Industry Shipperless &Unregistered Working Group Thursday 4 th March 10.30am at xoserve

1. CR & Connections & Registration Industry Shipperless &Unregistered Working GroupThursday 4th March 10.30amat xoserve

2. Agenda • Introduction: (30 minutes) (Alison Jennings & Mark Woodward) • Previous minutes (MW) • Straw Man Comments • Route Cause: (1 hour 30 minutes) • Root cause topics identified so far. • Formulate a plan to tackle root cause. • Statistical Information: (30 minutes) (Mark Woodward) • Overall industry position with unregistered and shipperless meter points • Analysis of latest movement to the population from the reports sent out in late November for October/November 2008 meter point creations

3. Questions and Comments Captured at the Last Shipperless And Unregistered Workgroup Meeting Regarding the Shipperless and Unregistered Sites Process “Strawman” as Presented by David Watson. 1. The process set out in the Straw Man should only apply to MPRNs for which xoserve has received significant assurance that no shipper supplies gas to the site. 2. Do Networks have a legal right to disconnect Shipperless and Unregistered Sites where no illegal connection is involved? If not, what would be the end result of this process? 3. There is a potential for The Gas Act 1986 – Schedule 2b - Deemed Contract to have an influence on this. 4. How will this process be funded? Would shipper liabilities be appropriate if it is found that an end user has a contract with a shipper when a Network engineer attends to disconnect? 5. Will this process apply to existing Shipperless and Unregistered Population, or will it only apply to newly classified sites? 6. What are the governance options for this process? Will it be included in the UNC? 7. What criteria will be used to determine vulnerable customers, and what will be the end result for these?

4. Route cause

5. Route Causes Identified So Far

6. Route Causes Identified So Far

7. Route Causes Identified So Far • Meter fitted not confirmed - MAM information on meters fitted - C&D store on shipper provided meter information • Knowledge (all parties) - Better understanding of process and the knock on implications to other parties • Communication

8. Fast Track Analysis • We compiled a report listing all Fast Track Queries received over a 2 month • period. We carried out some analysis with the aim of identifying why these • were not raised via the UIP route. Our Findings were as follows: Volume Percentage • UIP Creation rejected and not returned 93 21.7% • UIP Creation never raised 270 63% • UIP Creation received around the same time 49 11.8% • Address or quality issue 15 3.5%

9. UIP M Number Creation process Service Cancellation Request for Service Details provided of M Number used for service Service laid and tagged Information returned on cancelled service Reinvestigated Reinvestigated Service cancelled System validation checks performed System validation checks performed Meter point details on UK Link set to EX Finish Start Service Requester Start Service planned & M Number requested for creation on UK Link Finish Details provided of M Number created on UK Link Batch of MPRN’s requested Utility Infrastructure provider (UIP Rejected Rejected Accepted Accepted xoserve

10. Shipper M Number Creation process 3. System validation checks performed Finish Start 7. M Number details provided date meter work planned 1. Meter installation required End Consumer 2. M Number requested for creation on UK Link via FOM or MNC 5. Details provided of M Number created on UK Link 6. MPRN provided to MAM meter work planned 4. Reinvestigated by Shipper Shipper Rejected Accepted xoserve

11. Unregistered and Shipperless Process No Confirmation Within 2 Months Contact UIP, Network or MAM to verify service laid and possible meter fitted Service Not Yet Completed Unregistered Reports – Produced Bi-Monthly. Contains MPRs that have not been confirmed 12 Months after their created date Meter Point set to EX No Activity Report Service Installed Service Cancelled Shipper Activity Report. Consists of: Confirmation Rejections Conquest MNo Requests UK-Link Meter Update Rejection Service Request Legitimately Unregistered. Consists of: Vacant Sites No Gas MOD517 Service Still in Planning Shipperless Report – Produced Bi-monthly. Consists of: GSRs and TOGs Orphaned Report Confirmation Issued To All Shippers Issued To Specific Shippers Shipper start Activity xoserve start No Activity

12. Statistical Information

13. Overall Industry unregistered and Shipperless Sites meter points

14. Overall Industry unregistered and Shipperless Sites meter points • Next reports to be produced in late March • Shipper Activity - Responses to January Reports: - 3 shipper short codes - 42 sites - Some excellent information: - YES – Intend to Confirm – 8 NO Live service – 30 Alternative MPRN – 3 No contract – 1 • Orphaned sites – Currently holding: - - 146 No contract with End Consumer - 301 Intend to confirm

15. Overall Industry unregistered and Shipperless Sites meter points • Shipperless Sites – Responses to January Reports: - 6 shipper short codes - 70 sites • No Activity sites - Anticipate significant reductions over the next few months - Responses from some UIP’s Between 20 – 35% cancelled jobs Between 5 – 15% deferred jobs

16. Analysis of latest movement to the population from the reports sent out in late November for October/November 2008