MEC Update: August 2018

Please find the update from the MEC meeting held on 21st August 2018:

Following the confirmation of MEC representatives for the period from 1st September 2018, Adam
Carden (SSE) was nominated and elected as the new Chair of MEC and Chairman of the MRASCo
Board. Adam replaces Alex Travell who has stepped down as a Supplier MEC representative and
Chair of MEC after a period of eight years. The new MEC representatives are Adam Carden, Kevin
Woollard (Supplier representatives), Martin Hewitt (Distribution Business representative), Nigel Perdue
(BSC Agent representative), Lorna Mallon, Alex Travell (alternate Supplier representatives), and
Tracey Pitcher (alternate Distribution Business representative). The alternate BSC Agent
representative is to be confirmed.

Ofgem advised MEC that the left-to-right plan for the Switching Programme had been agreed
internally and was being prepared for distribution to industry, with a target of end August 2018.
Ofgem noted that 37 responses had been received to its consultation on the Retail Energy
Code (REC); key issues identified during consultation focused on governance over operational
risks. Ofgem confirmed it had initiated a project led by PwC to look at consequential impacts
of the REC on industry systems and codes, and meetings between PwC and all Code
Administrators were being arranged.

MEC received an update with respect to the activity being undertaken by the Faster Switching
Expert Group (FSEG). FSEG had met twice and considered strawmen scenarios, with drafting
of Change Proposals advancing. MEC accepted that an extra meeting of MDB may be
necessitated to accelerate the progress of relevant Change Proposals through the change
process. There was some suggestion that the work under FSEG may be impacted by an
Ofgem position to bring workgroup activity in house, following discussion with industry code
administrators. However, no decision has been formalised yet, and MEC is keen to maintain
the momentum within FSEG. MEC is proposing to write to all Contract Managers to encourage
participation in the ongoing Distribution Business address data cleanse exercise, following
feedback that some parties are not fully engaging in the process. One party considered that
two-way cooperation was required, as some Distribution Business communication to Suppliers
who were engaging had not been sufficient.

MEC agreed the accession applications of five new Supplier parties: Perle Energy, Simcoe
Energy, Tillicum Energy, Willamette Energy, and Zythos Energy.

MEC received an update from the Secure Communications Work Group (SCWG), which had
met for the first time on 31st July 2018. MEC was asked to receive and agree the drafted ToR,
which it did subject to a small number of corrections and clarifications. The next meeting of the
SCWG would be held on 13th September 2018 and would review the data exchanged between
parties for all processes under the MRA and SPAA, to review whether the communication
methods mandated under code are appropriately and proportionately secure, prior to the
identification of standardised solutions of data transfer.

MEC received an update on the work being undertaken to establish an Erroneous Transfers
Performance Assurance Board (ETPAB) under the MRA and SPAA. MEC received a
proposed ToR but raised some concerns about how the proposed measures and powers
being provided to the ETPAB were underpinned within the MRA and SPAA. MEC has asked
Gemserv and ElectraLink to provide accelerated feedback on points raised to allow MEC and
the SPAA EC to make decisions on the progress of this group ahead of the next meetings.

MEC agreed that Iresa Limited had become a Defaulting party under MRA Clause 36,
following the appointment of administrators. MEC has withdrawn the rights of Iresa Limited to
vote under the MRA and receive MPAS Services.

MEC was advised that Gemserv is developing a new MRASCo Newsletter – to be published to
all MRA parties and key stakeholders every other month. The Newsletter is intended to
become a key channel of communication, including news on key MRASCo projects, change
release information, system developments and meeting updates. The first newsletter will be
published on 26th September 2018.