Theft: Shipperless Arrangements 15th June 2009

Goals We need to identify a solution for someone to charge the end user for gas consumed whilst shipperless. Ensures the costs are borne by those that use the gas rather than the general population Provides incentive for shippers to identify and attempt to sign up these sites. A credible industry should be able to ensure customers who use gas have a mechanism for paying for it Removes perverse incentives We need to finalise the discussions on a mechanism for sites to be disconnected should they refuse to sign up with a shipper. Gas Act 1986, Sch 2B clause 23 and 18.

Networks can retrospectively charge for usage Our legal advice has confirmed that Network Owners have the existing right to retrospectively charge end users for gas consumed whilst shipper-less It is important we make use of this right. Without it There will be no incentive for shipperless customers to sign up with a supplier. Fairness: People should pay for what they have used. Consumers will pay more overall

This is reinforced by the right to disconnect in the Gas Act Gas Act 1986, Schedule 2B, “The Gas Code” Clause 23. Network owners right of entry. Clause 18. Network owners right to disconnect. This presupposes that a process has been followed to allow the customer suitable opportunity to register with a shipper. Shippers have no right of entry or disconnection on shipperless, therefore the solution must be network based.