The Energy Bulletin: Regulations round-up September 2017

Ofgem have recently published a long-awaited consultation which details their preferred reforms to facilitate more reliable and faster switching.

Ofgem favour proposals which would see Xoserve’s UK Link and the Meter Point Registration Service (MPAS) replaced by an aligned Central Switching Service (CSS) by mid-2020 at the very earliest. The initial minimum switch for all non-domestic fuels would be 5 working days with a 2 working day objection window. However, Ofgem propose a quick transition to end of next working day switching within 3 months of go-live following a light touch assessment, although the 2 working day objection window for non-domestic switches would be retained.

As part of the proposals, Ofgem wish to create a new Retail Energy Code (REC) to provide a streamlined governance process for the regulations covering switching and other retail administration issues.

The proposals are estimated to provide a Net Present Value (NPV) for consumers of £169m to £1,056m between 2018 and 2035. Responses to the consultation are permitted until 3 November 2017 with a formal decision due to be published in January 2018. A consultation on the relevant code and licence modifications is then expected to be published in Spring 2018.