AQUILA NETWORKS PLC A Midlands Electricity Company United

AQUILA NETWORKS PLC A Midlands Electricity Company United Kingdom Angela Mann Revenue Protection Services

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

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

DNO’S Supplier Market Share 4

Distribution Network Operators Scottish & Southern - Scottish Hydro - Southern Electric Scottish. Power - 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 5

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

And the Supplier has a choice! 7

And the lights go out! 8

What’s the problem, Mrs O’Reilly? 9

And the lights stay out! ! 10

And the cavalry arrive? 11

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

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

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

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! 15

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 16

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

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

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. 19

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 20

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. 21

Changes? 22