1. Potential reforms to the CoS meter reading process for smart gas meters Setting the open letter in context Rachel Hay 16/01/14

2. Our longer-term objective is for a fast, reliable and cost effective change of supplier process that will facilitate competition & build consumer confidence The Change of Supplier project

3. 3 Letter asked for: - UNC Panel and SPAA Executive Committee to set up joint work group - Joint work group to consider any relevant changes to the COS meter read process to improve its efficiency in the context of smart meters and to support consistent and co-ordinated switching and billing for smart meter customers switching gas and/or electricity (including dual-fuel switches) - Joint work group to maintain a watching brief on the Issue 53 group, sense-checking the developing electricity reforms against gas processes and any developing gas reforms - Joint work group to provide Ofgem with an interim report in the summer which includes the implications of implementing proposed smart electricity meter read arrangements in gas Open letter on potential reforms to the change of supplier meter read process for smart gas meters Parallel ‘Issue 53 group’ has now been set up to consider smart electricity meter read reform First issue 53 meeting took place yesterday, next scheduled for w/c 3 rd Feb. Issue 53 group asked to provide support to colleagues in gas with the aim of developing consistency across fuels. Published by Ofgem on 17 December Product of discussions on meter read reform held through the Change of Supplier Expert Group (COSEG), a COSEG sub-group on metering, and through other industry discussions Progress report from Issue 53 Group expected in early March - should help inform gas discussions/report Issue 53 Group asked to review and consider specific policy reforms proposed by COSEG, or develop and progress alternative solutions, were they to lead to a better outcome for consumers.

4. 4 Smart gas and electricity market structures

5. Yes No Yes 5 Must agents be appointed to process read? Need to transfer Meter Technical Details to process read? Need for transfer of consumption history to process read? Need for information flows to keep agents up to date on progression of CoS? Gas Electricity Dependencies between parties for CoS meter read in absence of further reform Old supplier dependent on new supplier for meter read?

6. Where possible, a party should not be reliant on competitors for the data it requires to meet its own and its customers’ needs. We also consider that the new supplier should be able to get the information it needs to complete the CoS without needing to appoint, and rely upon, agents to do so. Where dependencies cannot be avoided, there should be effective measures in place to ensure the CoS process progresses as efficiently as possible and any potential detrimental impact on competition is minimised. We consider that it is important to align outcomes for customers such that they benefit from efficient and co-ordinated switching and billing across fuels. 6 Intended outcomes of reforms

7. Smart electricity reform proposal Delivering the intended outcomes Old and new supplier to poll the meter for closing and opening reads New suppliers required to reconfigure meter on CoS + + Range of additional considerations also important to make reform package function effectively Electricity reform proposal Could parallel reforms help deliver these outcomes in gas? Yes? Unclear if necessary given MTDs held centrally and configurations less complex – but could doing so could support consistency and circumvent data quality concerns with centrally held MTDs? Will need to be considered as solutions emerge

8. No 8 Must agents be appointed to process read? Need to transfer MTDs to process read? Need for transfer of consumption history to process read? Need for information flows to keep agents up to date on progression of CoS? Gas Electricity Anticipated impact on dependencies if suggested reforms implemented Old supplier dependent on new supplier for meter read?

9. 9 We have asked a joint work group to consider: any relevant changes to the COS meter read process to improve its efficiency in the context of smart meters e.g. By replicating the electricity reforms in gas, could the old shipper’s dependency on the new shipper for the CoS meter read be removed? e.g. Are there any other reforms which could improve efficiency? relevant changes to support co-ordinated switching and billing for smart meter customers changing gas and/or electricity suppliers (including dual-fuel switches) e.g. Would replicating the electricity reforms in gas be the most effective way of supporting co-ordinated switching and billing across fuels? Some potential questions for a joint work group to consider