P274 – National Revenue Protection Service

2 Principles of X-industry gas theft service The impact on the participants will be revenue neutral (no supplier should have the opportunity to make money from theft) Focussed initially on Gas, with potential to add electricity and water theft at a later stage Seek commercial and contractual simplicity Service will operate under contractual SLAs (to be defined later) Single provider, either nationally or by area, for the provision of services for the investigation & detection of the illegal use gas (core service will be national, optional services may be local) Appointed by competitive tender Provider will provide prescribed agreed base level service for all Provider will have performance incentives leading to provider determined theft detection methods (Proactive) Provider will be able to provide additional services as negotiated with individual parties Contractual parties potentially include: Suppliers (all mprns) and Transporters (including iGTs) through standard base contract All parties required to sign up to base contract Parties to provide information to Provider as and when required Provider will manage core product and be capable of managing all optional aspects

3 The Operating Model Get data & intelligence Data analysis & reporting Investigation of individual cases Debt recovery Prosecution & risk management Payment & usage history (billing history) Risk based profiling Examine Meter history Collections Internal watch list (for follow up) Tip offs from external party Transporters – safety info Triggers Standard industry reporting Visit reports (history) Legal action Transfer to prepayment (PPM) Site visits – engineers & meter readers No Vend information from PPMIP Data collation Geographical- clustering Stolen meter register Unannounced site visit (may include meter works) Review refused access records Gather evidence Categorise cases Disconnect customer Industry revenue accounting Reasonable endeavours scheme Revenue re- allocation (eg RBD) Conquest reporting Customer risk level/case history Assess volume of energy taken Allocation of joint claims across suppliers Manage incentives (for tip offs)* Unreg or Shipper-less sites >12mths (XOServe) Follow up shipperless sites Identify vulnerable customers * Requires further discussion. Should this be in scope?

4 Suggested Operating Model – national revenue protection service Get data & intelligence Data analysis & reporting Investigation of individual cases Debt recovery Prosecution & risk management Payment & usage history (billing history) Risk based profiling Examine Meter history Collections Internal watch list (for follow up) Tip offs from external party Transporters – safety info Triggers Standard industry reporting Visit reports (history) Legal action Transfer to prepayment (PPM) Site visits – engineers & meter readers No Vend information from PPMIP Data collation Geographical- clustering Stolen meter register Unannounced site visit (may include meter works) Review refused access records Gather evidence Categorise cases Disconnect customer Industry revenue accounting Reasonable endeavours scheme Revenue re- allocation (eg RBD) Conquest reporting Customer risk level/case history Assess volume of energy taken Allocation of joint claims across suppliers Manage incentives (for tip offs) NSP core NSP optional Unreg or Shipper-less sites >12mths (XOServe) Follow up shipperless sites Identify vulnerable customers