Theft of Gas RbD fund reallocation model Gareth Evans
Current Deficiencies potential negative publicity from errors in investigation; the lack of a direct recompense for the outlay in investigating the customer,; the high likelihood that no lost revenue will be recovered without court action. Industry-wide action can alleviate these issues
Requirements of External Agency Access to Supplier Information Access to Transporter Information Ability to contact customers directly, or to ensure that the another party will contact the customer Transparency in their processes and service offerings to ensure that the agency has suitable oversight and public exposure.
Agency Framework Tender for agency will be undertaken by Suppliers jointly, Each Supplier would have a bilateral contract with the agency Oversight mechanism of agency and Shipper activity put in place May need licence/UNC obligation to ensure agency effectiveness.
Agency Activity Central agency will compile its data from several sources to build up a picture of Gas Theft and investigate. Agency will identify which sites are likely theft of gas sites and recover monies. Some form of Supplier involvement may be preferable/optimum but agency needs to ensure that Supplier pursues customer appropriately.
Agency Funding Primary means of funding via cost recovery from offending customers (“Debt Collector” model). Can either be a set percentage of all recovered monies Agency buys the debt and then tries to recover over the outlay. May also need a retainer payment (based on Meter Point, AQ, etc) to ensure a consistent service.
Cost recovery Agency recover is tasked to recover costs from identified sites Any costs recovered, minus the incentives payments, are redistributed to the market in proportion to RbD market share. No energy reallocation mechanism, so minimal transporter involvement.
Issues Supplier internal teams Can be accommodated with variable service offering within the common framework Data provision May need UNC/licence obligation to provide Agency oversight Energy ombudsmen provides a precedent.
Contact Details Happy to answer questions : Waters Wye Associates: Gareth Evans