Ofgem has published two letters this month which we think all suppliers should have reference to.
Should there be any considerations within your business of a trade sale (from either side of the transaction) then the first letter, published on the 4th May, sets out Ofgem’s expectations of energy suppliers.
The regulator is primarily concerned with protecting the consumer and ensuring a good customer experience.
If any suppliers are considering a trade sale in the current climate then Ofgem suggests the following:
Ofgem regards a trade sale as preferable to regulatory intervention, which could lead to a SoLR scenario in the event of supplier failure.
ENSEK’s Regulation Team can offer consultancy services for any suppliers wishing to consider engaging in a trade sale transaction or for a tender opportunity following a SoLR event.
This will cover early advice and planning through to managing data migration, providing insights and ongoing support from our expert team.
A further letter has been published, dated 7th May, to remind suppliers of their licence requirements and set expectations of Insolvency Practitioners to ensure customer protection is maintained.
It specifically sets out the obligations on Insolvency Practitioners, should there be a situation where an IP is involved with a supplier. It specifies the obligations under SLC 21BA with regards to back-billing.
Ofgem has engaged with a number of suppliers to ensure that their T&C’s are compliant with SLC 21BA.
ENSEK's Consulting Practice can provide support to ensure you achieve regulatory compliance and the correct controls are in place when working with an IP.
If you want to find out more about any upcoming developments or discuss how we can support you further please click the link below to contact the Regulations team for more information.
Understand Ofgem's expectations of energy suppliers and gain more information on industry regulations updates. Contact the Regs team to find out more.