1 Industry Shipperless &Unregistered Working Group Thursday 4 th March 10.30am at xoserve

2 Agenda  Introduction: (30 minutes) (Alison Jennings & Mark Woodward)  Previous minutes (MW)  Straw Man Comments  Route Cause: (1 hour 30 minutes)  Root cause topics identified so far.  Formulate a plan to tackle root cause.  Statistical Information: (30 minutes) (Mark Woodward)  Overall industry position with unregistered and shipperless meter points  Analysis of latest movement to the population from the reports sent out in late November for October/November 2008 meter point creations

3 Questions and Comments Captured at the Last Shipperless And Unregistered Workgroup Meeting Regarding the Shipperless and Unregistered Sites Process “Strawman” as Presented by David Watson. 1. The process set out in the Straw Man should only apply to MPRNs for which xoserve has received significant assurance that no shipper supplies gas to the site. 2. Do Networks have a legal right to disconnect Shipperless and Unregistered Sites where no illegal connection is involved? If not, what would be the end result of this process? 3. There is a potential for The Gas Act 1986 – Schedule 2b - Deemed Contract to have an influence on this. 4. How will this process be funded? Would shipper liabilities be appropriate if it is found that an end user has a contract with a shipper when a Network engineer attends to disconnect? 5. Will this process apply to existing Shipperless and Unregistered Population, or will it only apply to newly classified sites? 6. What are the governance options for this process? Will it be included in the UNC? 7. What criteria will be used to determine vulnerable customers, and what will be the end result for these?

4 Route cause

5 Route Causes Identified So Far Timescales from MPRN requested to service laid - At quote acceptance stage Job cancelled or deferred and xoserve not informed - UIP Cancellation Reports (Shippers have already confirmed) - M Number & details provided to the requestor (shipper rejections meter point does not exist) - Code 12 requests – Service not in ground - A lot of work for all parties Quotation accepted and job complete but no MPRN request submitted - Rejections not re-submitted - Queries manifest themselves as Fast Track Address clarity - Changing addresses prior to ownership - Changing addresses to PAF to those submitted by UIP - Confirmation rejections due to postcode (original M Number & address provided to the requestor, customer provided) not viewing IAD prior to submission IGT/LPG Sites created - Growing market how do we prevent ending up on UK Link?

6 Route Causes Identified So Far Existing Services not set to DEAD - Existing Services set to DE in error - Awareness of existing services Incorrectly tagging services - Potential dual billing - Potential duplicates - Potential crossed meters M Number Allocation process - Requests for M Numbers - Previous batch of MPRN’s not fully utilised Duplicates (MNC queries) - Are we asking the right questions? Legitimately Unregistered Sites - What do we class as legitimately unregistered?

7 Route Causes Identified So Far Meter fitted not confirmed - MAM information on meters fitted - C&D store on shipper provided meter information Knowledge (all parties) - Better understanding of process and the knock on implications to other parties Communication

8 Fast Track Analysis  We compiled a report listing all Fast Track Queries received over a 2 month  period. We carried out some analysis with the aim of identifying why these  were not raised via the UIP route. Our Findings were as follows: VolumePercentage  UIP Creation rejected and not returned %  UIP Creation never raised27063%  UIP Creation received around the same time4911.8%  Address or quality issue153.5%

9 UIP M Number Creation process Service Requester xoserve Service planned & M Number requested for creation on UK Link System validation checks performed Service cancelled Service laid and tagged Rejected Reinvestigated Request for Service Utility Infrastructure provider (UIP Start Details provided of M Number created on UK Link Accepted Details provided of M Number used for service Meter point details on UK Link set to EX Information returned on cancelled service Service Cancellation System validation checks performed Reinvestigated Rejected Accepted Batch of MPRN’s requested Finish Start Finish

10 Shipper M Number Creation process End Consumer xoserve 2. M Number requested for creation on UK Link via FOM or MNC 3. System validation checks performed 6. MPRN provided to MAM meter work planned Rejected 4. Reinvestigated by Shipper 1. Meter installation required Shipper 5. Details provided of M Number created on UK Link Accepted 7. M Number details provided date meter work planned Finish Start

11 Unregistered and Shipperless Process Shipper xoserve Shipperless Report – Produced Bi- monthly. Consists of: GSRs and TOGs No Activity Report Activity No Activity Shipper Activity Report. Consists of: Confirmation Rejections Conquest MNo Requests UK-Link Meter Update Rejection Service Request Unregistered Reports – Produced Bi- Monthly. Contains MPRs that have not been confirmed 12 Months after their created date Meter Point set to EX Orphaned Report Service Not Yet Completed Service Cancelled Contact UIP, Network or MAM to verify service laid and possible meter fitted Service Installed Legitimately Unregistered. Consists of: Vacant Sites No Gas MOD517 Service Still in Planning Issued To All Shippers Issued To Specific Shippers Confirmation No Confirmation Within 2 Months start

12 Statistical Information

13 Overall Industry unregistered and Shipperless Sites meter points Industry Unregistered and Shipperless Sites (Produced on a Bi-Monthly Basis) Unregistered SitesMay-09Jul-09Sep-09Nov-09Jan-10Description Shipper Activity11, 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 Orphaned TOTAL 13312,22714,622 15,67215,524 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 With Meter 5,1185,276 Shipperless Sites - Shipper 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) Shipperless Sites - Industry1,9982,0212,2942,2542,232 No Activity25,84427,32328,27523,77124,947 These contain meter points created on UK Link where no shipper activity has been recorded and that remain unconfirmed. They are for created sites > 12 months Legitimately Unregistered6,2826,1935,9876,5726,841 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 34,14525,79831,05826,03226,484 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 TOTAL79,92974,53983,54675,53777,353

14  Next reports to be produced in late March  Shipper Activity - Responses to January Reports: - 3 shipper short codes - 42 sites - Some excellent information: - YES – Intend to Confirm – 8 NO Live service – 30 Alternative MPRN – 3 No contract – 1  Orphaned sites – Currently holding: No contract with End Consumer Intend to confirm Overall Industry unregistered and Shipperless Sites meter points

15  Shipperless Sites – Responses to January Reports: - 6 shipper short codes - 70 sites Overall Industry unregistered and Shipperless Sites meter points Demolished Removed Warrant MAM Confirmed Removed Site visit no meter or service No Account held Alternati ve MPRN  No Activity sites - Anticipate significant reductions over the next few months - Responses from some UIP’s Between 20 – 35% cancelled jobs Between 5 – 15% deferred jobs

16 Analysis of latest movement to the population from the reports sent out in late November for October/November 2008 Total initially sent out NovemberConfirmationsSet to EXDeferred Legitimately Unregistered Left O/S With Meter details Without Meter details Shipper Activity No Activity1, (Cancelled by UIP)68 2 (MOD517) (Service no meter)