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NEWS: Regulations changes due to COVID-19

Written by

Jolyon Canlin, Regulations Manager

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Changes have occured in the regulations areana for energy suppliers due to COVID-19

An update on regulation changes in the energy industry

Due to the impact of COVID-19 the energy industry should expect several changes to happen in the regulations space. The following lays out a brief update on the known impacts.

If you are an ENSEK customer and require more information on any of the topics, please do not hesitate to contact your Account Director, or click the link at the bottom to request more information.

Smart meter rollout

Suppliers are still obligated to ‘take all reasonable steps’ regarding Smart meter rollout, to meet delivery of the programme by the end of 2020. Ofgem has advised that suppliers follow government guidance on coronavirus (COVID-19) and adopt appropriate measures to protect their customers and staff.

Guidance has been issued on the minimum steps that should be taken during any installation activity and that suppliers can temporarily deprioritise non-essential installations. The interpretation here is to focus on vulnerable customers and those at risk of going off supply.

Energy-UK has also announced that its members will halt ‘all non-essential field activities’. In addition, major suppliers have indicated that only emergency installations will go ahead.

The expectation from the regulator is that suppliers will keep this reduction in activity under review, considering regular government updates and guidance.

Regulatory reporting suspended for a period of time

Ofgem has stated that they expect suppliers to continue with the regulatory reporting. A new mandatory RFI has been issued which requires weekly submissions.

Despite the expectation, Ofgem has decided to defer other reporting (social obligations, complaints and guaranteed standards of performance) until July 2020.

The next submission of deferred reporting will be required to cover the full period since the last submission.

Switching Programme

Regarding the Faster Switching programme, there has been a delay of up to 6 months to the User Entry Process Testing under the Switching Programme.

There will be a revised delivery plan issued by the Switching Programme through the usual programme governance. ENSEK shall continue to provide our customers with regular updates on this.

ENSEK communications regarding the latest update has recently been sent to customers. Please contact us should you wish further information.

Other Ofgem programmes and planned consultations

Market Wide Half Hourly Settlement

Consultation on above deferred until April May 2020

Micro-business Review

Policy consultation on proposals to improve operation of micro-business market deferred until May 2020 or later.

Supplier Licensing Review

Policy consultation on cost mutualisation deferred until June 2020 or later.

Feed-in Tariff Order 2012

The order has been amended to grant extensions to the validity period for all preliminary accreditations and pre-registrations. This is for community energy solar PV installations, due to expire between 1 March 2020 and 30 September 2020.

This is a 6-month extension to their validity period or an extension until 30 September, whichever is longer.

As stated previously, if you require any further information, please get in touch with your Account Director. Equally, please click the link below to get in touch with us.

Contact the Regs team

Understand the impact of industry regulations changes on you as an energy supplier by gaining further detail. Contact the Regs team to find out more.