Regulatory Information

There is a lot going on in the energy regulation world.  The chart shows the ongoing major regulatory workstreams that impact the B2B market.

BEIS has published a response to a consultation on improving the awareness of smart metering amongst MBC customers, confirming that Smart Energy GB’s remit will be expanded to include small businesses as well as householders.

Ofgem confirms network price control methodology so consumers can benefit from a cheaper, smarter and more sustainable energy network

Re-cap on the programmes of work that Ofgem is leading on changes to network charging arrangements

Ofgem are reforming switching arrangements for domestic and business markets.

On Friday, 3rd May 2019, Ofgem launched the anticipated strategic review of the microbusiness retail market that aims to identify measures to improve outcomes for microbusinesses. The call for evidence has set out their initial analysis and theories of harm alongside a microbusiness customer journey model.

Ofgem is in the process of defining RIIO-2, the next price control for the network companies running the gas and electricity transmission and distribution networks. The RIIO-2 period of 8 years starts from 2021 and determines the allowed revenue for network companies.

Andrew Green, Head of Regulation at Total Gas & Power, comments on the UK Smart Metering Programme and what it means for non-domestic customers.

TPIs are organisations that give energy-related advice, help you procure energy and manage energy needs. They act between consumers and energy suppliers and can help to form better energy choices. Ofgem's factsheet helps small businesses work productively with TPIs.

This document sets out Ofgem’s work and priorities for this year.

The European Court of Justice has ruled against the European Commission’s assessment of state aid rules in respect of the Capacity Market, and in favour of a challenge that the scheme gave an unfair advantage to conventional generation over cleaner options.

Ofgem has moved out of Milllbank and the new address is:

10 South Colonnade
Canary Wharf
London
E14 4PU

Tel: 020 7901 7000

Andrew Green, Head of Regulation at Total Gas & Power sets out potential impacts

Total Gas & Power’s urgent UNC modification 0658 is implemented by Ofgem following widespread support from the industry, enabling Xoserve to set up a UIG task force.

Project Nexus was implemented in June 2017, a gas industry project replacing the previous central IT system and introducing new settlement processes. 

The Future Energy Scenarios (FES) is an annual publication from National Grid (NG) which outlines several pathways for the future of energy. These cover the next 30 years and looks at how much energy might be needed and which sources these would come from.

The Climate Change Levy (CCL) and the Carbon Reduction Commitment (CRC) are two energy consumption taxes currently levied to encourage businesses to consume energy more efficiently.

National Transmission System (NTS) charges enable the costs associated with operating the UK gas transmission system to be recovered by National Grid under their regulated price control mechanism that is set by Ofgem. These charges form part of the total gas transportation cost that is passed through to customers.

Consultation published which closes on 07th September 2018. BEIS have published proposals to widen the eligibility criteria for energy-intensive industries (EIIs) which would exempt more businesses from the indirect costs of renewable electricity support schemes.

Ofgem considers that it is in consumers’ interests to be settled using half-hourly consumption data and as such has launched a Significant Code Review (SCR) which sets out their timetable for delivery of market-wide half-hourly settlement.

This implemented modification will have impact on DUOS charges and the differentials between half-hourly and non half-hourly customers, which, for some higher consuming customers, will be very significant.   

Ofgem has launched the programme which will deliver the regulatory and operational changes to speed up switching and make it more reliable.

DCP161 Penalties for exceeding agreed capacity. Ofgem have agreed changes to the Distribution Code.

P272 is the name given to a piece of legislation created by Ofgem that changes how larger, non-domestic customers are metered and billed. Read our FAQs here.

The UK Link IT system was replaced with upgraded technology in June 2017.  This was a very large programme of change for the industry lasting several years. 

The energy market was referred to the CMA by Ofgem in June 2014 for an investigation after the regulator concluded that there were reasonable grounds for believing that features of the market were proving detrimental to competition.

Ofgem have highlighted concerns about the electricity transmission network charging arrangements for smaller Embedded Generators (EG), including the exemptions and payments collectively referred to as ‘Embedded Benefits’.

The Industrial and Commercial Shippers and Suppliers (ICoSS) group is the trade body representing non-domestic industrial and commercial (I&C) suppliers in the GB energy market. 

The government introduced a policy to reduce the impact of renewable levies on the cost of electricity of the most electricity intensive industries in the UK. 

National Grid Gas Distribution has been renamed as “Cadent” following the sale of a majority stake in the distribution business to an international consortium.