been prepared in order to discharge the Company s obligation under Condition 36 of the Licence. If you have any questions about the contents of this statement please contact our metering agents at the address shown below. Also given below are contact details for the Office of Gas and Electricity Gas Markets should prospective Applicants wish to enquire separately on matters relating to this statement. Andy Shean SSE Metering Limited Victoria Terrace BRISTOL BS2 0TD Tel: 078250 14060 e-mail: andy.shean@sse.com Customers requiring the Company to provide legacy half-hourly metering, telemetry or data processing equipment required for the measurement of supply will be charged the costs of such metering and its installation within a separate metering contract. For further details and the terms and conditions of metering services, please contact our metering agents: Andy Shean SSE Metering Limited Victoria Terrace BRISTOL BS2 0TD Tel: 078250 14060 e-mail: andy.shean@sse.com Any enquiry for Ofgem should be addressed to: Ofgem 9 Millbank London SW1 3GE www.ofgem.gov.uk - 5 -

SCHEDULE 1 SOUTHERN ELECTRIC POWER DISTRIBUTION PLC Daily Charges for Non Half-Hourly Meter Asset Provision (MAP) Services for meters installed prior to 31/03/07: Effective from 1 April 2017 Group Legacy Meter Type p/mpan/day 1 Single phase Single Rate Credit Meter 0.465 2 Single phase Multi Rate Credit Meter 2.380 3 Polyphase Single Rate Credit Meter 1.635 4 Polyphase Multi Rate Credit Meter 2.772 5 Single phase Single Rate Prepayment Meter 3.753 6 Multi Rate Prepayment Meter 3.912 7 Other CT/LV/HV 1.791-6 -