28 May 2021
May 2021 Industry Newsletter
Welcome to the Corona Energy Industry Newsletter.
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?
- Consultation Issued to Roll Over Existing AUGE UIG Allocation Tables: UNC Modification 0758 ‘Temporary Extension of the AUG Statement Creation Process’ seeks to roll over the 2019/2020 UIG allocation tables for the 2020/2021 year. This follows a contentious period where the new Allocation of Unidentified Gas Expert (AUGE), the independent party who utilises an in-depth methodology to allocate UIG costs across the industry, has been challenged on this methodology. The new factors proposed by the AUGE propose an increase to non-domestic UIG costs, and so Corona Energy are planning to support this modification. You may have already seen some literature on this matter provided by our Sales Team, but if you would like further details please get in touch.
- Renewable Energy Guarantees of Origin (GoOs) – Updated Guidance: Following Brexit, Ofgem have issued an update to their guidance for Suppliers on how GoOs can be used when calculating their Fuel Mix Disclosure and Feed-in Tariff levelisation. This is unlikely to impact our customers directly, but you may see some subtle changes in our Fuel Mix Disclosure once it is updated in October.
- Microbusiness Strategic Review: Ofgem have indicated that they intend to issue their Statutory Consultation for the Microbusiness Strategic Review in the first week of June 2021. Based on their previous indications and an appearance on the BBC’s Rip-Off Britain, we expect the focus to be on Broker commission transparency, an Alternative Dispute Resolution (ADR) process for Broker related complaints and a Contractual Cooling-Off Period. We continue to work closely with Ofgem on these proposals and will keep our customers updated with the progress.
What is ‘DES’?
You may have heard the term ‘DES’ or ‘National Database’ being used when discussing your gas meter with your Supplier. Following last month’s explanation of ECOES for the electricity side of things, we’d like to break down the ‘Gas National Database’ for you:
- The Data Enquiry Service or ‘DES’ is the name of the central industry database that holds data on each gas meter in the UK energy market. This database holds the technical data and specifications of your meter, but does not hold any personal data or information about the customer who owns the meter. This database allows for technical data to be accessed by a new Supplier upon a Change of Supplier event and allows a Supplier to quote a contracted price correctly based on the meter details held in DES.
- DES is run by a company called Xoserve, which is a company set up and owned by the Gas Transporters to ensure that correct data is shared amongst all industry parties as required, in a secure and timely fashion.
What does this mean?
DES and/or Xoserve probably won’t impact you or your supply on a day-to-day basis, however sometimes a Supplier may fail to update DES with new data, such as if you have a meter exchange and the new meter’s serial number is not updated correctly on DES by the Supplier. This will not impact your supply in any way, however when you come to move to a different Supplier, this may cause some problems as the new Supplier’s records will not match the records on DES. Although details can be updated quickly in DES, this can cause a small delay in registering with your new Supplier. If you’d like to find out more about DES or Xoserve, you can visit their website here: https://www.xoserve.com/about-us/what-we-do/
Energy Regulation Horizon for 2021
As you’re probably aware already, 2021 is set to be another year of major reform in the world of energy. What should you be focussed on? Below we’ve complied the Top 5 to Watch this year.
- Market-Wide Half Hourly Settlement
This industry project run by Elexon and Ofgem seeks to utilise the output of smart metering, namely half-hourly consumption data, to input more accurate data into Settlements and reducing the reliance on forecasting, with an estimated benefit of £1.5-£4.5bn. Implementation of Market-Wide Half Hourly Settlement is expected in late 2024.
- 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. We we’ll keep you informed if this is the case
- Ofgem’s Targeted Charging Review (TCR)
Ofgem are currently undertaking a Targeted Charging Review looking at how Networks apply their charging methodologies. This mostly deals with the complex world of Network charging arrangements which are passed through to consumers via their Supplier. Tariffs and groupings have now been finalised by the networks, but the implementation date for these changes has now been pushed back to 2022.
- 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.
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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