On 10 January 2020 the Authority published a notice of proposal to issue a final order on Daligas Limited (“Daligas”) in accordance with section 29 (1) and (2) of the Gas Act 1986.
The Authority had been in discussions with Daligas regarding the requirement to become a DCC User (as defined in standard licence condition 42.11 of the gas supply licence).
Standard licence condition 42.8 of the gas supply licence requires licensees to become DCC Users by 25 November 2017.
The particular behaviour of concern giving rise to the proposal to make a Final Order was that Daligas failed to become a DCC User by the deadline and remains non-compliant. By failing to be a DCC User in accordance with the licence condition, its existing customers with smart meters are suffering harm because they do not have smart meter functionality. There will also be harm to customers who will lose their smart functionality on switching to Daligas. Representations or objections with respect to the proposed final order were invited to be made to the Authority by 10am 3 February 2020.
Daligas made written representations to the Authority on 28 January 2020. The Authority has considered the representations received from Daligas in the context of the consultation undertaken to section 29(1) of the GA86. The Authority notes the representations and the new proposed timetable for when Daligas anticipates being a DCC User. The Authority is not confident that Daligas will become a DCC User as quickly without a final order in place.
Therefore, on 6 March 2020, the Authority made the final order, pursuant to section 28 (1) and (2) of the Gas Act 1986, requiring Daligas:
- to become a DCC User by no later than 31 March 2020
- not to acquire any new customers from the date that the Final Order is made until Daligas can demonstrate that it is a DCC User.
As soon as Daligas becomes a DCC User, the sales ban will be lifted and the Authority will begin the process of revoking the final order.