Categories
OFGEM

Decision on the Supplier Licensing Review: Ongoing requirements and exit arrangements

We are reviewing our approach to supplier licensing to strengthen our regulatory regime to improve standards of financial resilience and provide better consumer protection.  These reforms are part of our move to improve customer service standards and minimise the likelihood and impact of disorderly supplier failure.

The measures we are introducing are designed to (i) promote more responsible risk management, (ii) improve governance and increase accountability, and (iii) enhance our market oversight. These changes build upon our enhanced entry requirements introduced in July 2019.

Our decision follows extensive stakeholder engagement over the last year and we have carefully considered the responses to our June 2020 statutory consultation.

The new requirements will take effect on and from 22 January 2021, with the exception of the Customer Supply Continuity Plans requirement, which will take effect on and from 18 March 2021.

We are also providing an update on the timings and process we expect to follow as we undertake the next phase of work to consider whether further, more prescriptive, cost mutualisation protections are required.

We are seeking views on the proposed content of the Financial Responsibility Principle guidance (Appendix 3 of the decision document) by 22 January 2021. Please send your response to licensing@ofgem.gov.uk.

Categories
OFGEM

Decision on Last Resort Supply Payment Claim from EDF Energy Customers Limited

EDF have given notice to us of their intention to submit a claim for a Last Resort Supply Payment. EDF is seeking to claim certain additional costs incurred in acting as Supplier of Last Resort (SoLR) to customers of the former Solarplicity Supply Limited. A SoLR may make a claim for a Last Resort Supply Payment from relevant distribution networks where we have given our consent to the amount claimed.

Following on from our consultation, this letter explains our decision to consent to EDF claiming a Last Resort Supply Payment of up to £4.2m.

Categories
OFGEM

Preparing for the end of the transition period: Statutory consultation on consequential licence modifications due to the end of the transition period

This statutory consultation sets out the modifications we propose to make as a consequence of the end of the transition period, to ensure licences are fit for purpose.

The proposed modifications set out in the accompanying documents will be made after the transition period ends. Alongside responses to this consultation, we will consider material developments in the terms of the UK’s future relationship with the EU after the transition period ends before issuing our final modification direction.

Please note, we have kept the annex numbering consistent with that in our January 2019 consultation and no further updates to Annex 5 have been identified. It is therefore not included below.

Responses to this statutory consultation should be submitted on or before Thursday 24 December 2020.

Categories
OFGEM

Feed-in Tariff (FIT) levelisation report- July to September 2020

[unable to retrieve full-text content]This report shows the total FIT payments made by FIT licensees for the quarter 1 July to 30 September 2020.
Categories
OFGEM

Consultation on our assessment of IFA, BritNed and Nemo Link’s pilot project and interim period cost recovery submissions under the Capacity Allocation and Congestion Management (CACM) Regulation

In August 2019, we decided on the approach to cost sharing and cost recovery under the Commission Regulation (EU) 2015/1222 on Capacity Allocation and Congestion Management (the “CACM Regulation”). That decision allowed for the recovery of efficiently incurred, reasonable and proportionate development and operational costs through Transmission Network Use of System (“TNUoS”) payments, for both the CACM pilot project period and the interim period. We subsequently received submissions of pilot and interim period costs from IFA, BritNed and Nemo Link.

This consultation sets out our minded-to position on the amounts for recovery through TNUoS charges following our assessment of IFA, BritNed and Nemo Link’s submissions of pilot and interim period costs, under the CACM Regulation. IFA and BritNed’s submissions include costs which were incurred during both periods, whereas Nemo Link’s submission covers costs incurred during the interim period. We are seeking views on our minded to position ahead of reaching a final decision in January 2021. We welcome responses on our minded-to position from any interested parties.

If you wish to respond to this consultation, please send your views to Mertcan.Agir@ofgem.gov.uk by 23 December 2020.

Categories
OFGEM

Consultation on updating the allowance for the Shetland Cross Subsidy in the default tariff cap

This letter outlines our proposed changes to the price cap model set out in Annex 4 to standard licence condition (SLC) 28AD of the electricity licence. This comes as a result of a government policy change to how capital expenditure in Shetland is cross subsidised among consumers. If we decide to make these changes, they will come into force on 1 April 2021.

If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 4 January 2021.

Categories
OFGEM

Consultation on changes to ‘Annex 3 – Methodology for determining the Network Cost Allowance’ of the Default Tariff Cap

This letter outlines our proposed changes to the models set out in Annex 3 to standard licence condition (SLC) 28AD of the electricity and gas supply licences. This comes as a result of data inputs previously used to determine the network cost allowance changing in structure or availability. This annex calculates the network cost allowance of the default tariff cap. If we decide to make these changes, they will come into force on 1 April 2021.

If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 4 January 2021.

Categories
OFGEM

Consultation on changes to methodology used to determine the Feed-in Tariffs allowance in the default tariff cap

This letter outlines our proposal for calculating the Feed-in Tariff (FIT) allowance from cap period 6 onwards as set out in Annex 4 to standard licence condition (SLC) 28AD of the electricity and gas supply licence.  

We have proposed to pass through FIT scheme costs on a lagged basis from cap period 6 onwards.

If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 4 January 2021.

Categories
OFGEM

Consultation: Extending protections for domestic customers who may have prepayment meters installed under warrant (Electricity and Gas Supply Standard Licence Condition 28B)

In January 2018, Standard Licence Conditions (Condition 28B of both the gas and electricity supply licences) came into force to protect consumers who may have a prepayment meter installed under warrant in terms of the Rights of Entry (Gas and Electricity Boards) 1954 (as amended).

These protections are due to expire on 31 December 2020 in line with the original smart meter rollout. This consultation document sets out our proposal to extend these protections in line with the revised four-year smart meter rollout framework to 30 June 2025.

Categories
OFGEM

Authority decision to ‘send back’ BSC modification proposal P390 ‘Allowing extensions to ELEXON’s business and activities, subject to additional conditions’

[unable to retrieve full-text content]We have decided to send back modification to the Balancing and Settlement Code (BSC).