1. SGN S&U Update Lisa Warnock 1 st November 2013

2. 2 Agenda Data cleansing (set to dead/extinct) Shipper interaction SGN root cause measures

3. Data Cleansing Over the past 12 months SGN have monitored for cancelled jobs to ensure MPRNs are set to Extinct if a connection job is cancelled. We are also reviewing historical jobs dating back to 2006. So far we have set 1,087 MPRNs to Extinct and 378 set to Dead As an ongoing process, all No Activity reports are now reviewed by SGNs MPRN Creation team bi-monthly and cancelled jobs are set to Extinct, legitimate MPRNs are allocated to the correct pot and sites using gas are passed for investigation 3

4. Shipper Interaction SGN have been working closely with some shippers in order to monitor and resolve shipperless and unregistered sites A piece of work is being carried out together with British Gas where a total of 388 MPRNs are included Out of these 388 - 160 have been set to DE/EX, 200 are with SGN for further investigation and 28 with BG for clarification 4

5. Root causes SGN have carried out a full review of potential root causes and have implemented a couple of measures on top of the ones which are being implemented by GDNs jointly: 1.Amendment to the MPRN creation process where contact is received from the customer. Rather than asking the customer to contact a shipper for them to raise a Code 12/MNC we are raising these MPRNs ourselves and monitoring for registration 2.Post connection letters to customers at 6/9/12 months after connection date - TRIAL 5

6. Post Connection Lettering Trial Background Reports to show all MPRN’s allocated via SGN Connections siteworks completed 6 months ago. Lettering carried out for all the sites remaining unregistered 6 months after substantial completion of works. Sites/properties remaining unregistered after 9 months will be sent a reminder to register their supply unless previously informed of date when gas will be used, namely new builds, developments. Sites unregistered after 12 months would receive a final letter advising registration. After this these sites transfer to the No Activity pot, month 15 adds the site to the Legitimately Unregistered pot if no activity has been noted.

7. Lettering exercise – January 2013 Out of the 61 responses to letter 1, calls and e-mails: 43 not ready to use gas & date received for planned start 18 using gas and registered 9 month letter to be sent during October. Total MPRN’s created by SGN 1473 Letter sites, as remain unregistered July ‘13 200 Reponses to first letter 61 (30%) Desktop checks confirm registration 38 No responses, sending 9 month letter 101 Registered after 6 months 56 % of total MPRN’s now registered for Jan 90%

8. Lettering exercise – February 2013 Out of the 55 responses to letter 1, calls and e-mails: 37 not ready to use gas. 18 using gas and registered. 9 month letter to be sent during November. Total MPRN’s created by SGN 1629 Letter sites, as remain unregistered July ‘13 209 Reponses to first letter 55 (26%) Desktop checks confirm registration 33 No responses, sending 9 month letter 121 Registered after 6 months 51 % of total MPRN’s now registered for Jan 90%

9. Additional information This exercise is a preventative measure to, through time, reduce the number of new unregistered sites and increase the number of registrations <365 days This is currently a trial and not fully resourced by either SGN or Xoserve SGN will keep industry informed of progress and outcomes