13 th July 2009 Meeting of Theft of Gas Review Group (UNC245)

Rates of Shipper Responses to the Monthly Unregistered Sites Reports Number of Shippers Which Were Issued Activity Reports vs. Number of Shippers Which Responded Nov 08Dec 08Jan 09Feb 09Mar 09Apr 09 Shippers Issued Reports Shippers Responded % 10.0%19.4%6.7%17.9%3.3%19.4% Number of responses stating YES – to confirm resulting in a confirmation (Oct08-March09) Yes to Confirm Confirmations 1, (54%)

Unregsitered and Shipperless Sites Industry Position April 09*June 09 Trend Description Unregistered Shipper Activity11, ê These reports are sent out shipper specific and include sites where shippers have provided an activity which suggests intention to confirm i.e., Confirmation rejection, Meter asset update to the C&D store, Conquest raised to create the M Number, End User. They are for created sites > 12 months Orphaned13312,227é This report is sent out to the whole industry either following a shippers response to the shipper activity report, that they have no further interest in the M Number or that no response is received within the period of production of the next Bi monthly report. They also include sites where a service has been completed and in some instances a meter already installed. They are for created sites > 12 months Shipperless Sites1,9984,267é These contain sites which have previously been confirmed and withdrawn with meter removed. Information provided suggests either the existing meter still on site or a new meter has been fitted e.g. Gas Safety Regulations (GSR) No Activity25,84424,492ê These contain meter points created on UK Link from 2007 onwards where no shipper activity has been recorded and that remain unconfirmed. They are for created sites > 12 months Legitimately Unregistered6,2826,193ê These contain sites which can represent one of the following reasons: Vacant sites No Gas meter but live service Service still in planning stage Meter Point created less than 12 months 34,14525,798ê These figures provide details of meter points that have a created date < than 12 months that remain unconfirmed - If not confirmed they will gradually feed into some of the above reports going out to industry TOTAL79,92976,321 * Preliminary figures - Reports are due to go out w/e 17th July 09

Breakdown of Shipper Activity TotalConquestC&D StoreConfirmation Rejections Service Requests

Sample of Unregistered LSP’s provided to a Meter Asset Manager Number with Meters45% Number with meter and Supplier26% Number with meters without Supplier19% Meter Fitted With Supplier %0.00% %15.38% %65.38% %7.69% %7.69% % %3.85%

Proposed MNo Creation/Unregistered Process Flow UIP xoserve Service planned. MNo Request Submitted to xoserve MPRN set up on UK- Link. Has service been cancelled? MPRN provided to UIP. Inform xoserve of cancelled service. Set MPRN to EX End YES Send MPRN to MAM to check for Asset Activity Check for Asset Activity and respond to xoserve Has asset been fitted? MPRN added to the Shipper Activity Report Receive Shipper Activity Report and take appropriate action NO YES MPRN added to the Legitimately Unregistered Report DN Investigate. Possible Disconnection End YES Shipper MAM Has MPRN been Confirmed? NO Check for Shipper Activity Shipper Activity Detected? NO Has MPRN been Confirmed? YES NO YES Legend MNo Creation Process Shipperless Sites Process If EU refuses to sign Supply Contract, submit to DN for investigation Check C&D Store Activity Detected ? NO YES MPRN Unconfirmed after 12 months from creation NO

Root Causes now being discussed at the Unregistered Working Group meetings  Timescales from MPRN requested to service laid  Services laid and no MPRN request received  Address Clarity  MPRN Rejections  Job Cancellations  M Number provided to requester  Correctly tagging services  IGT sites  Code 12’s and Fast Track requests  Shipperless sites  Industry co-operation