23 Dec 2019
December 2019 Industry Newsletter
Welcome to the December Corona Energy Industry Newsletter.
It’s safe to say that Energy regulation isn’t the easiest subject matter – it can be dry and often uses complex language with details being hard to come by. At Corona Energy we believe in putting the Customer first, that’s why we use our position as the third largest Non-Domestic Gas Supplier in the UK Market to voice your needs, views and concerns at key regulatory meetings, from lobbying Ofgem, The Department for Business, Energy and Industrial Strategy (BEIS) and other regulatory bodies and industry parties to ensure you are represented and treated fairly.
As part of our service to you, this monthly newsletter will keep you informed of the latest developments in the world of energy regulation in a way that is informative, easy to read and useful to you: our Customers.
What has been going on in the last few weeks?
- General Election: While it’s not strictly regulation news, the Conservative Party’s victory in the December 2019 General Election means that we are unlikely to see any material changes to the regulatory landscape for some time. If we do see any large scale regulatory or policy changes, we’ll be sure to let you know.
- Amendments to Gas Transmission Charging Regime: This change seeks to make some parts of Gas Transmission Charging ‘site specific’ rather than ‘socialising’ and spreading costs across the network – meaning that it would have been more expensive for sites further away from a network entry point such as the Outer Hebrides. As reported last month, Ofgem are undertaking a Regulatory Impact Assessment on the proposed solutions. We’re hoping to hear some news before the Christmas Publishing Moratorium, but this decision may be pushed back into the new year.
You may have heard the term ‘Objection’ being referred to around your attempt to change supplier. Where you may expect this to be shouted in a courtroom on a dramatic TV show, the Objections process is also very important in the Change of Supplier process in the energy industry.
An Objection allows a Supplier to block a Change of Supplier event, but only under very specific circumstances. Within the I&C Market, this generally means:
- When a supply contract is already running (aka the contract has not entered its 30 day termination window), or a future contract has already been agreed; or
- When a meter point has a debt outstanding for over 28 days.
These regulations can be found under the Gas and Electricity Supplier Licence Conditions 14.
What does this mean?
The important thing to remember here is to make sure you have all the information you need regarding your supply contract(s) and your credit or debt balances before starting your negotiations with your chosen Supplier or Broker. Energy Suppliers are regulated to include a lot of this information on your bills – so make sure you have one to hand when you start off this process. To ensure a smooth Change of Supplier process, we recommend:
- Have all you required supply numbers to hand (MPAN for Electricity and MPRN for Gas);
- Be aware of your current contract end date for each Supply – even if they are different, Corona Energy can offer you bespoke contract durations to align them to a common end date;
- Have the Estimated Annual Consumption (EAC) for Electricity and your Annual Quantity (AQ) for Gas available for each meter – this will allow us to quote you more accurately; and
- Make sure any outstanding debts are cleared as soon as possible with your previous Supplier so that they have no grounds to object.
Energy Regulation Horizon for 2019
As you’re probably aware already, 2019 – 2020 is set to be a year of major reform in the world of energy. What should you be focused on? Below we’ve complied the Top 5 to watch this year.
The issue on everyone’s lips at the moment, the uncertainty around Brexit is a concern for all businesses and policy makers across all UK industries. With the result of the December 2019 General Election now being known, it is likely that a lot of uncertainty around Brexit will now start to fade. Rest assured, Corona Energy will continue to keep you updated as best we can.
- Code Governance Reform
The framework of the UK’s Energy rulebooks, called Industry Codes, is going through huge reform at the moment with the development of the Retail Energy Code (REC). The REC seeks to take complex industry processes from various industry codes (The Master Registration Agreement, The Supply Point Administration Agreement, The Uniform Network Code, The Distribution Connection Use of System Agreement just to name a few) and bring them together into a single, dual fuel code to make a cleaner more transparent repository of these key processes. In this reform it is likely that Supplier obligations may change and this might have an impact on our Customers. The basic REC framework has now been created and the phased implementation will take place over the next few years. We we’ll keep you informed of any updates that may impact you.
- Ofgem’s Significant Code Review (SCR) and TRIADs
Ofgem are currently undertaking a SCR, or in depth investigation, on Electricity Network Access and Forward-looking Charges. This mostly deals with the complex world of Network charging arrangements which are passed through to consumers via the Supplier but has little impact on Consumers and Suppliers as the changes are likely to impact the networks. However, there is talk of removing TRIAD charges. TRIADs are basically the three times in the winter of a year with highest electricity demand, and are used by National Grid to calculate some aspects of electricity transmission charges. TRIADs can be pretty costly for some larger Half Hourly metered customers and over time there have been many initiatives to reduce TRIADs including shifting times of peak demand and off-setting demand with generation. With talks of removing TRIADs, the way transportation charges are calculated may need to be changed. We’ll keep you updated with any developments.
- Demand and Microgeneration Management
Demand Side Response (DSR) and peer-to-peer trading basically means that we’re heading towards a world where you can purchase your energy from your peers. These peers are those people in your local area of the grid who are generating – for example with a small turbine or solar panels. We’re a way off this yet with the existing networks and associated regulations needing to catch up with new innovations, but this opens up many opportunities. If you’re interested in DSR, why not check out our article on Battery Storage and the future of the network on our website? Or come and talk to us about the possibilities: we’d love to hear from you.
- Smart Meter Rollout
Where the Department for Business, Energy and Industrial Strategy (BEIS) are now settling into the domestic Smart Meter Rollout Programme, they are starting to look at the non-Domestic sector. You have likely been contacted by your Supplier regarding this programme and we will keep you up to date with the latest developments that may impact our customers.
Finally from everyone here at Corona Energy we’d like to wish all of our Customers, Partners and industry colleagues a Merry Christmas and a Happy New Year!
Disclaimer: The information provided in this newsletter is intended to be a general guide and should not be taken to be legal and/or regulatory advice. At no time will Corona Energy actually or be deemed to be providing advice and no actions taken by Corona Energy shall constitute advice to take any particular action or non-action. Whilst every effort is made to provide accurate and complete information in this newsletter, Corona Energy cannot guarantee that there will not be any errors. Corona Energy makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of the newsletters and expressly disclaims liability for errors and omissions in the contents of this newsletter. Neither Corona Energy, nor its employees and contractors make any warranty, expressed or implied or statutory, including but not limited to the warranties of non-infringement of third party rights, title, and the warranties of merchantability and fitness for a particular purpose with respect to content available from the newsletters. Neither does Corona Energy assume any legal liability for any direct, indirect or any other loss or damage of any kind for the accuracy, completeness, or usefulness of any information, product, or process disclosed herein, and do not represent that use of such information, product, or process would not infringe on privately owned rights.
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