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Regulatory Information
Change of supply process set for a major overhaul
Ofgem are reforming switching arrangements for domestic and business markets.
Latest News
Major industry regulatory work programmes
There is a lot going on in the energy regulation world. The chart shows the ongoing major regulatory workstreams that impact the B2B market.
Ofgem cuts the cost to customers under new network price controls (RIIO-2)
Ofgem confirms network price control methodology so consumers can benefit from a cheaper, smarter and more sustainable energy network
BEIS confirm Smart Energy GB will be required to promote smart meters to Micro-business customers (MBCs)
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.
Updates and Information
Updated June 2019
Ofgem launch the strategic review of the microbusiness market
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 to overhaul the Electricity Network Charging Regime
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.
Smart vs Advanced metering: what does it mean for UK non-domestic energy customers?
Andrew Green, Head of Regulation at Total Gas & Power, comments on the UK Smart Metering Programme and what it means for non-domestic customers.
Ofgem guidance for small businesses on dealing with Third Party Intermediaries (TPIs)
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.
Ofgem’s Forward Work Programme for 2018/2019
This document sets out Ofgem’s work and priorities for this year.
European Court of Justice Suspends Capacity Market
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 offices
Ofgem has moved out of Milllbank and the new address is:
10 South Colonnade
Canary Wharf
London
E14 4PU
Tel: 020 7901 7000
Brexit - What could it mean for UK non-domestic energy supply?
Andrew Green, Head of Regulation at Total Gas & Power sets out potential impacts
Unidentified Gas
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.
National Grid Launch Future Energy Scenarios 2018
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.
Future changes to the CCL and the CRC
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.
Changes to the gas transmission charging regime
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.
BEIS’s proposals to widen the eligibility criteria for EIIs
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 programme to deliver universal half-hourly electricity settlement
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.
Changes to Distribution Network charges
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.
Faster and more reliable switching programme
Ofgem has launched the programme which will deliver the regulatory and operational changes to speed up switching and make it more reliable.
DCP161 - Changes to excess capacity charges for Half-Hourly Electricity Customers from April 2018
DCP161 Penalties for exceeding agreed capacity. Ofgem have agreed changes to the Distribution Code.
P272 Legislation
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.
Central Gas Industry IT System replacement “Project Nexus”
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.
Competition and Markets Authority (CMA) investigation into the Energy Market
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 review of embedded generation benefits - (CMP264 and CMP265)
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’.
Do you know about ICoSS?
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.
Energy Intensive Industries (EII) exemption from Energy Efficiency Policy taxes
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 renamed
National Grid Gas Distribution has been renamed as “Cadent” following the sale of a majority stake in the distribution business to an international consortium.
Xoserve have appointed a new CEO
Sian Baldwin has been appointed as Xoserve’s new Chief Executive Officer with effect from 5th June replacing Chris Murray from National Grid.