1. Private Sewer Transfer David Walter Managing Director, Dyno Rod Drainage and Sewerage Service provision in the future

2. Dyno Rod has been a leading force in the UK drainage market for 45 years UK’s most recognised drainage company Reputation for delivering excellent customer service Transfer will change our business − Responsibility to ensure change delivers genuine consumer benefit − Opportunities to win additional business Over 900 drainage engineers

3. The backing of British Gas provides competitive advantage as we plan for the transfer Size and scale of British Gas provides –Investment strength –Security and stability –Additional operational capability Exciting Water Company Partnership Agenda –Water and energy efficiency links –Shared service delivery cultures

4. The transfer has the potential to create new consumer benefits and new problems Reduction in disputes − Cost of shared sewers repairs − Repair to lateral drains on neighbouring property Potential new problems − Slower response times − Poor customer service These need to be avoided Dyno has leading customer satisfaction scores

5. In order to unlock consumer benefit Dyno Rod propose the following principles are introduced 1.Clearly Defined Lots 2.Redefinition of Laterals 3.Timing & Phasing 4.Customer Led SLA’s

6. Transfer Principle 1: Clearly Defined Lots – providing drainage contractors fair access to bid Work transferred should be fairly accessible to Domestic Drainage companies The industry should be encouraged not to ‘bundle’ PS&L job lots into broader tender lots Main Frame Contractors who wish to sub contract should ensure similar fair access to Domestic Drains companies Drainage and Water Companies will work together post transfer

7. Transfer Principle 2: Redefinition of Laterals – the current definition is too broad ‘House to Shared’ Laterals − Transfer solves existing problem − And will drive customer benefit ‘House to Mains’ Laterals − Transfer doesn’t solve an existing issue − Customer is only user of drain section − Therefore ownership of issue is clear − Proposed solution could introduce new confusion requiring detailed on site investigation − Little benefit to transferring

8. Transfer Principle 3: Timings & Phasing – Current timeline introduces risk Overnight transfer in Oct 2011 will be challenging for Householders, Water Companies and Drainage Providers Potential phasing options −Post winter −Region by region −Private Sewers then Laterals Optimising the sequencing and phasing will ensure customers get the best outcome

9. Transfer Principle 4: Customer Led SLA’s to ensure efficient consumer response Customers expect a c4 hour call out −This must be maintained in order to avoid degradation of customer service Additional SLA’s are required −Training, H&S management and customer satisfaction Inclusion of customer satisfaction metrics in the SIM (Service Incentive Mechanism) would be beneficial 4 Hour Emergency Response 24/7

10. Summary: Ensure the transfer delivers for customers The PS&L transfer will change the market We will adapt and will help to shape the future We are focused on winning new business post transfer The industry must focus on delivering the potential consumer benefits resulting from the transfer −The 4 Principles outlined will help to unlock consumer benefit Engage in the debate and help shape the transfer

11. Thank You