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.

Regulation and policy
Kate Morley – Hurst

Kate Morley – Hurst

Related thinking

Home supply and services

Highlights from our Energy Supplier Compliance webinar

As part of our Energy supplier compliance portal service, we run a webinar every 6 months which looks at key updates.    Our latest webinar looked back at the decisions made under Ofgem’s financial resilience plan. This included strengthening milestone assessments and introducing additional reporting requirements. It also decided on the short-term interventions...

Low carbon generation

Energy System Reform: Ofgem shares plans for Britain’s energy system

Against the backdrop of record high and volatile energy prices, Ofgem set out on 8 July its view on key aspects of the GB energy system where it considers significant reform is required to deliver a resilient, low cost, low carbon energy sector. Recent developments in the energy market, such...

Regulation and policy

The changing compliance landscape

In recent months, Ofgem has been increasing its engagement with suppliers to ensure compliance with their supply licences and to deliver more resilient business models. This has been evidenced through a number of actions, such as stress testing suppliers and introducing additional reporting requirements, under the scope of the regulator’s...

Energy storage and flexibility

National Grid ESO’s ‘early view’ winter report 2022/23

We have published an alert on National Grid Electricity System Operator's Winter 2022/23 early view report.  The ESO considers that it is important for industry to be provided with a rough understanding of the situation to come, through the early view report. It is operating under the assumption that the peak...

Commercial and market outlook

Two thirds of energy industry professionals think the market needs to be drastically reformed

A survey conducted of over one hundred leading energy market professionals from across the investment and advisory community, by Cornwall Insight, from the attendees of its Financing Net Zero forum, has shown nearly two thirds (63%) of people working in the energy industry1 believe the UK market needs to be...

Home supply and services

Making the switch – how much will really change?

Last week on 1 July, Ofgem confirmed that the designated Go-Live date for the Centralised Switching Service (CSS) would be 00:01AM on 18 July 2022, as was previously anticipated. The most significant impact of this will be the requirement on suppliers to ensure switches are completed within five working days,...

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...