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Proposed Agreement for Unregistered Sites Identification & Administration

This agreement outlines the identification and management of unregistered gas sites. It details transporter obligations, service provision, cost treatment, and next steps. It aims to recover gas value, investigate consumption, and secure supply contracts. The pilot involves BGT providing services on behalf of NGD, with a focus on revenue neutrality and operational efficiency. Ofgem oversight ensures compliance and viability. Feedback is sought from National Grid and Ofgem for further improvement.

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Proposed Agreement for Unregistered Sites Identification & Administration

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  1. Proposed Agreement For Identification And Administration Of Unregistered Sites Chris Warner Network Code Manager

  2. Unregistered Sites • An “Unregistered Site” is: • new Meter Point Reference Number in Transporters’ Supply Point Register (SPR) • no User Registration (or prior registration) in SPR • legitimate status where no gas is flowing (usually ‘siteworks’ in process) • illegitimate status where gas is being consumed i.e. potential that gas has been illegally taken whilst in the course of conveyance • no supply contract between supplier and consumer (NB: Ofgem has the view that a Supply Contract is not ‘valid’ if there is no User Registration in SPR) • socialised risk (energy reconciled via RbD) • Shipperless Sites are not within scope of this agreement

  3. Transporter Obligations • Transporters Licence Condition 7 obligations • to investigate where it appears gas is taken whilst it is ‘in the course of conveyance’ • to use reasonable endeavours to recover the value of the gas taken in such circumstances (Gas Act Sch 2B provides legal ability to do so) • ‘ in the course of conveyance’ • where a supply contract (or a deemed supply contract) is in place, any point upstream of the ECV • where there is no supply contract (or deemed supply contract) is in place, at any point

  4. NGD / BGT Agreement (Pilot) – BGT to Provide Service on behalf of NGD • information from existing Xoserve Unregistered Sites (“Orphaned”) reporting • for ‘shipper activity’ MPRNs, relevant shippers have confirmed ‘no interest’ or not responded to request • undertake investigation (LC7) on behalf of NGD to • establish whether gas is being consumed • establish if a supply contract is in place • BGT to comply with requirements in respect of treatment of vulnerable customers • if gas is being consumed and there is no supply contract in place • use reasonable endeavours (LC7) on behalf of NGD to recover the value of the gas costs (NB: no investigation costs) • notify consumer that it must enter into a supply contract with a supplier • possible future service to undertake disconnection on behalf of NGD where instructed to do so by NGD

  5. BGT Service – Treatment of Cost and Revenues • Value of gas costs recovered by BGT on behalf of NGD are returned to NGD • NGD pays BGT for investigation and cost recovery services • BGT charges required to be reasonable and cost reflective • NGD treats revenue recovered and investigation and costs recovery charges in accordance with Licence Condition 7(3) Scheme • Changes made to Licence “Transportation Revenue” to maintain revenue neutrality

  6. BGT Service – Status • Ofgem is aware of proposal and following various challenges dialogue has taken place to ensure arrangement is acceptable • NGD and BGT intends to commence pilot as soon as possible • bilateral arrangements to be finalised • operational processes/interfaces to be concluded

  7. BGT Service – Next Steps • Costs and revenues to be monitored on an ongoing basis • Pilot likely to commence Q1 2011 and last 12 months • At this point review to be conducted and decision taken on whether to extend duration of arrangement • Potential success criteria • volume of consequential User registrations • proportion of invoiced charges recovered • extent to which costs recovered meet service charge • residual theft detection

  8. BGT Service – Next Steps • Comments? • To National Grid • To Ofgem

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