1. Shipperless & Unregistered Workgroup Wednesday 29 th January 2014

2. Agenda  Introduction  Previous Actions  Statistical Information  Overall Industry Volumes  MPRN Creation Query  Withdrawn Sites with Live MPRNs with No Meter Attached  Proposed Solution for Mod410a and Mod424  End User Letter Exercise Update  GDNs Updates  A.O.B.

3. Previous Actions

4. Outstanding Actions Ref.Date RaisedDescriptionActionStatus 15001/07/13 All Shippers to provide contact details for Networks to use to provide pre-notifications of GSR site visits or end user letters. Update – 01/11/13 Some Shippers have provided contact details as requested but many are yet to respond. All Shippers Ongoing 15101/07/13 All Networks to provide contact details for Shippers to use to obtain further information on GSR site visits. Update – 01/11/13 Some Networks have provided contact details as requested but some are yet to respond. All Networks Ongoing 15601/11/13 The details of the plan to address the existing S&U population need to be finalized. All Networks and Xoserve Open

5. Statistical Information

6. Statistical Information January 2014 Unregistered SitesDec-13Jan-14Description Total With Shippers Remaining Shipper Activity1062333230 Shipper specific activity which suggests intention to confirm i.e., Confirmation rejection, Meter Asset update to the C&D store, ConQuest and CMS contacts to create the MPRN. Orphaned TOTAL14,81913,4701,67311,797 Following a response of no further interest, or where no response is received. They also include MPRN's where a service has been completed and in some instances a meter already installed. With Meter5,9036,128 Shipperless Sites - Shipper (PTS) GSR1,2281,192524668 MPRN's which have previously been confirmed but the meter is now removed. Information provided (via DN) suggests that either the existing meter is still on site or a new meter has been fitted. GSS are identified when a YES is found in the Live Supply Point? column. GSS424406 Shipperless Sites - Industry (SSP) 4,891 2,2282,663 No Activity8718150 MPRN's created on UK Link where no shipper activity has ever been recorded and remain unconfirmed. Legitimately Unregistered38,29038,759 MPRN's which represent: Vacant sites / No Gas meter but live service / Service still in planning stage. Meter Point created less than 12 months 33,91632,040 Unconfirmed MPRN's with a creation date <12 months. If not confirmed they will gradually feed into the above 'pots'. TOTAL21,91520,6014,42816,173

7. MPRN Creation Query

8. Is there the potential for Shippers to engage with Networks before requesting the creation of an MPRN? It has been found that in certain circumstances, Shippers are requesting the creation of MPRNs for Found Meters which are later found to be landlord check meters. Shippers are not able to get an adjustment through an ECO Contact as they requested the creation of the MPRN.

9. Withdrawn Sites with Live MPRNs with no Meter Attached

10. Background Xoserve and its predecessors have run processes for monitoring and resolving Shipperless and Unregistered Sites since before 2000. In 2010 a cross-industry group was established which started reviewing the root causes. This group, in co-operation with Ofgem, also set the definitions of Shipperless and Unregistered sites which has shaped the reporting and the “pots” that we work with today.

11. Shipperless Sites The definition of a Shipperless site is set out in the ToR/Root Cause summary document approved by industry and Ofgem- http://www.gasgovernance.co.uk/sites/default/files/Root%20Ca use%20Summary%20-%20Approved%20V.1.0.pdf http://www.gasgovernance.co.uk/sites/default/files/Root%20Ca use%20Summary%20-%20Approved%20V.1.0.pdf “Shipperless Meter Point – A Supply Point that has no current registered Shipper but previously had one, and for which it has been established that gas is being consumed through a meter.”

12. With the focus on Shipperless and Unregistered sites, we would like to take this opportunity to remind the industry that there is a population of Withdrawn sites which, as per the agreed definition, are not included within the current reporting. These are likely to be sites where, following a meter removal by a supplier, a GS(I&U)R visit is not required. These are sites which are considered safe i.e. PE pipe which terminates in an outside meter box (as per approved policy). There are around 350,000 such sites. Withdrawn sites with no connected meter

13. Proposed Solution for Mod410a and Mod424

14. Introduction Mod410a – Responsibility for gas off-taken at Unregistered Sites following New Network Connections. –Transporters are responsible for, and should investigate and resolve Unregistered Sites following a new network connection. –Where the Transporter becomes aware of a contracted Supplier to an Unregistered Site, they will inform the relevant Shipper so that they may register the site. –Where it is found that a Shipper is responsible for the installation of a meter on an Unconfirmed MPRN, the Shipper is responsible and accountable for any gas off-taken prior to Shipper confirmation.

15. Introduction Mod424 – Re-establishment of Supply Meter Points – prospective measures to address shipperless sites. –Where a Transporter indentifies that gas is being consumed at a Supply Point from which a Shipper has “withdrawn”, and it is found that the original meter is still in situ, the relevant Shipper is required to reconfirm the Supply Point and re-attach the asset on the Sites and Meters Database. The Shipper will be liable for relevant charges. –If the relevant Shipper does not re-confirm the site and attach the asset, the Transporter with confirm the site, on behalf of the relevant Shipper and re-attach the asset. The Shipper will be liable for relevant charges.

16. Solution The preferred solution to both Modifications is to include the process on Xoserve’s query management system – CMS. Two new Contact types will be introduced to CMS: –GSR (Mod 424) and –MUS (Mod410a) The Shipperless and Unregistered Sites Process will be managed through CMS. Shippers and Networks will need to interface with Xoserve via CMS. Some off-line reports will still be required for the Shipperless Sites element of the process.

17. Xoserve’s GSR Process will still be triggered by a notification from a GDN that a meter has been found during the GDN’s GSR investigations. GDNs will submit the notifications to Xoserve either on the new CMS EFT Template; or directly logged on by the Network via the CMS Logging Screen. CMS will use data provided by the Network and data sourced from UK-Link to sort the Contacts into “Outcomes”. The outcomes will be progressed accordingly. New GSR Process

18. GDNs Obtain GSR Extract from DN-Link GDNs Conduct Investigations and Take Necessary Actions GDNs Log GSR Contacts onto CMS CMS is used to Determine One of the Following Outcomes The site has a registered system user, but no asset attached on UK-Link. The meter found by the GDN is different to the original meter purportedly removed by the withdrawn shipper. The contact will remain open and undergo ongoing monitoring for a meter attachment. SCN A Live MPRN does not exist for the meter found by the GDN. A new MPRN will be created and re-routed through the GSR validation. This may find its way to the same route as PTS or SSP. FOM The meter found by the GDN is different to the original meter purportedly removed by the withdrawn shipper. These will be reported out to the industry SSP Xoserve was unable to process the GSR Contact due to insufficient data provided, or Xoserve investigations showed that the meter found by the GDN exists on another MPRN in the vicinity. The contact will be sent to the Network for clarification. RTN The site has a registered system user, but no asset attached on UK-Link. The meter found by the GDN is the original meter purportedly removed by the withdrawn shipper. This will follow the MOD424 route. SCO The meter found by the GDN is the original meter purportedly removed by the withdrawn shipper. This will follow the MOD424 route. PTS The MPRN is confirmed and has a meter attached on UK-Link. No further action is required. The contact will be closed. NAR

19. New Unregistered Sites Process The Manage Unregistered Sites (MUS) Process will run every month. Xoserve will run reports to identify MPRNs that have never had a confirmation on Sites and Meters. The dataset will be imported into CMS and each unregistered MPRN will create an MUS Contact. CMS will use data sourced from Xoserve Systems to sort into “Pots”, and determine which records are MOD410a applicable.

20. New Unregistered Sites Process The records identified as MOD410a applicable will be processed through to resolution which could result in the relevant MPRN being set to EX, confirmed by a Shipper, or confirmed by Xoserve on behalf of a Shipper. Back-billing can only occur once an asset is attached on UK-Link. The records that are not identified as MOD410a applicable will undergo further processing involving system validations and input from industry participants including UIPs and MAMs. Any further records identified as MOD410a applicable will join the set already identified. Any records that are not MOD410a applicable will be monitored and reported to the industry on a monthly basis. Industry participants will be requested to conduct checks and take necessary actions to address any erroneous records.

21. Going forward….. Proposed Implementation for the CMS solution is 3rd Quarter 2014. Further communications are imminent. Relevant training will be delivered before the implementation date. Any Questions?

22. End User Letter Exercise Update

23. Introduction In response to Ofgem’s open letter to the Gas Distribution Networks regarding their concern over the existing population of Unregistered Sites, the GDN’s produced a plan which aims to reduce this population. In the plan narrative, the GDNs stated that in order to address the issue, a concerted effort by all industry participants was required. The plan set out a series of activities spanning 10 months, starting in November 2013 and culminating in August 2014.

24. In November 2013, Xoserve collated records of all Shipperless and Unregistered Sites that had been identified on the Sites and Meters Database. This dataset was “ring-fenced” to form the base data for the exercise. The dataset was categorised into the usual reporting “pots” that are issued to industry participants on a monthly basis. The pots were issued to Shippers, UIPs, and Networks with the request for each party to investigate the records within the dataset and to report their findings back to Xoserve by the end of December. Actions Carried Out To Date

25. A reminder was issued to Shippers and UIPs in mid December, and Xoserve’s Shipper Engagement team contacted Shippers on an individual basis to discuss the project and to urge them to reply. By the end of December 2013, 5 UIPs and 8 Shippers had replied. We received subsequent replies after the deadline and we were able to include these in our analysis. Actions Carried Out To Date

26. In the meantime, Xoserve had engaged in an exercise to investigate possible data cleansing methods that could be used to clean the data before embarking on the End User Letter component of the GDN Plan which is scheduled to commence in February 2014. Xoserve explored different approaches to data cleansing. –System Updates –Plot Addresses –Group Contracts –Duplicates –Large AQs –Age Analysis Actions Carried Out To Date

27. System Updates It is generally agreed that the end result of a resolved Shipperless or Unregistered Site can be evidenced with a Meter Point Status of DE / EX; or a Live Confirmation. Xoserve refreshed the Meter Point Status and the Confirmation Status for all records in the dataset. If the Meter Point Status was found to be EX or DE, or if the Confirmation Status was found to be CO or LI, the record was considered to be resolved and was removed from the dataset.

28. Plot Addresses It was acknowledged that it would not be effective to issue letters to sites where only a plot address was available. Sites in this category were segregated. SSP – 17 plots from 4756 PTS – 4 plots from 1573 Orphaned – 943 plots from 15033 No Activity – 95 plots from 1459 Shipper Activity – 2 plots from 243 The No Activity pot was selected as a test sample and efforts were made to determine if a corresponding site with a correct postal address existed on UK-Link for the plot address. It was found that for the majority of the sites, it was not possible to find an alternative address. However, for a small number, potential alternative sites were identified. On average, 10 minutes were required to investigate each site irrespective of the outcome.

29. Group Contracts Again, the No Activity pot was selected as a sample to investigate the effectiveness of this method. The pot was examined to determine if any sites may possibly be part of a Group Contract, i.e. be part of a company that may hold a number of sites which may be supplied under the same supply contract. 12 sites were identified which may fit this criteria. They were sites such as supermarkets, chain restaurants, hotels and banks. The details were provided to the relevant Shipper and we are awaiting confirmation on a small number of sites. On average, 10 minutes were required to investigate each site irrespective of the outcome.

30. Duplicates It was suggested that it may be possible to determine if a duplicate MPRN existed if a meter serial number was present for the Unregistered MPRN. By using the MSN to search on UK-Link, all MPRNs with the same MSN could be found. This method was relatively quick and easy (Approx 2 min per MPRN) however the results were disappointing and inconclusive. A more sophisticated approach was suggested using an existing database which used the Postcode for the site and “Fuzzy Matching”. A sample of 1000 MPRNs were selected from the Orphaned pot. The sample was run through the database, and the output was examined. The database identified 91 potential duplicates but on examination of the 91, it was found that very few of them were actual duplicates.

31. Large AQs It was believed that it would be easier to find information on sites with large AQs. Some in-depth individual system investigation was carried out into a sample of sites with the highest AQs from the Orphaned pot. Using the following systems, it was possible to gather information which would inform on a decision on the required action: –UK-Link –C&D Store –CMS –Royal Mail Website –Google We found that the evidence was not always strong enough to make a decision. Further investigation such as an enquiry to the relevant shipper, a letter to the site or a site visit would be required to be certain. Where appropriate, enquiries were submitted to Shippers who subsequently investigated and responded to Xoserve. In some cases, it was possible to take action to resolve the erroneous record. This in-depth investigation was more time consuming (Approx 60 mins per MPRN) regardless of the outcome, and required the involvement of third parties.

32. Age Analysis We examined the age profile of the S&U population to determine if it was possible to conduct some bulk clearance of erroneous records. It was found that records dated back over 10 years. However, it was decided that a bulk approach was too blunt and may lead to a high level of errors. Age Analysis of Orphaned Pot (15,034)

33. Proposed Xoserve Data Cleansing We found that data cleansing options available to Xoserve were time consuming and ineffective. Additional information available to Shippers and Networks made their activities more effective in comparison. Xoserve will use available systems to remove sites that have been confirmed, and sites with a Meter Point Status of DE or EX. Xoserve will remove all sites with plot addresses and endeavour to find alternative postal addresses. Xoserve will endeavour to find duplicate MPRNs and remove them from the dataset. (This is only possible where a MSN is evident). Where a duplicate is established, the erroneous MPRN will be set to EX.

34. Base Data Set Refreshed Data Set Nov-13Jan-14 Shipper Activity243213 Orphaned TOTAL15,03412,154 With Meter6,2664,824 Shipperless Sites - Shipper (PTS) GSR1,143810 GSS4300 Shipperless Sites - Industry (SSP) 4,7562,532 No Activity1,5341,212 Legitimately Unregistered37,48738,759 Meter Point created less than 12 months 35,05832,040 Total Shipperless Sites5,8993,342 Total Unregistered Sites16,81113,579 TOTAL22,71016,921

35. Final Shipperless Datasets SSPPTSTotal Starting Base Data475615736329 Plots17421 Shipper Removals19013382239 Live Confirmations243390633 DE / EX633194 To Be Lettered25328103342

36. Current Unregistered Datasets OrphanedNo Activity Shipper Activity Total Starting Base Data15033145924316735 Plots9439521040 Shipper Removals136900 Live Confirmations41215123586 DE / EX15515161 To Be Lettered12154121221313579

37. Next Steps Xoserve will make the necessary amendments to the base data and create the datasets for producing End User Letters. The feedback from the Shippers, UIPs and GDNs, and data cleansing conducted by Xoserve will be taken into consideration.

38. Next Steps Shipperless Sites The first tranche of letters will be issued to addresses in the Shipperless Sites pot; a total of 3,342 after data cleansing. The aim is to issue Letter 1 to relevant Shipperless Sites on 10/02/14 and then to issue Letter 2 where required on 24/02/14. (Dates subject to Innerworkings) The information from the End User Letter responses will be used to advise what action is required to resolve the Shipperless record. This could be passed to a Shipper associated with a Supplier named by the End User. Any remaining records that require further investigation will be passed to the GDNs. The GDNs will conduct their investigations from April to June 2014.

39. Next Steps Unregistered Sites For the purpose of the lettering process, the Unregistered Sites population will be made up of Orphaned, Shipper Activity and No Activity. Due to the size of the Unregistered Sites population (16,811 in total), the letters will be issued in three tranches. –Letter 1 for the first tranche of 6,000 will be issued on 01/04/14. –Letter 1 for the second tranche of 6,000 will be issued on 01/05/14. –Letter 1 for the third tranche of the remaining Unregistered Sites will be issued on 03/06/14. Where necessary, –For each Tranche, Letter 2 will be issued two weeks after the issue of Letter 1. The information from the End User Letter responses will be used to advise what action is required to resolve the Shipperless record. This could be passed to a Shipper associated with a Supplier named by the End User. Any remaining records that require further investigation will be passed to the GDNs. The GDNs will conclude their investigations in October 2014.

40. Proposed Timeline

43. GDN Updates

44. Energy Networks Association Root cause solution for unregistered sites / MPRN creation David Mitchell 29 th January 2014

45. Root Cause Solutions – MAMCoP Change 45 Energy Networks Association It was identified that an amendment to MAMCoP was needed to facilitate with the process of preventing gas from being illegally taken. Change order MAM/13/002 “Ensuring Appropriate Supply Contracts Are In Place Before Installing a Gas Meter” has now been approved by the MAMCoP Change Board and will be implemented on the 28 th February 2014. Anyone in breach of the above change after the implementation date will be subject to a potential investigation by Lloyds Register.

46. Root Cause Solutions – Customer Communication Leaflet 46 Energy Networks Association The joint GDN customer communications leaflet is now with the ENA to finalise now that the content of the leaflet has been agreed upon. This leaflet will be left with customers following the installation of a new service. The leaflet provides details on how to establish if a supplier is in place for a property: Explains what an MPRN is and where is can be found Where names of suppliers can be found Provides useful contact numbers The leaflet clearly states that the use of gas without a supply contract is illegal.

47. Root Cause Solutions – MPRN Allocation Document 47 Energy Networks Association A new MPRN Allocation document is being produced. The document will outline the MPRN creation process and will cover areas such a requesting MPRNs. It will explain what to do with MPRNs if the project does not go ahead and the action needed to prevent duplicate MPRN’s and MPRN remaining at a status of Live. The document will outline when and where a new MPRN is required.

48. AOB  Any other business?  Thanks for your attendance your contribution & support  Have a safe journey home!