Executive Committee
PAPEG Progress Report
1. Purpose
The purpose of this paper is to provide a report outlining the progress made under the MRA
Prepayment Allocation Process project.
2. Background
Subsequent to the Authority’s decision to uphold the appeal against the MRA Agreed
Procedure (MAP) CP 0130 - The Treatment of Unallocated Prepayment Revenue, the MRA
Executive Committee (MEC) agreed the formation and Terms of Reference for the
Prepayment Allocation Process Expert Group (PAPEG).
The objective of the PAPEG was to review the prepayment allocation process and identify its
weaknesses, to determine the most appropriate solution for redistribution for the money from
the unallocated pot, and to provide supporting evidence and analysis to explain how this
solution will facilitate the requirements and objectives of the MRA.
3. Progress
PAPEG’s first meeting took place on the 11th April 2013 followed by six meetings, two of
which were workshops targeting specific areas requiring detailed investigation.
In the course of its meetings, PAPEG identified three aspects for consideration:

Process: PAPEG agreed that a more detailed end to end review of the allocation
process is required;

Metrics: PAPEG requested for the available data from Unallocated Transaction
Reports (UTRs) and from ECOES to be interrogated in order to gain understanding of
the underlying issues involved, e.g. how many transactions take place; and

Redistribution: PAPEG discussed what would the most feasible way to equitably
redistribute the unallocated money.
3.1
Process
Following PAPEG’s first meeting on the 11th April 2013, a subgroup of PAPEG, the Process
Modelling group was formed to review the current Prepayment Allocation Process. The
workgroup met on the 7th May 2013 and agreed that:


The current allocation process works effectively when there is a data match; and
The process fails when the data in the X-REF database and ECOES cannot be
matched.
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The subgroup agreed that the best course of action would be to test the targeted matching
procedure on a sample of data from the Unallocated Transaction Reports (UTRs) to identify if
this would improve the overall matching capability in ECOES, and to determine how much
money could be allocated, should the procedure become a permanent feature in the ECOES
functionality.
The results of the targeted matching sample test were delivered by the ECOES service
provider in September 2013 and presented to PAPEG_13_1002, after an extensive analysis
on the provided data and accompanying eight matching routines (“algorithms”).
Subsequently, PAPEG decided that the matching algorithms should become a permanent
feature in the matching procedure in ECOES.
PAPEG_13_1122 agreed, however, that before there is a change made to the MRA Agreed
Procedure (MAP) 15 – ECOES, outlining the functionality of ECOES, it would be advisable to
run a one-off exercise of the Targeted Matching procedure using selected algorithms for a
period of one month. PAPEG selected algorithms 1, 2, 3 and 8 for the trial, as most of the
unallocated transactions are affected by these algorithms (the full list of Algorithms in
Appendix B). The new algorithms would be hard coded into the matching procedure with a
view of becoming a permanent component of ECOES matching process. The pilot would
allow PAPEG to fully assess the benefits of the new algorithms before the procedure
becomes part of the enduring process. It would also release the bulk of historic transactions
affected by the algorithms.
PAPEG’s recommendations for the Targeted Matching trial are to be presented to
MEC_13_1217, and subject to MEC approval, the trial will run in Q1 of 2014 followed by the
review by PAPEG.
3.2
Metrics
PAPEG agreed that in order to identify the most viable solution for the distribution of the
unallocated transactions and for the allocation process improvement, a number of available
sources would need to be interrogated, i.e. UTRs, ECOES data etc. This would ensure that
there is enough supporting evidence for the group’s decision(s).
The section below outlines the metrics that have been obtained at PAPEG’s request.
3.2.1
D0312 reports
As part of PAPEG’s discussions on the weaknesses of the current allocation process, it has
been identified that the information contained within a D0312 flow (Notification of Meter
Information to ECOES) plays a vital role in finding a data match for the outstanding
transactions.
Subsequently, the following reports were requested on D0312s in order to determine their
impact on the allocation process:



The number of rejected D0312 flows sent for key meters with the reason for rejection;
The number of updates via the D0312 screen; and
The number of automated/manual resubmissions for D0312 flows.
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The results of the analysis on the D0312 flows were reviewed and discussed by PAPEG in
the course of two meetings on 19th July 2013 and 2nd October 2013. PAPEG noted that just
over 50% of the rejected D0312 flows with key meter technical details get resubmitted and
that the majority of D0312 rejections are due to the sending MOp not being the appointed
MOP at the time of sending the D0312.
PAPEG agreed that there may be merit in looking at the process of sending and resubmitting
the D0312s in more detail. PAPEG proposed the formation of a workgroup with
representation from Suppliers and Meter Operators (MOPs) in order to discuss the current
D0312 submission process and the validation of this flow in ECOES. The date of the D0312
workshop will be arranged in early 2014.
3.2.2
Age profile of transactions
In order to identify the most appropriate methodology for redistributing the money from the
unallocated pot, PAPEG requested a number of reports with the following information:






The History of unallocated transactions;
The age profile of Unallocated transactions;
The age profile of the transactions on the Multiple Supplier Report;
An age profile analysis with a “Line in the sand” breakdown;
Key meters with outstanding transaction amounts over £5,000; and
Market share.
Section 3.3 of the paper outlines how these reports were utilised.
3.2.3
Algorithms
PAPEG_13_1122 agreed that there would be some merit in further investigating the
algorithms that would not be used in the Targeted Matching trial.
Table 1 outlines the remaining Algorithms alongside the recommended actions:
Algorithm Number Algorithm Name
Action
Algorithm 0
Current matching algorithm
Further analysis into the reasons that
these transactions do not become
allocated when a single match is found.
Results of the analysis to be presented
at the next PAPEG (date yet to be
agreed).
Algorithm 4
Missing zero after Board
Code
ECOES service provider to interrogate
the ECOES data in order to retrieve a
list of all the affected meters. Gemserv
to present the list at the next PAPEG
meeting (date yet to be agreed).
Algorithm 5
Look for adjacent matching
Meter IDs
ECOES service provider to interrogate
the ECOES data in order to retrieve a
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list of all the affected meters. Further
analysis by Gemserv to understand the
transactions and meters that are
affected by these algorithms. The
results to be presented at the next
PAPEG (date yet to be agreed).
Algorithm 6
Consider rejected Meter ID
updates
The issue of D0312 rejections to be
looked at by the D0312 workshop.
Algorithm 7
Ignore Meter Type
ECOES service provider to extract
meters that meet Algorithm 0 and have
meter type other than K. Gemserv to
analyze the data and present the
results at the next PAPEG (date yet to
be agreed).
3.3
Redistribution
PAPEG recommended a formation of a Distributing Unallocated Transactions subgroup
tasked with walking through the options for allocation of the money from the unallocated
money pot. The workgroup met on the 24th May 2013 and agreed that:

A ”line in the sand” for smartcard and token transactions should be 1st January 2013;
and

A “line in the sand” of five years for key meter unallocated transactions that would
align with the Misdirected Payments (MDP) backstop date. This would set a deadline
of June 2008. Note that the backstop date moves forward each year automatically
and it is expected that the “line in the sand” would follow suit.
PAPEG reviewed all the analysis on the smartcard and token transactions done to date
(outlined in section 3.2.2 of this paper) and decided to proceed with the “line in the sand” of
the 1st January 2013 for allocation of smartcard and token meters.
Consequently, PAPEG requested for a CP to be drafted for the distribution of the smartcard
and token unallocated transactions.
PAPEG was presented with the draft CP for the changes to MAP 14 encompassing a
process to allocate the obsolete technologies of Smartcards and Tokens on the 22nd
November 2013. PAPEG agreed that the proposed drafting is suitable and, after making
some minor amendments, the CP should be raised and issued to December MRA
Development Board (MDB) for a vote on the Impact Assessment (IA) window for this change.
Gemserv have amended the draft CP in line with PAPEG’s recommendations and the CP will
be presented to MDB_13_1219.
4. Next steps
The following activities have been planned for the next reporting period:
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
Make the suggested amendments to the MAP14 CP drafting and distribute to PAPEG
for approval in December 2013
 Issue the MAP 14 CP to MDB_13_1219 for an IA vote
 Draft a MEC paper with a recommendation for the Targeted Matching trial
 Analyze the reports supplied by the ECOES service provider at PAPEG request:
 report on meters affected by algorithm 0 (disconnected, non prepayment, date
issues)
 report on meters affected by algorithm 4
 report on meters affected by algorithm 5
 report on meters affected by algorithm 7
The dates of the next PAPEG meeting and the D0312 workshop are yet to be confirmed.
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