BEIS-Ofgem Independent Suppliers Forum · BEIS collate returns and determine required sample sizes...

BEIS-Ofgem Independent Suppliers Forum3 December 2019

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Introduction from chairs

Rachel Clark, Director, Retail Systems Transformation, Ofgem

Jane Walker, Deputy Director, Energy Markets & Affordability, BEIS

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Today’s agenda

10am – Introduction from chairs

10.20am – Office for Product Safety and Standards – Metering

Accuracy

11.05am – Switching Programme update

11.35am – Workshop: Office for Low Emission Vehicles

12.10pm – Networking lunch

1.10pm – RIIO2 Open Hearings Process

1.25pm – 2.00pm – Supplier Licensing Review

2.00pm – Alt HAN Co Supplier Contract

2.25pm – Secure Communications Portal (Gemserv)

2.50pm – Coffee break

3.10pm – Settlement Reform Programme Update

3.40pm – Data in Ofgem

4.00pm – Closing remarks

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Ofgem Consumer and Markets

Programme Plan

BEIS/OFGEM Independent Suppliers Forum

Gas and Electricity Metering

3rd December 2019

Leighton Burgess & Phil Martin

Utilities – Energy Supply

David Moorhouse (Assistant Director – EnergySupply)

Leighton Burgess (Utilities Team Leader - SeniorMetering Engineer)

Phil Martin (Metering Engineer)

Kira Wade (Project Engineer)

Dev Sahota (Project Engineer)

Utilities Team

Timeline to Office for Product Safety & Standards (OPSS)

Statutory responsibility for meter accuracy transferred from OFGEMin April 2009

Responsible for Schedule 7 of the Electricity Act 1989* and section17 and Schedule 2B of the Gas Act 1986*

Activities include:

Funded via Ofgem licensees approx. £1M annually*as amended

Utilities Responsibilities

Relationship between OPSS, OFGEM and SGS (UK) Ltd

Why We Regulate

Gas Meters (1)

Prior to 2006 meters were approved under GB national legislation.

Since this date most new designs of meter have been approved underthe European Measuring Instruments Directive (MID).

Re-cast MID 2014/32/EU.

Single European Market Directive.

Conformity assessment by Notified Bodies.

MID approved meters are “deemed” to be stamped for the purpose ofthe Gas Act for as long as they conform to the accuracy requirements.

MID applies to all domestic, commercial and light industrial meters,these terms are not defined but in the UK it covers all meters below1600 m3/hr at standard conditions of temperature and pressure.

Gas Meters (2)

Offence:

Gas Act 1986 Section 17*

*as amended

Gas Meters (3)

• If any person supplies gas through a meter which has not been stamped….. he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Paragraph 17(11)

Gas Meter Markings

Evidence of the meter’s approval is visible on the meter

Different accuracy limits mean that it is imperative suppliers know which meters are MID approved and which are Gas Act

The Smart Meter Rollout is increasing the number of MID meters, and reducing the number of Gas Act meters

GB National Legislation

Prescribed statutory limit of +2.0% to -2.0%.

No defined certification period.

MID Requirements

Maximum Permissible Error +3.0% to -3.0% (Class 1.5).


Meters are “deemed” stamped for as long as they conform to theaccuracy requirements.

IST developed to assist suppliers to demonstrate compliance.

Offence

To supply gas through a meters which is not stamped.

Gas Meter Accuracy Requirements

Meters to be kept in proper order:

Gas Act 1986 Schedule 2B*

*as amended

Suppliers Responsibility

• In the case of any consumer, the…..gas supplier shall at all times, without charge to the consumer, keep any meter which is owned by him and is lent or hired to the consumer in proper order for correctly registering the quantity of gas supplied.

Paragraph 3(3)

Gas Meters - Summary

Meters to be appropriate:

Electricity Act 1989 Schedule 7*

*as amended

Electricity Meters (1)

• Where a customer of an authorised supplier is to be charged for his supply…..by reference to the quantity of electricity supplied, the…..quantity of electricity shall be ascertained by, an appropriate meter.

Paragraph 1(1)

• …..a meter is an appropriate meter for use in connection with any particular supply if it is of a pattern or construction which…..is particularly suitable for such use.

Paragraph 1(6)

Meters to be approved :


*as amended


• No meter shall be used for ascertaining the quantity of electricity supplied by an authorised supplier to a customer unless the meter..

Paragraph 2(1)

• is of an approved pattern or construction and is installed in an approved manner; andParagraph 2(1)(a)

• [Unless it is an exempt supply] is certified…..;

• …..“approved” means approved by or under regulations made under this paragraph.

Paragraph 2(1)(b)

Prior to 2006 meters were approved under GB national legislation.

Since this date most new designs of meter have been approved under theEuropean Measuring Instruments Directive (MID).

MID approved meters are “deemed to be certified” for the purpose of theElectricity Act for as long as they conform to the accuracy requirements.

Re-cast MID 2014/32/EU.

Single European Market Directive.

Conformity assessment by Notified Bodies.

MID applies to all domestic, commercial and light industrial meters, theseterms are not defined but in the UK it covers all Active Electrical Energymeters except those recording above 100 kilowatts per hour which providehalf hourly measurements.


Offence:

Electricity Act 1989 *

*as amended


• If an authorised supplier supplies electricity through a meter which is used for ascertaining the quantity of electricity supplied and

Paragraph 3(1)

• is not of an approved pattern or construction or is not installed in an approved manner; orParagraph 3(1)a

• [Unless it is an exempt supply], is not certified…..,

• he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Paragraph 3(1)b

Certification (1)

• …..a meter may be certified—

• (a) by a meter examiner appointed…..above; or

• (b) by a person who is authorised to certify meters of that description by or under regulations made under this paragraph;

Paragraph 5 (1)

• No meter shall be certified unless the examiner is satisfied—

• (a) that the meter is of an approved pattern or construction; and

• (b) that the meter conforms to such standards (including standards framed by reference to margins of error) as may be prescribed…..

Paragraph 5 (2)

Certification of meters:


*as amended

The Meters (Certification) Regulations SI 1998/1566

Certification (2)

Electricity Meter Markings

Certification

under GB national

legislation

MID

CE and metrology “M” markings

GB National Legislation

Prescribed statutory limit of +2.5% to -3.5%.

Defined certification life listed on “Schedule 4” (of SI 1998/1566).

Maximum period the meter can be used for billing.

MID Requirements


Maximum Permissible Error (approximately +/- 2% single phase,whole current, under standard UK operating conditions).

Meters are “deemed” certified for as long as they conform to theaccuracy requirements.

IST developed to assist supplies to demonstrate compliance.

Offence

Where certification is required, it is an offence to supply electricitythrough a meter which is not certified.

Electricity Meter Accuracy Requirements

Meters to be kept in proper order:


*as amended

Supplier Responsibility

Electricity Meters - Summary

Statistically based national sampling scheme

Enables suppliers to demonstrate the legal compliance of MID gas and electricity meter populations

Developed by BEIS and based on BS6002-1:1993 Sampling Procedures for Inspection by Variables

16 gas and electricity suppliers are participating with samples requested proportionately each year

Performed at regular intervals throughout a meters in-service life

Data available to participants for asset management purposes

Details available in “IST Handbook” published on BEIS website

MID In-Service Testing (IST)

MID meter populations requested from individual suppliers

BEIS collate returns and determine required sample sizes

Samples sizes proportionally allocated to participants

Participants submit samples to an approved IST test station

Test results returned to BEIS

BEIS collate test results for each meter type and assess these against the “pass” criteria

Results provided to participants for asset management purposes and trend analysis

IST Annual Process

IST Sample Sizes

Using an Acceptable Quality Level (AQL), the BS provides guidance on

sample size:

Table from IST Handbook

Currently applicable to “domestic type” meters, currently defined as ameter with a maximum flow rate (Qmax) not exceeding 6 m3/h.

Gas Meters are tested 3 years from initial metrology marking andthen subsequent sampling every 3 years thereafter

• + 3 = 2013

Meters subject to visual examinations to determine if the metershould be considered as a discarded meter or an excluded meter ifnot suitable for testing

Gas meters subject to basic accuracy testing at 0.2 Qmax and Qmax

Meters tested for Advancing under No Load [Ultrasonic only], PassingUnregistered Gas (PUG) [Diaphragm only] and Gas Tightness Test

MID In-Service Testing – Gas

M10

Currently applicable to Single Phase and Whole Current Polyphasemeters

Electricity meters are tested 6 years from initial metrology markingand then subsequent sampling every 6 years thereafter

• + 6 = 2016

Meters subject to visual examinations to determine if the metershould be considered as a discarded meter or an excluded meter ifnot suitable for testing

Electricity meters subject to basic accuracy testing at 1 Amp, 20Amps and Imax , including at differing power factors.

Meters also tested for Register Advance and No Load Condition

MID In-Service Testing – Electricity

M10

MID Testing to Date

2013 2014 2015 2016 2017 2018 2019 2020

M10 Gas M11 Gas M12 Gas M10 Gas M11 Gas M12 Gas M10 Gas M11 Gas

M13 Gas M14 Gas M15 Gas M13 Gas M14 Gas

M08

Electricity

M11

Electricity

M12

Electricity

M16 Gas M17 Gas

M09

Electricity

M13

Electricity

M14

Electricity

M10

Electricity

Disputes and Determinations

Presumptions and evidence of consumption:

Gas Act 1986 Schedule 2B*

Gas Disputes (1)

• Subject to sub-paragraph (3) below, the register of the meter shall be prima facie evidence of the quantity of gas supplied.Paragraph 4(2)

Paragraph 4(3)

Paragraph 4(4)

• Where the meter is found, when examined by a meter examiner

appointed under section 17 of this Act, to register erroneously to

a degree exceeding the degree permitted by regulations under

that section, the meter shall be deemed to have registered

erroneously to the degree so found since the relevant date,

except in a case where it is proved to have begun to do so on

some later date.

• In sub-paragraph (3) above “the relevant date”

means—

• (a) the penultimate date on which, otherwise than in

connection with the examination, the register of the

meter was ascertained; or

• (b) if regulations so provide, such other date as may be

determined by or under the regulations*as amended

Meter Examiners:

Gas Act 1986 Section 17*

*as amended

Gas Disputes (2)

• The Authority [i.e. BEIS] shall appoint competent and impartial persons as meter examiners…..

Paragraph 17(6)

• Regulations made under this section…..may make provision…..for re-examining meters already stamped, and for the cancellation of stamps in the case of meters which no longer conform with the prescribed standards…..

Paragraph 17(9)

Re-examining meters where the accuracy is disputed:

The Gas (Meters) Regulations SI 1983/684*

*as amended

Gas Disputes (3)

Disputed Gas Meter Test Results

90%

10%

Gas disputes in 2018

Within statutory limits Outside statutory limits

Presumptions and evidence of consumption:


*as amended

Electricity Determinations (1)

• The register of a meter to which this paragraph applies shall be admissible in any proceedings as evidence of the quantity of electricity supplied through it.

Paragraph 9(2)

Paragraph 9(3)

Where electricity has been supplied for any period

through such a meter which is of an approved pattern or

construction and is installed in an approved manner, the

register of the meter shall be presumed to have been

registering for that period—

(a) within the prescribed margins of error; and

(b) in the case of a meter used in connection with an

exempt supply, within any agreed margins of error,

unless the contrary is proved.

Meter examiners:


*as amended


• The Authority [i.e. BEIS] shall appoint competent and impartial persons as meter examiners…..Paragraph 4(1)


• It shall be the duty of a meter examiner…—

• (a) to examine and test any meter used…for ascertaining the quantity of electricity supplied to any premises;

• (b) to determine whether it is of an approved pattern or construction and…installed in an approved manner;

• (c) to determine whether it is in proper order for ascertaining the quantity of electricity supplied within the prescribed margins of error…

• (d) to make a written report of his conclusions…

Paragraph 7 (1)

Electricity Act 1989 Schedule 7**as amended

Electricity Determinations Test Results

Unmetered Supplies of Electricity

• Unmetered Supplies (UMS) Regulations provide for

electricity to be “sold” where it is not practical to have

a meter

• Commonly used for streetlights and other street

furniture and, more recently, EV charging points

• EAC based on charge codes

• Member of UMSUG

• Determinations under UMS Regulations

The Utilities team receives around 1500 enquiries every year – themajority from domestic consumers concerned about their gas orelectricity meter.

Enquiries processed by the BEIS Helpdesk based at our Birminghamoffice.

Consumers are advised of the legal requirements covering metersand the process for testing meters where the accuracy is disputed.

In the first instance consumers are referred to their supplier.

Enquiries about billing are referred to Citizens Advice.

Complaints about energy suppliers are referred to the Ombudsmanwebsite.

Utilities Enquiries

Any Questions…?

Gas Metering:

[email protected]

Electricity Metering:

[email protected]

Unmetered Supplies:

[email protected]

Switching Programme

The interim Survey was targeted at Licensed Parties and, for the first time, directly at Third Party IT Software Providers. Parties were asked to complete the survey by 22 November 2019. Responses were received from

● 6 Distributed Network Operators (DNOs) - in their capacity as Licenced Parties

● 74 Licensed Party out of 118 Suppliers being now being monitored, this is an increase from the 107 being monitored at the PPM Self-Assessment and the increase is due to a refresh of

● Responses from the 74 suppliers represented 99% of the market share.

● 18 out of 25 non-supplier Licensed Parties responded.

However, 51 Licensed Parties did not respond, of whom 19 did previously respond to the PPM self-assessments. This was a mixture of all types of Suppliers and all types of non-supplier licensed parties.

● 44 non-respondents were suppliers however, represent 1% of the market. this suggests that the disengaged suppliers are in the small supplier constituency.

● The IGT and IDNO parties continue to have 4 disengaged partieswhich is the same number and same parties as the PPM self assessment

These smaller organisations are typically more agile and able to respond to change rapidly however, the number of disengaged parties does remain a concern. Efforts should continue through the Small Supplier Representative and forums to drive up engagement and this will be monitored at future readiness assessment points.

PPM Follow Up Survey Update

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Number of Licensed Party (LP) responses by LP type

Licensed Party Type Total Replied No Reply

Supplier 118* 74 44

Domestic Only 38 24 14

Domestic/Non-Domestic 28 17 11

Non-Domestic Only 52 33 19

Non-Supplier 25 18 7

Gas Transporters 5 5 0

DNOs 6 6 0

iGT/iDNOs 11** 7 4

Shippers 3 0 3

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*Increase from 107 on 3 October 2019 due to a refresh of meter point data that revealed smaller organisations becoming active in the market, previously these were discounted as had a zero meter point count, and new organisations entering the market. **1 new iDNO

Third Party IT Systems Provider Total Replied No Reply

Organisations being tracked 15** 4 11

Number of Third Party IT Systems Providers responses

***number being tracked as part of the Switching Programme

Source: Programme Coordinator

Feedback from Independent Suppliers

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1.Governance

2.Switching Programme 101

3.Consequential Change

4.Adaptor Services

5.Salesforce

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Electric Vehicles uptake: tariffs, smart charging and preventing vulnerable customers from being ‘left behind’ (11:35-12:10)

We want to hear your views:

• How are you accommodating for EV uptake and smart charging in your business models? • Have you/are you planning to put an EV tariff in place?

• What are the EV-specific challenges/barriers you are facing?• How could these barriers be resolved? Is there anything specific for government?

• What types of consumers are you engaging with on EVs? • How are you thinking of making your EV offer accessible for all?

RIIO-2 Open Hearings

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Giving Consumers a stronger voice

Enhanced Engagement for RIIO-2

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Consumer Challenge Group

• Appointed by Ofgemto review companies business plans

• Report on plans by17 January 2020

Customer Engagement Group/ User Group

• Appointed by each Network Company

• Report individual plan by 22 December 2020

Open Hearing

Hear submissions and evidence on the

business plans from:

• The groups from their reports

• Other stakeholders from call for evidence

Open Hearing proposals

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Timescales for open hearings

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Key Deliverable Date

Companies publish their Business Plans 9 December 2019

Ofgem publishes call for evidence and confirm the dates and geographical location of hearings w/c 9 December 2019

Ofgem (and Challenge Group) receives Customer Engagement Groups’ and User Groups’ reports on the company

Business Plans.22 December 2019

The network companies publish the Customer Engagement Groups’ and User Groups’ reports on the company

Business Plans23 December 2019

Ofgem publishes the Challenge Group report on the company Business Plans 17 January 2020

Close of consultation on the call for evidence 10 February 2020

Ofgem circulates agenda for the Open Hearings End February 2020

Open Hearings From mid-March 2020

Supplier Licensing Review

There has been a significant increase in the market share of smaller suppliers in recent years – small and medium sized suppliers now account for around 30% of the market. Consumers have benefited from increased competition.

Context

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0%

5%

10%

15%

20%

25%

2004Q1

2004Q3

2005Q1

2005Q3

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

2010Q3

2011Q1

2011Q3

2012Q1

2012Q3

2013Q1

2013Q3

2014Q1

2014Q3

2015Q1

2015Q3

2016Q1

2016Q3

2017Q1

2017Q3

2018Q1

2018Q3

2019Q1

British Gas EDF E.ON Scottish Power

SSE Co-operative Energy Shell Energy(First Utility) OVO

Utilita Utility Warehouse Avro Energy Green Star Energy

Bulb Energy Octopus Energy Small Suppliers Npower

Domestic electricity supplier market share over past 15 years (%)

Why intervention is necessary

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However, increased market entry has created some risks for consumers. A number of energy suppliers have failed over the past 18 months, and others have failed to meet their financial commitments under government schemes such as the Renewables Obligations and Feed-In Tariffs regime.

Theories of harm

Supplier Licensing Review timeline

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As in any competitive market, we expect that over time some suppliers may fail. We want to ensure that if this happens customers are protected and wider market impacts are minimised.

June 2018Ofgem announces Supplier Licensing

Review.

November 2018Ofgem consults on

proposals to change entry criteria.

June 2019

Published decision on enhanced entry requirements.

May 2019Working paper on

proposals for ongoing and exit requirements.

October 2019 Published policy

consultation for ongoing and exit requirements.

Market Entry

• New requirement to demonstrate appropriate knowledge, funding, awareness of risks and necessary capabilities

• New requirement to demonstrate awareness of key regulatory obligations & how the supplier intends to comply

• ‘Fit and proper’ test of persons with significant responsibility

Ongoing Requirements & Exit Arrangements

• New requirements to ensure suppliers manage risk effectively and are prepared for customer growth

• New protections to ensure suppliers bear an appropriate share of the costs associated with risk, rather than wider industry

• New requirements to ensure suppliers, when they fail, do so in an orderly manner

Supplier Licensing Review core principles

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• Adopt effective risk management and be adequately prepared and resourced for growth, and bear an appropriate share of their own risk.

• Maintain capacity and capability to deliver a quality service to their customers and foster and open and constructive dialogue with Ofgem.

Suppliers should…

• Maintain a proportionate oversight of suppliers, and ensure effective protections for consumers exist in the event of failure.

• Ensure our licensing regime facilitates effective competition and enables innovation.

Ofgem should…

Policy proposals for ongoing requirements and exit arrangements

Promoting better risk management

Cost mutualisation protections

Operational principle

Milestone assessments

More responsible governance and

increased accountability

Ongoing fit and proper

requirement

Open and cooperative

principle

Increased market oversight

Living will

Independent audits

General monitoring and

reporting

Exit arrangements

Administrators

Trade sales

Portfolio splitting

Our proposals

Supplier Licensing Review package of policy proposals

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Smart Metering: Alternative Home Area Network

What you need to know (and do)

Independent Suppliers Forum

3rd December 2019

Paul Cooper, Managing Director

Our delivery approach

1. Two technology companies developing solutions

Plan to down-select once technology proven

Mix of point-to-point and shared solutions

Designs cover all use cases

2. Separate contract to stand up operational services and

interfaces with energy suppliers

3. Stage gate approach to decision-making, as confidence (and

financial commitments) build

4. Ongoing engagement with BEIS to establish shared

understanding of value-for-money for consumers

5. Active collaboration with suppliers to test, challenge and refine

the design

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Momentum is building – during 2019 we have…

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Key delivery plan milestones

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Journey to being an Alt HAN user

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Why Alt HAN matters to your supply business

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Why Alt HAN matters to your supply business

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What we need

More representative Board and Forum

More input from smaller suppliers into the design process

All suppliers to be ready – operationally and commercially – to

use Alt HAN services when they launch

Contact us on:

Secretariat:@althanco.com

+44 (0)20 7090 7766

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MRA and SPAA Secure Communications

Jonathan Hawkins

The Secure Data Exchange Portal (SDEP)

Background

The MRA and SPAA require that Suppliers and Networks Operators work together to resolve a number of issues that may arise during the lifecycle of a Metering Point.

These include processes relating to Switching Exceptions, Prepayment Exceptions, Address Management, Disconnection, Metering Data and Settlement Exceptions.

The majority of communications are managed by sending Data Flows through Data Transfer Network, however the MRA and SPAA also require operational queries and escalations to be resolved by email or telephone, which usually contain personal data.

Following the implementation of the General Data Protection Regulations (GDPR) into UK law on 25th May 2018, many MRA and SPAA parties reviewed their practices around sending personal data. This has resulted in differing methods and standards adopted by each organisation in the market, often contradicting each other, creating operational challenges in the market.

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The Secure Communications Working Group

The Secure Communications Working Group (SCWG) was established by the MRA Executive Committee (MEC) in July 2018, consisting of MRA and SPAA parties and the SPAA Code Administrator.

The purpose of the SCWG was to identify a common solution to ensure the secure transfer of personal data sent between parties to satisfy their obligations in the MRA and SPAA.

The SCWG decided to issue an Invitation to Tender (ITT) to potential solution providers to identify an interoperable solution for the market to communicate personal data securely that is currently sent by email.

4 responses were received and 2 potential solutions were recommended to MEC for decision, where MEC selected a solution using ECOES as a platform to enable Secure Communications between market participants.

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Changes to the MRA

MRA CP 0262 (Web based solution for sending customer information securely): Introduces new Clause 58 to the MRA

Requires that MEC procure the establishment, operation and maintenance of a “Secure Data Exchange Portal” to enable market participants to exchange data.

Mandates that Suppliers and Distribution Businesses use the Portal when exchanging personal data relating to Consumers, where this isn’t exchanged via another secure means (e.g. the DTN).

Funded by Electricity Suppliers while in the MRA. Will be funded by all Suppliers when transferred to the Retail Energy Code (REC).

Accepted by MDB on 29th August 2019.

Will be implemented 25th June 2020.

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Changes to the MRA

MAP CP 0323 (Introduction of new MRA Agreed Procedure for the Secure Data Exchange Portal)

Introduces a new MRA Agreed Procedure (MAP) to govern the establishment, operation and maintenance of the Secure Data Exchange Portal (SDEP), and the requirements for provision of access to the SDEP.

Issued for industry impact assessment on 2nd December 2019. MDB will vote on the proposal on 30th January 2020.

Implementation on 25th June 2020.

MAP CP 0322 (Changes to existing MAPs required for the implementation of the Secure Data Exchange Portal)

Proposes the consequential amendments to existing MRA Agreed Procedures to clarify that information previously sent by email should be sent using the SDEP.

Issued for industry impact assessment on 2nd December 2019. MDB will vote on the proposal on 30th January 2020.


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Changes to the SPAA

SCP 472 (Web-based solution for sending Customer information securely) makes equivalent changes to the SPAA:

Mandates that Gas Suppliers only (not Gas Transporters) use the Secure Data Exchange Portal to exchange personal data relating to Consumers for named SPAA procedures.

Accepted by SPAA Change Board on 10th September 2019.

Will be implemented 26th June 2020

SCP 485 (Consequential Amendments following SCP 472 ‘Web-based solution for sending Customer information securely’)

Proposes the consequential amendments to existing SPAA Schedules to clarify that information previously sent by email should be sent using the SDEP.

To be issued for industry impact assessment on 10th December 2019. SPAA Change Board will vote on the proposal on 11th February 2020.


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Technical Solution

New module within ECOES

Secure, robust, fully audited centralised GDPR compliant solution

Provides a secure information exchange facility, not an enduring file storage facility

Encrypted both in transit and when at rest on the servers

Files will be automatically archived after a defined number of days

Audit data will remain within the database, but not the content of the message or attachment

No transactional charges for volume / size of messages transmitted

Hosted within the ECOES Service Provider’s ISO27001 data centres

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Functionality

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Home Page / Menu

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Sending Communications

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Sending Communications

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Receiving Messages

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Receiving Messages

84

User Management

85

User Management

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SDEP Supported Business Processes

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SDEP Access Agreement

Parties All Suppliers and Electricity Distributions Businesses will be required to use the SDEP from the MRA and SPAA releases in 25th June 2020 and 26th June 2020 respectively.

Will be required to accede to the terms and conditions of the service set out in the SDEP Access Agreement.

The SDEP Access Agreement was issued to MRA and SPAA parties for consultation between 11th November 2019 to 29th November 2019.

The final version will be agreed by the MRASCo Board in their meeting on 17th

December 2019.

Parties will be invited to accede to the agreement in February/March 2020.

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Next steps

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Summary

All Suppliers (Domestic and Non-Domestic) will be required to use the SDEP from 25th/26th June 2020.

You must accede to the Access Agreement before being granted access.

User Acceptance Testing to commence in May 2020.

Full training to be provided in June 2020.

Any Suppliers not using the service after the June release will be unable to comply with their obligations in the MRA and SPAA.

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Any questions?

[email protected]

mailto:[email protected]

Settlement Reform: Project Update

Agenda for today

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1) Update on Settlement Reform

2) Target Operating Model and Transition Approach

3) Business Case

To contact us, please email [email protected]

mailto:[email protected]

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Settlement Reform: Benefits

Project update

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DWG Preferred Target Operating Model

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Target Operating Model

Target Operating Model:

• The DWG has now developed and consulted on a transition approach.

• Key points to note from the DWG recommendations:

– It will be a phased transition approach – no ‘Big Bang’, with incremental stages.

– Different market segments can transition at different times.

– Move to the new settlement timetable is to occur once the full TOM is in place

– The final disputes run is proposed to be at 20 months – with a ratcheted materiality

– The PAB will deploy/adjust PAF techniques as appropriate during transition

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Business Case

• In the summer we issued a detailed Request for Information

• We are engaging with stakeholders that responded

• This will inform our draft impact assessment –expect to publish for consultation early 2020

• And Full Business Case – expect to publish Q3 (July – Sept) 2020

• We would welcome even high level information from small suppliers about costs and cost drivers under MHHS

• Keen to have meetings or calls to discuss

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Business Case

• In particular interested in:

– MHHS versus elective

– Import and export

– Implementation timetables

• interaction with other programmes, milestones, early movers

Implementation period

Migration/adoption and

parallel running

Migration/Adoption can occur in the implementation period as and when the systems and processes are ready. Some market

segments may move before others

Cutover to the TOM and new settlement timetable

2, 3 or 4 years 1 year

Q3

20

20

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Business Case

• In particular interested in:

– Data aggregation

• think there could be benefits from sending disaggregated data to central settlement systems – looking at the evidence

– Shortening the settlement timetable

• final reconciliation (RF) at 4 months

• final disputes run at 20 months – with a ratcheted materiality

– Data access: collecting consumer data sharing choices

– Supplier messaging and wider public communications

– Programme governance

Data in Ofgem

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• What is the greatest data burden that affects you on a day to day basis?

• What data do you want access to, in the energy sector or broader?

• What do you think of the Gitlab public account and the validation tool? Have you heard of this?

• Have you heard about the competition – would you like to be kept informed / engage with this?

• How would you help modernising energy data?

• How to you maintain your data submission schedule? Is it a calendar, how is it stored, can we have access to it?

Idea’s / prompts for questions

Data Services: What we do

Our delivery is transformative

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Process improvement is continuous: Initial process

Process improvement is continuous: Mid-level process

Process improvement is continuous: Mature process

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A web-based tool for interactive analytics and collaboration:Zeppelin

A place to store and share code:GitLab

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External (public): https://gitlab.com/ofgem/

https://gitlab.com/ofgem/

What is the Data Exchange:Previous, As-Is, Future Plans

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Showcase: Data Exchange

Our Data Principles

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Ofgem’s Data Principles:

1. Understand data needs

2. Identify the types of data ownership and level of interaction with the data

3. Standardise your data

4. Understand and maintain the quality of your data

5. Share your data as widely as possible

6. Make your data easy to use, linkable and portable

7. Make your data easy to find

8. Protect data using best practice

9. Build a community around data

Collaboration with regulators to explore commonalities in data needs across different industries

Data initiatives and data strategy

EDTF Recommendations

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EDTF portfolio of activities

Our core purpose is to ensure that all consumers can get good value and service from the energy market.In support of this we favour market solutions where practical, incentive regulation for monopolies and an approach that seeks to enable innovation and beneficial change whilst protecting consumers.

We will ensure that Ofgem will operate as an efficient organisation, driven by skilled and empowered staff, that will act quickly, predictably and effectively in the consumer interest, based on independent and transparent insight into consumers’ experiences and the operation of energy systems and markets.

www.ofgem.gov.uk

BEIS-Ofgem Independent Suppliers Forum · BEIS collate returns and determine required sample sizes...

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