1. THEFT OF GAS TEAM

2. THEFT OF GAS TEAM PO Box 6803, 31 Homer Road, Solihull, B91 3LT Fax : 0121 623 2786 Free Phone : 0500 447 667 Seamus Rogers Account Assistant Kay Fatania Account Assistant George Wood Account Assistant Mark Smith Account Administrator Mark Woodward Account Officer Alison Jennings Service Delivery Manager

3. The Gas Industry Legal Framework  Gas Act 1986 (as amended by 1995 Gas Act)  Gas Transporters Licence  Gas Shippers Licence  Gas Suppliers Licence  Uniform Network Code

4. Communication Theft of gas reported Emergency Bureau advised Bureau raises ToG contact via ConQuest xoserve ToG team receive contact Site visit results received by Bureau & ToG contact updated xoserve ToG team receive contact Bureau raises emergency job & ToG contact Despatch contact to Shipper for investigation xoserve ToG team investigate Is there a confirmed Shipper? Is there a safety risk? yes no

5. Administrative Procedures of the Theft of Gas Team  Record details of theft  Give advice on TOG issues  Co-ordinate investigation of the theft  Calculate value of gas stolen & associated charges (on behalf of GT)  Initiate financial procedures  Reasonable Endeavours claims

6. Objectives of the Theft of Gas Team  Ensure compliance with xoserve’s ASA obligations  Initiate financial procedures for recovery  Produce TOG procedures  Raise awareness of TOG  Provide input into discussions with Ofgem, Shippers, Suppliers etc

7. Xoserve / Supplier Communication Timeline xoserve request the following of Shippers to resolve reports of TOG:  Investigation findings  Assessed kWh stolen  Period of theft Timeline introduced to raise profile and encourage response rates.  D+2Advise supplier via ConQuest of valid TOG allegation -Supplier has 80 days to respond.  D+70 Shipper chase report sent  D+80 Close case & 80 day closure report sent to Ofgem.

8. Reasonable Endeavours  It was required by GT licence condition 7  Applies to Shippers in pursuit of gas taken illegally  It comprises of 7 actions by the supplier necessary to ensure payment of allowances.  Completion of these actions and confirmation to xoserve of failure to recover some or all of the charges results in payment by xoserve to Shippers on behalf of the Networks.  It is deemed to be a fair basis for all parties to implement their licence obligations.  Aims to remove the disincentive to pursue the illegal taking of gas.  Record keeping, audit trails and reporting.