Another landmark

Firstly members were asked to note that an additional open letter was published on 19 January by DECC seeking industry views on the possible exemption of all suppliers from some smart meter roll-out licence obligations (as opposed to the proposals for small suppliers only, discussed at the January team meeting). This is to recognise that some suppliers are already installing meters with smart functionality and suggests an exemption from the replacement obligation for such meters ahead of Smart Metering Equipment Technical Specification confirmation. DECC welcomes views on its policy proposal by 13 February.

The forum then welcomed two members of Electralink who informed the members that they are currently pitching for the data transfer network (DNT) to be the gateway for the Data Communications Company that will be required for the roll-out of smart meters. It is proposing to use the information to present reports to suppliers on a commercial basis to highlighted inefficiencies in their system processes to enable improvements to be made. Electralink are currently seeking approval from its user group to have the ability to report to a single company on its performance against an industry average, which would be paid for by the inquiring company.

Suppliers were asked about their main concerns with the current Retail Market Review (RMR) proposals. On the non-domestic proposals there was a consensus that placing a licence condition on suppliers to control the practices of TPIs and extending the definition of standard licence condition (SLC) 7A (“micro-businesses”) were not favoured options. Some members thought that there is not enough distinction between brokers and sales agents. On the issue of SLC 7A concerns were raised with how the extension would interact with the Energy Ombudsman and Consumer Focus duties with regard to assisting vulnerable business customers. Concern was also raised on the evidence for the need for formal information requests on objections and transfers.

The forum members were asked to note that National Grid has issued a final notification on its transmission charges to be implemented from April 2012. There is an increase in charges across the UK with a range for the half hourly demand of between 9% and 64% and in the non-half hourly demand of between 9% and 67%. Indicative DUoS charges have also been published with a similar amount of volatility, with an average increase in charges of around 15%. It was noted that the Workstream C (WSC), which was set up to look into the volatility of DUoS charges, consulted on the appetite for “long-term” products in August 2011. Responses received to the consultation revealed that there is a demand for mechanisms to smooth out the annual volatility seen in DUoS charges. There are a number of live DCUSA modifications relevant to DUoS charge timings. Members were concerned that there are huge disturbances in regulated charges that should be predictable.

Other areas of discussion included:

• Ofgem’s current consultation on the draft Enforcement Guidelines;
• Ofgem’s current consultation on the method for setting the standard charge element of the standard tariff under its domestic RMR proposals; and
• recent governance modifications CMP201 and P272.

The next meeting of the forum will be held on 7 March. For queries and comments, please contact us.