AQUILA NETWORKS PLC A Midlands Electricity Company United Kingdom

1. AQUILA NETWORKS PLCA Midlands Electricity Company United Kingdom Angela Mann Revenue Protection Services

2. Since 1990 - • April 1990 - Customers using 1 MW and above • April 1994 - Customers with a demand of 100 kW to 1 MW - Competition in provision of metering services • September 1998 to May 1999 - Customers with up to annual usage 12,000 kWh

3. Supplier Switching New Suppliers 36% Old Local Suppliers 64%

4. Supplier Market Share DNO’S

5. Distribution Network Operators Scottish & Southern - Scottish Hydro - Southern Electric ScottishPower - Scottish Power - Manweb United Utilities - Norweb Western Power Distribution - SWEB - SWALEC Innogy - Yorkshire - Northern Powergen - East Midlands Aquila Networks - MEB London Group - Eastern - London - Seeboard

6. Metering Service Companies Siemens Metering - Powergen Metering - Eastern Metering - Datum - Quantum Scottish & Southern - Scottish Hydro - Southern Metering Scottish Power - Scottish Power - Manweb United Utilities - Norweb - Welsh Water - BGT (Dual Fuel - DC) Invensys - IMServ - Meterpoint - Norweb DC Lowribeck - an independent DC Accuread - BGT DC OnStream - British Gas MOP preparing for electricity Innogy - Yorkshire Metering - Northern Metering ECS Metering - London Metering & Data Services - SWEB Data Collection Western Power - SWEB Meter Operation Distribution - Hyder Metering (SWALEC) Metering Services - MEB Metering Ltd

7. And the Supplier has a choice!

8. And the lights go out!

9. What’s the problem, Mrs O’Reilly?

10. And the lights stay out! !

11. And the cavalry arrive?

12. So Who is Responsible for Theft? Supplier Detect and prevent theft Distributor Inform supplier Agents of Supplier (MAP, MAM, DC & others) Inform supplier

13. Who provides the service? • Contracted to the Meter Operator 10 • Retained in the Distribution Network Operation 3 • Contracted to the Supplier 1

14. And who exactly loses? Energy Costs Distribution Costs Supply Costs Suppliers Margin + + +

15. Aquila Networks plc 1990 - Public Limited Company 1996 - GPU & Cinergy = Avon Energy Holdings 1999 - Supply business sold to npower - GPU buy Cinergy’s share of Avon Energy 2000 - GPU merge with First Energy 2002 - Aquila buy 79.9% interest - First Energy retain ownership of 20.1% 2003 - Up for sale!

16. Facts & Figures • 13,000 square kilometres • 2,343,000 million customers • North - 30% • Central - 50% • South - 20% • Domestic - 2,148,200 • Commercial - 170,900 • Industrial - 23,900 • 24,202 km of overhead lines • 35,936 km of underground cables • 47,000 substations

17. Revenue Protection in Aquila Pre 1987 - bad debt 1987 - company wide initiative - 7 regions, 7 managers - reporting to central point

18. Today’s Team Revenue Protection Services Keeping customers safe Recoup costs and losses Licence obligations and electricity regulations

19. Changes • The lack of customer respect for seals would lead one to believe that seals function as tags to indicate where access can be obtained. • The companies must realise that they now have to deal with customers who have acquired considerable electrical knowledge, electrical connections are no longer a mystery to them.

20. Changes • It has been found that in practically all cases, a customer, if he finds he can interfere with the meter’s registrations, uses two to three times as much energy as he would under normal circumstances • A great many persons who tamper with the meter or service, do not feel that interfering with the registration of the meter is dishonest

21. Changes • The effectiveness of seals will depend upon the policy of the utility in dealing with customers who insist upon breaking them. • The question of maintaining public relations is also involved and would appear to be over-emphasised. • The amount of losses is inversely proportional to the amount of activity on the part of the company towards the elimination of tampering.

22. Changes?