January » 2019 »

Retail Energy Code Company (RECCo) Budget Consultation

Ofgem has released a consultation on the REC 19-20 budget consultation. REC V1 is expected to come into effect 1st February 2019. Ofgem will issue accession forms to relevant parties at that time, which are to be returned by 28th February 2019 or as soon as possible after. 

The REC Company will serve as the corporate vehicle for ensuring the proper, effective and efficient implementation and ongoing management of the REC.  During the implementation of the Switching Programme, the RECCo costs will fall into two main categories: 

•            Administrative arrangements to support the establishment and operation of the REC and of RECCo itself; and 

•            Services to support the delivery of the Switching Programme.

Once the new switching arrangements are implemented and version 2.0 of the REC takes effect, which is due to be mid-2021, the RECCo will also be responsible for the payment of other REC governed services, including those of the CSS. The RECCo will recover such costs from funding parties in accordance with the relevant charging methodology. 

As the REC is not yet in effect and in the absence of a REC Manager, Ofgem is consulting on the 2019/20 budget and have forecasted costs for the following two years, although these are expected to be subject to an annual consultation carried out in accordance with the REC, once designated. 

Ofgem will summarise responses to this consultation and submit them as part of a budget paper for approval at the inaugural meeting of the RECCo board, which is expected to be in late February 2019.

The closing date for responses to this budget consultation is 15th February 2019.  Any comments should be submitted by email to: switchingprogramme@ofgem.gov.uk.


GDEG Update: January 2019

GDEG met on 10th January 2019 and discussed the following MRA Issue Forms (MIFs) and GDAA Issues (GIFs).

GIF38 – Providers no longer part of Green Deal

GDEG discussed the problem Suppliers are having where they are continuing to collect monies from their customers but are unable to pass that funds on to the Remittance Processor or Provider because the companies have been struck off, dissolved and no replacement to take on the obligation has taken place. GDEG noted that this is a standing agenda item for the GDAA Panel as BEIS need to investigate what the legal position is for each plan and whether any SoS instruction could be given.

GIF 0039 – GDAA Monthly Reporting on Cat E obligations

GDEG noted that the recent reporting for a party highlighted areas which the calculations set up were in error. The group were advised that the initial investigation showed that the report looked at the first payment frequency received and not accounts if that changes or that they may be different. Initial amendments which have been made to the report has cleared some erroneous reporting numbers down but there still some scenario’s such as when a D0325 Data Flow was not received by the Supplier because of a Change of Supplier occurring. GDEG agreed further investigating was required to clarify the measures being reported.

Pending CoS and Cancellation of Plans

GDEG considered a potential issue which had been identified in respect of early closure of a Green Deal Plan because the plan has been paid in full and there is a pending Change of Supplier and, as a result, the Pending New Supplier did not get advised to not start collecting the Green Deal Funds. GDEG noted that there are potentially a few options to resolve the matter, for example a change could be made to GDOP08 (GD Provider updates to the Green Del Charge Details) to add in an extra step before the plan is completed and carry out a lookup to ECOES to see if a Change of Supplier is occurring and send updates to both the Current and Pending Supplier. Another alternative could be amending the GDAA obligation to send the D0325 Data Flow to Suppliers on the Supplier Start Date rather than in advanced. GDEG agreed that a new GIF should be raised in order to discuss and agree the solution options via the formal governance process.

GDAA Incident Management Procedure

GDEG highlighted their concerns and requested an update on the current position for it. The group were advised that the work is continuing to be carried out around the policies. GDEG noted that this area is still of concern and a potential risk and what would happen if the industry were to be questioned about this. The group noted that due to the way the GDAA is written that there was a real need to understand what the scope and responsibilities are for parties. GDEG were advised that the GDAA Panel are still working to move these areas along. GDEG noted that the MRA and GDAA are still separate codes and therefore may need to comply with each until the codes are subsumed into the REC.

GDCC Access Agreements

GDEG were advised that the updated Access Agreement was now available to be used and that all parties will be receiving new agreements for their companies to sign and return in due course.

IREG Update January 2019

IREG met on 9th January 2019 and discussed the following MRA Issue Forms (MIFs) and Electricity Central Online Enquiry Service (ECOES) changes.

MIF219 – Full review of the Working Practice Product Set (WPPS)

IREG received an update of the progress of the review. IREG considered whether to continue to progress on this MIF. It noted that there were still Working Practices (WPs) that could be removed from the WPPS due to redundancy or being covered elsewhere. As such, it agreed:

• the drafted Change Proposals (CPs) to remove 4 Pre-payment Working Practices as they were now redundant due to being for Token Meters could progress to MDB

• To continue the review process of the WPPS.

MIF281 – Crossed Meters

A strawman MAP was presented to IREG for the resolution of Crossed Meters. IREG noted that the strawman MAP should be based on the extension of the current WP145 (Identification and Resolution of Crossed Meters) that was discussed at the December meeting. IREG agreed that a new MAP solely based upon the WP145 extension should be drafted for the February meeting with consultation with industry participants and the proposer being key.

MIF282 – ECOES Change Process

IREG were presented with the updated process Map and recommended a further tweak to the process diagram. IREG noted the amendment to the Funding section of the IREG Terms of Reference (ToR) and highlighted two minor amendments that were required and then the updated ToR would be taken to MRA Development Board (MDB) for approval.

MIF283 – ECOES to Distribution Third Party Systems

IREG were presented with the drafted ECOES URS changes and agreed the draft subject to a minor change to the wording. IREG were advised that the Technical Service the Technical Service Provider (TSP) had been contacted for the costs of implementation but due to the festive period had not received a response. Discussions on the development and delivery time-lines and IREG agreed to wait until the ECOES change is implemented in February before further work is conducted. This is because the February implementation may amend the requirements of ECOES once the processes are used for real. These additional requirements could then be incorporated. IREG agreed that this MIF should be discussed at the April IREG meeting as a post implementation review and look to capture any additional needs link to the MIF.

Safe Guarding Customer Working Group

IREG received a verbal update from the previous Safe Guarding Customer Working Group (SGCWG). IREG noted the planned release date for the work conducted is April 2020 and that any changes to DTC Data Flows or Priority Service codes would need to be in place for February 2020 ahead of the go live date. The group had been advised that a six-month lead time would be required for any system changes therefore any Change Proposals would need to be raised sooner rather than later.

IREG were informed that previous guidance document should have been placed on the ENA website however noted would be needed to be refreshed based any an agreed solution. Definitions would also need to be expanded for both all parties and need to introduce more guidance for customers with specific needs.

IREG noted that there were several considerations that need to be agreed including; what the Governance arrangements are and how to manage Consent. It was advised that there may be obligations placed upon Suppliers to share information with Agents. IREG agreed for the SGCWG to remain on the agenda for forthcoming meetings for a watching brief.

ECOES2 Migration Lessons Learned

The Chair advised IREG that the MRASCo Executive Committee (MEC) had requested the thoughts and opinions of IREG on the ECOES2 migration, IREG were invited to comment and these were captured for review by MEC. IREG advised that this question should be posed to all Master Administration Users (MAUs) to gain a complete picture of the industries thoughts regarding the migration process.

Next meeting

The next meeting is scheduled for Wednesday 13th February 2019.