Single National Provider for the Detection & Investigation of the Illegal Use of Gas UNC Review Proposal October 2009 Anne Jackson, Scottish & Southern Energy

Principles Single provider, either nationally or by area, for the provision of services for the investigation & detection of the illegal use gas. Appointed by competitive tender. Provider will provide prescribed agreed base level service for all. Provider will have performance incentives leading to provider determined theft detection methods (Proactive). Provider will provide additional services as negotiated with individual parties.

Principles continued Contractual parties: Suppliers (all mprns) and Transporters (including iGTs) through standard base contract. All parties required to sign up to base contract. Parties to provide information to Provider as and when required. Provider will manage all aspects including customer contact.

Base Services Investigate all leads re gas theft. Make appropriate reports to the Transporter. Assess levels of gas consumption not recorded. Making claims via theft schemes. Allocation of joint claims which straddle periods involving more than one supplier. Prosecutions (optional for vulnerable customers). Reporting.

Optional services (Provider selected: proactive) (Supplier / Transporter selected: contractual) National ‘suspected theft’ reporting phone line. Spot checks and visits. Consumption analyses. Stolen meter inventory. Tracking persistent offenders. Incentives offered for leads. Pursuing debt.

Advantages Switching suppliers will not prevent identification of theft. Best practice identified and adopted. Rights of entry to all properties (acting as agent). Pre supply competition circumstances simulated. Standardise treatment of all suspects. Reduced confidentiality and Data Protection issues as all parties using same agent. Optimise effort to results ratio particularly for small parties.

Disadvantages Governance could be an issue. Possible complexity in administering costs. Possible competition issues.