1. Shipperless & Unregistered Workgroup Friday 1 st November 2013

2. Agenda  Introduction  Previous actions  Statistical Information  Overall industry volumes  Proposed new layout  End User Letter Trial Update  Responses to Ofgem's Open Letter to Gas Distribution Networks on Tackling Unregistered Sites  MPRNs Set to DE in Error  GDN Update  A.O.B.

3. Previous Actions

4. Ref.Date RaisedDescriptionActionStatus 14701/07/13 Continued from Action 143. Xoserve to provide the shippers with the respective updates on the MPRNs reportedly set to DE in error. XoserveComplete 14801/07/13 Xoserve to issue the communication templates to be used in the End User Letter trial, to the group members. XoserveComplete 14901/07/13 Xoserve to publish a timeline for the EU Letter trialXoserveClosed 15001/07/13 All Shippers to provide contact details for Networks to use to provide pre-notifications of GSR site visits or end user letters. All ShippersOngoing 15101/07/13 All Networks to provide contact details for Shippers to use to obtain further information on GSR site visits. All NetworksOngoing Outstanding Actions

5. Ref.Date RaisedDescriptionActionStatus 15201/07/13 Xoserve to provide the updates from the Networks on MPRNs set to DE in error, to the relevant shippers. XoserveOngoing 15301/07/13 Shippers to provide examples to Xoserve, of MPRNs that have not been set to DE following service removal by the Network. All ShippersOngoing 15401/07/13 Xoserve to forward examples to the relevant Networks, of MPRNs that have not been set to DE following service removal by the Network. XoserveOngoing 15501/07/13 Networks to investigate examples of MPRNs that have not been set to DE following service removal by the Network. All NetworksOngoing 15601/07/13 Xoserve to ensure the following administrative actions are conducted:  provide the agenda ahead of future meetings  publish dates of future meetings on the Joint Office website  include the date that Actions were raised in the meeting minutes XoserveComplete

6. Statistical Information

7. Statistical Information September 2013

8. Proposed New Format for Presenting S&U Figures

9. End User Letter Trial

10. Scope Investigation of 1000 MPRNs (with meters) from the Orphaned population, using Xoserve systems and other available information sources. Objectives To test the effectiveness of an End User Letter Process To promote the confirmation of MPRNs as necessary To ensure that MPRNs are set to EX or DE as necessary

11. End User Letter Trial Timeline 23/07/2013 Comms 1 Dispatched 21/08/2013 Communication 2 Dispatched 06/08/2013 Deadline for Comms 1 Responses 07/08/2013 Details for Comms 2 sent for Dispatch 04/09/2013 Deadline for Comms 2 Responses 01/11/2013 Findings reported to S&U Workgroup 25/10/2013 Xoserve Analysis completed 15/03/2013 Xoserve Present Proposal for EU Trial 27/03/2013 Xoserve Issues dataset to Shippers and Networks for analysis 27/06//2013 Xoserve Issues dataset for preparation of Communication 1 12/08//2013 Xoserve Issues dataset for preparation of Comms 2 04/10/2013 Xoserve Issues EU responses to relevant Shippers and Networks for analysis From start (proposal) to finish (presentation of results), the trial took 7 ½ months. 25/09/2013 Interim Meeting – Presented Findings from Comms 1

12. Actions Undertaken Xoserve selected a random sample of 1000 Orphaned Sites with meters and provided the whole sample to Shippers and Networks Shippers and Networks reviewed the sample and advised if appropriate and some requested sites to be removed as already under investigation Xoserve conducted desktop checks on the remaining sample Xoserve issued the results of desktop analysis to Networks Networks conducted additional investigations and responded to Xoserve First letters were issued to remaining sites in the sample

13. Actions Undertaken Xoserve fielded the responses from End Users Xoserve collated and analyzed response to first letters and passed information to Shippers and Networks as appropriate. Xoserve issued second letter to sites where deemed necessary Xoserve continued to field responses from End Users Xoserve analyzed responses to second letters and passed information to Shippers and Networks as appropriate. Xoserve checked Confirmation and Meter Point Status of entire sample

14. Analysis Removal ReasonNumber of Sites Percentage of Total Sample Duplicate Records272.70% DE, EX, CA60.60% Confirmed (No Action Taken)171.70% Plot Addresses343.40% Removed at the request of Shippers15815.80% Removed at the request of Networks30.30% Total24524.50% Removals from Original Sample These removals meant that 755 sites were issued with the first letter.

15. Analysis Requested Removals from Original Sample Removal Requests Number of Sites Confirmed % Confirmed Set to DE / EX % Set to DE Removed at the request of Shippers1587346.20%95.70% Removed at the request of Networks3133.33%00.00% Total1617445.96%95.59% The records removed at the request of Shippers and Networks have been monitored for Confirmations and Meter Point Status updates.

16. Analysis ResponseNumberPercentage Letter 1 (755 issued)146*19.34% Letter 2 (618 issued)135*21.84% No Response (755)47462.78% Total755 End User Response Rates * Include replies from EU and returns from Royal Mail

17. Analysis End User Response Methods Letter 2 evoked response where letter 1 had failed. Response Method Number of Responses to Letter 1 Percentage Percentage of Sum of EU Responses Number of Responses to Letter 2 Percentage Percentage of Sum of EU Responses End User Response Card233.05% 5.70% 00.00% 14.56% Email40.53%447.12% Telephone Call 162.12%457.28% Letter00.00%10.16% Royal Mail10313.64% 457.28% No Response60980.66% 48378.16% Total755 618

18. Analysis Total Sites issued with Letters Number of Sites Confirmed % Confirmed Set to DE/EX % Set to DE/EX 75510213.51%121.59% Records Included in EU Letter Dataset 13.51% of sites that were lettered were confirmed during the trial period. (not necessarily as a result of the letters)

19. Analysis Xoserve made an assessment of the information obtained through the responses received. Outcomes Potential OutcomesResolved? Number of Records PercentageTotalsTotal Percentages ConfirmedYes10213.51% 20727.42% Set to DEYes30.40% Set to EXYes91.19% To Be Set to EXYes314.11% Legitimately UnregisteredYes628.21% Passed to ShipperNo324.24% 54872.58% No Conclusion – Further Investigation Required No51668.34% Total 755

20. Age Analysis of Orphaned Sites with Meter All Orphaned with Meters Sample of 1000755 Lettered Sites Pre 20005.00%8.40%9.14% 2000 - 200423.64%13.50%15.23% 2005 - 200946.73%51.80%50.07% 2010 - 201224.63%26.30%25.56%

21. Analysis Comparison of Records Included in EU Letter Dataset to All Orphaned with Meter Pot Number of Sites Confirmed% ConfirmedSet to DE/EX% Set to DE/EX Requested Removed Sites1617445.96%9 (* +5)5.59% Sites issued with Letters75510213.51%121.59% Total Sample100017617.60%262.60% Total Orphaned with Meter Pot65264316.60%771.18% Total Orphaned with Meter Pot minus 1000 Sample 55262554.61%510.92% * 5 were removed as they had been set to DE in BAU before the letters were issued.

22. A Case Study Dave Ackers

23. Findings from the End User Letter Trial Active participation of Networks and Shippers is crucial 27.42% of the sample were resolved End Users can not be relied upon to respond to communications. (62.8% non-response rate) and can take up to 3 months to reply! A second communication to End Users yielded higher end-user response rates than the first letter We experienced issues with the postal aspect of the trial which meant: –Deliveries were not as prompt as expected –There were some unexpected delivery failures –We failed to receive the non-deliveries as quickly as expected –Non-deliveries were sometimes returned with conflicting reasons. Active participation of Networks and Shippers is crucial!!!

24. Gas Distribution Networks’ Response to Ofgem's Open Letter on Tackling Unregistered Sites

25. Energy Networks Association Root cause solution for unregistered sites / MPRN creation David Mitchell 1 st November 2013

26. Root Cause Solutions – MPRN Batches 26 Energy Networks Association Xoserve are now issuing smaller batches of MRPNs in an effort to influence the behaviour of parties who allocate new MPRNs to sites. Batches are relevant to the number of new connections that the requester makes. A maximum of 5000 MPRNs will be issued at any one time. New batches are only issued once 85% of the previous batch have been used.

27. Root Cause Solutions – MAMCoP Change 27 Energy Networks Association It was identified that an amendment to MAMCoP was needed to facilitate with the process of preventing unregistered sites. Change order MAM/13/002 has been raised titled “Ensuring appropriate Supply Contracts Are In Place Before installing a gas meter. ” The change has been discussed at length at the MAMCoP board during the course of 2013 due to the change having a material effect on the operations of MAMs. The proposed change would appear to have universal support. A vote on the change is planned this month

28. Root Cause Solutions – Customer Communication Leaflet 28 Energy Networks Association GDNs have agreed on the format of a customer communications leaflet to be left following the installation of a new service. The leaflet provides details on how to establish if a supplier is in place for a property: Explains what an MPRN is and where is can be found Where names of suppliers can be found Provides useful contact numbers The leaflet clearly states that the use of gas without a supply contract is illegal.

29. Root Cause Solutions – MPRN Allocation Document 29 Energy Networks Association A new MPRN Allocation document is being produced. The document will outline the MPRN creation process and will cover areas such a requesting MPRNs. It will explain what to do with MPRNs if the project does not go ahead and the action needed to prevent duplicate MPRN’s and MPRN remaining at a status of Live. The document will outline when and where a new MPRN is required. The document is due to be released in early January 2014.

30. MPRNs Set to DE in Error Deborah Watson Gazprom Energy

31. MPRN Issues MPR creation scenarios “Network” not setting MPRs to dead “Network” using 9999999999 on isolation correspondence Unregistered “found meter” reported by “Network” – wrong mpr noted Found supplies and MPR creations Networks to contact registered shippers when a request to isolate is received

32. MPR creation scenarios

33. Scenario A Existing MPRN should be used Service laid at same point on the main (Alteration of service, Service replacement & Capacity increase)

34. Scenario B Old service disconnected and new service fitted at a different location in the gas main Existing MPRN should be used and old service isolated

35. Scenario C Old service disconnected and new service fitted at different main. Existing MPRN should be used and old service isolated ECV Removed Service New Service House Gas Main 1 Gas Main 2

36. Scenario D Additional service fitted at different points in same gas main. New MPRN should be created

37. Scenario E 3 New MPRNs should be created Further discussion needed regarding isolation of old service House converted to flats old service removed and additional services fitted at different points in the same gas main

38. Scenario F 3 new MPRNs should be created Address amendment would be required for original MPRN to reflect ‘flat 1’. How should this be actioned? House converted to flats and existing service changed to flat 1 and additional services fitted at different points in the same gas main.

39. Scenrio G New MPRN should be created New service laid at any point on the main (New Development – Could be a plot address)

40. GDN Updates

41. AOB  Any other business?  Thanks for your attendance your contribution & support  Have a safe journey home!