Enstroga Ltd: Final Order

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On 10 January 2020 the Authority published a notice of proposal to issue a final order on Enstroga Ltd (“Enstroga”) in accordance with section 26 (1) and (2) of the Electricity Act 1989 and section 29 (1) and (2) of the Gas Act 1986.

The Authority had been in discussions with Enstroga regarding the requirement to become a DCC User (as defined in standard licence conditions 42.11 and 48.11 of the gas and electricity supply licences respectively). 

Standard licence conditions 42.8 of the gas supply licence and 48.8 of the electricity supply licence require 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 Enstroga 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 Enstroga. Representations or objections with respect to the proposed final order were invited to be made to the Authority by 10am 3 February 2020.

Enstroga made written representations to the Authority on 3 February 2020. The Authority has considered the representations received from Enstroga in the context of the consultation undertaken pursuant to section 26(1) of the EA89 and section 29(1) of the GA86. Enstroga has set out the steps it is taking to remedy the ongoing non-compliance. While the Authority notes that Enstroga anticipates becoming a DCC User in April 2020, the Authority remains of the opinion that it is requisite in all circumstances of this case to make the final order because the Authority is not confident that Enstroga will remain focused on completion of the DCC User Entry Process to become a DCC User as quickly without a final order being in place.

Therefore, on 6 March 2020, the Authority made the final order, pursuant to section 25 (1) and (2) of the Electricity Act 1989 and section 28 (1) and (2) of the Gas Act 1986, requiring Enstroga:

  • to become a DCC User by no later than 31 March 2020
  • not to acquire any new customers or add any customer accounts by upgrading to dual fuel from the date that the Final Order is made until Enstroga can demonstrate that it is a DCC User. 

As soon as Enstroga becomes a DCC User, the sales ban will be lifted and the Authority will begin the process of revoking the final order.