11 User Pays User Committee 16th February 2010

2 Agenda  Minutes & Actions from previous meeting  Agency Charging Statement Update  Change Management  Change Proposal Update  Modification Update  Operational Updates  AOB

3 Agency Charging Statement

4 ACS Update  Joint Office website has been updated new location for current ACS  Any questions on process please contact; 

Agency Charging Statement Revision for 1 st April 2010

6 Objectives  Set ACS Prices for 1 st April 2010  Summary of the ACS Annual Report  Costs for this year 2009/10 and next  Demand forecasts  2009/10 forecast financial performance  2010/11 forecast financial performance  ACS price changes for 1 st April 10  Timeline

7 What have we done?  Updated forecasts  Revised demand forecasts for 2010/11 based on actual service usage & customer updates  Reviewed cost forecasts in light of actual costs and forecast demand for service provision for 2009/10 and next year including a forecast of efficiencies

8 Annual Report in Summary: Forecast Costs  Forecast cost of User Pays service provision  2009/ £3.02 million  2010/ £2.79 million  Costs have been able to be reduced by £230,000 due to increased efficiencies  This represents a 10% reduction in real terms

9 Annual Report in Summary: Updated Demand Forecast for User Pays Services  Review of demand forecast took into account  Actual use to date  Updated customer forecasts  For ad-hoc services historical data was used to create a trend  Results  IAD demand is 21,000 accounts  Telephone services are broadly similar to the previous year  reporting usage continues to decline  USRV resolution is lower than originally anticipated  Demand forecast table updated with new demand volumes, published as Appendix 2 of the ACS and included in the Review Report

10 ACS Prices  Prices continue to be set in accordance with the charging methodology set out in the approved ACS  Prices are a direct relationship between the cost of providing the service and demand plus a margin (6% as agreed by Ofgem)  There are price changes in the 2010/11 ACS  Overall the majority of customers will see their monthly User Pays invoice fall (based on December 09 demand levels)

11 ACS Prices – IAD and Telephone  IAD  Proposed monthly charge £6.25 per account  Reduction against the annual average charge this year of £7.93  The reduction has been achieved through a combination of increased efficiencies, insourcing helpdesk activities and increased demand  Telephone Enquiries  The proposal is to increase prices for all the telephone bands  This is reflective of an increase in associated costs (both people and system support), however these have been kept to a minimum  For example; Band B (the most popular band) will increase to £2,520 or £2.52 per call

12 ACS Prices – Reporting and SARs  Reporting  There has been a continuing decrease in demand for this service which has resulted in the unit price increasing  The new price for the report for less than 1,000 MPRNs is £218  The new price for the report for greater than 1,000 MPRNs is £321  Shipper Agreed Reads (SARs)  Customer demand has shifted away from and facsimile to the electronic U01 file  U01 file prices remain at 2009/10 level  and facsimile new prices are £2 and £7 respectively

13 ACS Prices – Must Reads and USRV Resolution Service  Must Reads  To be confirmed  USRV Resolution (MOD 192 service)  The new price is £53 for a desk top resolution  The new price is between £99 and £105 for a desk top and site visit resolution (depending on Network)  Costs have reduced to reflect fall in demand but a core level of staffing is still required

14 ACS Prices – M Number DVD, Portfolio Reporting, User Admission and AQ Enquiry  The following services are seeing the first price increase in two years  Increases are due to inflationary pressures (both people and system costs)  The new M Number DVD price will be £1,400 for 4 DVDs  All Portfolio reports have a new price e.g. the Annual Asset Portfolio is £1,500 pa, the Query Management Standards of Service is £252 for 12 reports  The new AQ Enquiries price is 2 pence  The new User Admission price is £4,130

15 Updated Revenue Forecast 09/10 and 10/ / /11 £millions Revenue  3.2 Revenue 2.98 Cost 3.02 Cost 2.79 Profit 0.18 Profit 0.19 Return 6% Return 6%

16 Timeline for the ACS Review  Draft revised ACS and Review Report published on 8 th February, presented to customers at the 16 th February UPUG meeting  Customers’ formal comments requested by 22 nd February to  Review Report, revised ACS and customer responses to Ofgem on 1st March  New prices effective from 1 st April, assuming Ofgem do not veto proposal

17 Change Management 17

18 Update on Change Process  UPCO002 - IAD Last Access Report  Business Evaluation Report (BER)  Next Steps  Updated Timeline

19 Modification Update 19

20 Modifications identified as potential User Pays  0209 – Rolling AQ  0231 – Changes to the Reasonable Endeavours Scheme to better incentivise the detection of Theft  0246B – Quarterly NTS Entry Capacity User Commitment  0248 – Meter Reading Replacement  0253 – Facilitating a Supply Point Enquiry Service for Large Supply Points  0255 – Publication of Objection Rates for LSP Supply Points  0263 – Enabling the Assignment of a Partial Quantity of Registered NTS Exit (Flat) Capacity

21 Modifications identified as potential User Pays  0270 – Aggregated monthly Reconciliation for Smart Meters  0271 – Amendment to the SSP – provisional LSP- SSP Amendment Rules  0272 – Review of Mod 640 Validation Arrangements for when a Change of Shipper has occurred  0274 – Creation of a National Revenue Protection Service  0276 – Alternative User Pays approach to – UNC Modification Proposal Enabling the Assignment of a Partial Quantity of Registered NTS Exit (Flat) Capacity  0277 – Creation of Incentives for the Detection of Theft of Gas (Supplier Energy Theft Scheme)  0279 – Improving the availability of meter read history and asset information  0282 – Introduction of a process to manage Long Term Vacant Sites

22 Operational Update

23 Telephone Service Line No of calls Service Availability (target 95% availability) Call answering (target 90% within 30 seconds) January22,852100%92% December18, %90% November26,157100%92%

24 IAD Service Line Number of Accounts Availability (Target 97% availability during core hours) January21,000100% December21,000100% November20, %

25 Report Service Line No. of reports Performance (2 and 5 business days) January62100% December73100% November96100%

26 Portfolio Reports Reports sent in the monthPerformance standard January110 December110 November110

27 AQ Enquiries Number of AQ Enquiries processed Performance (Target process by end of second Business Day) January5,808100% December3,867100% November18,288100%

28 IAD Account Transaction Volumes Accounts Created (normal process) Bulk Password Resets NumberWithin 10 days Number Requested Completed within Month January’ %00 December’ %00 November’ %00 October’ %00 September’ %282 August’ %115 July’ %84 June’ %78 May’ %192 April’ %00 March’ %258 February’ %134187

29 IAD Account – Deletion volumes Accounts Deleted (normal process) NumberWithin 10 daysComments January247100% December234100% November93100%

30 AOB

31 IAD Password reset process  Existing online functionality allows password retrieval/reset  With effect from 1 st April 2010 change to ‘support’ process  LSO/DLSO able to direct requests via to xoserve  xoserve will provide reset details to LSO/DLSO via  Subject to acceptance we will communicate with;  Contract Managers  Authorised Signatories  Local Security Officers (LSO’s)