Keeping an eye on compliance

In response to the rising wholesale energy prices, Ofgem published a letter on 29 October setting out the steps that it is taking to protect the short- and long-term interests of consumers.

In addition to its intention to consult this month on the current price cap methodology, Ofgem set out its expectation that suppliers must continue to comply with their licence conditions. Among other things, this includes:

  • Ensuring that domestic customer’s ability to pay is taken into account when they are repaying debt or on a payment plan.
  • Ensuring that customer service arrangements are complete, thorough, fit for purpose and transparent.
  • Continuing to comply with environmental and social obligation scheme payments.

The regulator has deprioritised certain workstreams in order to deal with the current market challenges and said that it will be tougher when it comes to monitoring, compliance and enforcement.

In addition, it sets out its plans to ‘raise the bar’ in what it expects in terms of financial risk management, building on what has already been introduced through the Supplier Licensing Review. As part of this, it will be considering how existing licence conditions can be used, where licence conditions need to be strengthened and where new licence conditions may be needed.

In light of this, suppliers will need to make sure that they are meeting their licence obligations and keeping on top of compliance more than ever before. Our Energy Supplier Compliance Portal is an online resource setting out all of the rules that suppliers need to comply with. It is updated quarterly and tracks regulatory and compliance developments, such as changes to licence conditions, new licence conditions, signposting to guidance materials, and setting out examples of good practice. The latest update of the portal went live on 3 November.

Get in touch with Kate Morley-Hurst at k.morley-hurst@cornwall-insight.com if you would like further information on the Energy Supplier Compliance Portal. We offer a walkthrough of the portal and a free trial so you can see how it can help you.

Related thinking

Regulation and policy

Hanging in the balance – Ofgem’s latest proposals on protecting customer credit and RO payments

Ofgem has published a consultation setting out its latest proposal to deal with the risks – and costs – of supplier failure. This forms part of a broader piece of work on increasing the financial resilience of suppliers and curbing the costs passed on to all customers after a supplier...

Energy storage and flexibility

Network charging – what’s been going on and why should I care?

Across Great Britain there are ~810,000km of wires and underground cables that make up our electricity network. Split between the higher voltage, transmission system and the lower voltage distribution system, these lines and cables are responsible for transporting electrons up and down the country to provide consumers with the necessary...

Home supply and services

Tapestry: Ofgem’s new quarterly Default Tariff Cap

This article was extracted from our Energy Spectrum publication published 23 May 2022. Energy Spectrum is a weekly news service which keeps you up-to-date with developments in the market. For the full article please contact Jack Hunt at j.hunt@cornwall-insight.com The announcement by Ofgem of its minded-to decision in respect of...

Home supply and services

What is the Market Stabilisation Charge?

The Market Stabilisation Charge (MSC) requires all domestic suppliers acquiring a customer to make a payment to the supplier that is losing the customer. The charge applies to all switches, so suppliers are not obliged to inform competitors which tariff the consumer switched to or from. It is comprised of...

Commercial and market outlook

Cornwall Insight responds to the announcement of an Energy Bill in the Queen’s Speech

The Queen’s Speech this week included a much-anticipated announcement that an Energy Bill will be introduced at some point over the next parliamentary session. The Bill is a logical conclusion of policy development in the period since the net zero commitment was made in the summer of 2019. It accommodates...

Business supply and services

Ofgem reaches conclusion for the Microbusiness Strategic Review

The Microbusiness Strategic Review came to a close on 28 March 2022, with four finalised proposals from Ofgem that aim to protect microbusiness consumers and create a more robust framework through which the market can operate. Following the unprecedented rise in wholesale prices and recent geopolitical events, these changes are...

Business supply and services

Re-balancing the balancing costs –BSUoS charges to be levied solely on suppliers from April 2023

Balancing the electricity system costs money. National Grid in its role as Electricity System Operator (ESO) takes actions in every half hour to achieve the remarkable feat of keeping supply and demand finely balanced on our national electricity system – maintaining a system which runs between 49.8 and 50.2Hz with...

Commercial and market outlook

Ofgem outlines thinking on protecting credit balances and RO payments

This article is an extract from our Energy Spectrum publication issued on Monday 25 April. If you are interested in receiving critical policy, regulatory, market and transactional developments across the energy sector, and would like a free full sample of Energy Spectrum, please request a copy here. You only need...