CER Update Industry Governance Group 21 st September 2011

Publications Customer ProtectionConsultationDecision Prepayment Metering in the Electricity and Gas Markets (CER/166) Electricity and Natural Gas Supplier Handbook (CER/11/168) Demand SideConsultationDecision Proposed Changes to the Winter Peak Demand Reduction Scheme and Powersave Scheme 2011/12 (CER/11/165) Market Information – Regular Reports ww.cer.ie – elec retail - reports & publications Change of Supplier weekly update Electricity and Gas Customer Disconnections Report July – August 2011

Work streams Working Groups Prepayment Meter Project Supplier Group Forthcoming consultations Market Monitoring Licence Review Smart meteringTimelines Gas trial & Cost Benefit Assessment (CBA)September Consultation on Smart Metering national rollout design & implementation October Decision on Smart Metering national rollout design & implementation November/December

Debt Flagging for Electricity & Gas Customers – Industry Code

Industry Code - Drafting Drafting – Input from –Electricity & Gas Market Participants –Office of the Data Protection Commission (ODPC) August GMARG/IGG – High Level Aspects Draft Code – pre Commission approval circulated to Industry & ODPC Commission approval – Re-circulated Main points presented today

1. Grounds to Raise a Flag (I) As per decision; From when amount fell due, not bill issued, this typically 14 days from bill issued. Customer Category Debt Value & Duration Threshold Domestic> €250 for > 60 days from due Small BusinessElec (LV-NonMD/DG5) Gas (NDM <73MWh) > €750 for > 60 days from due - TBC Medium BusinessElec (LVMD/DG6) Gas (NDM >73MWh) > €1,500 for > 60 days from due - TBC

Outstanding deposits excluded Cannot raise a Flag where customer pursuing complaint re monies owed Must adhere to Industry thresholds & timings Must issue a flag where relevant criterion per customer category has been satisfied. 1. Grounds to Raise a Flag (II)

Change of Legal Entity (All Customers) –Cannot flag new tenant CoS where debt accumulated by previous tenant –Elec: CoLE signalled on 110 message Losing supplier cannot raise flag Inferred CoLE – flag not forwarded to new supplier –Gas: CoLE not signalled → Options Discussed at August GMARG ODPC Advice New supplier ascertain whether new tenant & not yet signed up – if site flagged – flag ignored. 1. Grounds to Raise a Flag (III)

2. Timings Old supplier to raise flag: –Elec: Lists submitted to MRSO by COB on Mondays & Wednesday –Gas: Within 2 business days New supplier to decide action –Elec: Within 2 business days –Gas: Within 3 business days

3. Customer Communication (I) Communication Re Flagging Process –ODPC Advice: Domestic Sign Up Process –Customer must be made of aware of debt flagging at sign up –Notice must be included on domestic customer application forms – online, paper, phone –Terms & Conditions only not sufficient –Tick Box – read & understood notice –Standard wording, otherwise ODPC sign off

3. Customer Communication (II) Communication Re CoS Cancellation Within 5 business days; Gaining supplier issue notification in writing: –CoS request cancelled & why –Advise customer contact current supplier –contact details for MABS or an appropriate alternative, in the case of domestic customers - TBC.

4. Dual Fuel Dual Fuel – Losing Supplier –Can only flag account which meets the industry debt flagging criterion Dual Fuel – Gaining Supplier –Where 1 account is flagged and not the other: –Supplier can only proceed with CoS for non- flagged account only if obtained customer agreement to switch for one fuel and not dual fuel –If no agreement obtained, proceed or cancel CoS requests for both accounts

6. Reporting CER monitoring debt flagging process On monthly basis, receive from DSOs –# CoS requests flagged by losing supplier –# CoS cancellations following flag –Elec Market Only – # CoS requests with CoLE # Debt flags not forwarded to gaining supplier by MRSO due to inferred CoLE CER conduct spot checks from time to time

PPM in Electricity & Gas Markets

Consultation - Background Current Economic Climate –CER/10/217 Disconnection CoP Guidelines –Keep disconnection to a minimum: Customer must be offered a PPM before a Supplier can request a disconnection –CER/11/106 Debt Flagging Decision –Losing Supplier can flag to gaining supplier where customer debt above industry thresholds Suppliers concern over compatibility of CER/10/217 & CER/11/106

Consultation - Options PPM Customer Repaying Debt – 2 Options: Option A – Status Quo –Customer ceases paying debt when changes supplier - supplier pursues customer for outstanding debt separately Option B – Debt Travels –Customer must continue to pay off outstanding arrears after they switch supplier

Consultation – Next Steps Responses due 15 th September Decision Paper issued asap.