1. Theft of Gas RbD fund reallocation model Gareth Evans

2. 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

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. Contact Details  Happy to answer questions : Waters Wye Associates: Gareth Evans - 01473 822503 - 07500 964447 gareth@waterswye.co.uk www.waterswye.co.uk