Regulation and policy

  • Regulation and policy

    How will consumers take to Market-wide Half Hourly Settlement?

    Ofgem published its decision to implement the move to Market-wide Half Hourly Settlement (MHHS) on 20 April. This confirms plans to move to new settlement arrangements over a four and a half year time period, with the Elexon-led Design Working Group’s Target Operating Model to be used as the blueprint. Meters...

  • Regulation and policy

    Ofgem raises modifications ahead of RCC and new switching arrangements

    The latest edition of our Faster Switching Service Report due to be issued this week includes the latest developments in Ofgem’s Switching Programme and the associated Retail Energy Code (REC). Launched in November 2019, the Retail Code Consolidation (RCC) Significant Code Review (SCR) set out Ofgem’s intention to amalgamate the...

  • Regulation and policy

    Calm before the storm? 2021 energy supplier compliance developments

    The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

  • Regulation and policy

    Electricity transmission charging reform – overtaken by changing priorities?

    Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...

  • Low carbon generation

    Why energy system governance is not fit for purpose

    In my recent blog, the Emperor’s new clothes I referenced a poll of our Financing Net Zero (FNZ) membership which revealed 75% support for an energy systems architect to ensure we manage the net zero transition. In the spirit of independent thinking that Cornwall Insight is known for, I respectfully disagreed and...

  • Announcement

    What’s changed? Celebrating 750 issues of Energy spectrum

    Today marks 750 editions of Energy Spectrum, our flagship publication which covers news and insight on the energy market. To celebrate, we present six Energy Perspectives from past publications, going as far back as 2005, which we believe still have relevance today.  Issue 4 – ‘Smart metering’ - Energy policy’s missing...

  • Regulation and policy

    Answers to some FAQs about Brexit

    Following the end of the transition period on 31 December 2020 and the signing of the Trade and Cooperation Agreement, aspects of the relationship between UK and the EU in respect of the arrangements for energy trading and cooperation have changed. We set out answers to some Frequently Asked Questions...

  • Business supply and services

    Energy suppliers must be ready to demonstrate compliance with new principles

    From 22 January, energy suppliers were required to follow new principles resulting from Ofgem’s Supplier Licensing Review (SLR), which initially kicked off nearly three years ago. Such was the breadth of the SLR, changes were introduced in two rounds, with the first round of changes bringing the introduction of tougher...

  • Regulation and policy

    Ofgem “hands-on” in RIIO-2 as net zero route unfolds

    During the next round of the RIIO price controls, Ofgem can be expected to take a more hands-on approach to outputs the networks are required to provide and the allowed revenues they can charge their users or consumers. This will have impacts for network development including the enabling of electric...

  • Commercial and market outlook

    A look back at 2020 part 4

    As we take our first steps into 2021, we take our final look back at the biggest developments in the UK energy markets in 2020, setting us up for the significant year ahead. Ofgem issued its decarbonisation Action Plan on 3 February as Jonathan Brearley became Ofgem CEO, setting out...

  • Business supply and services

    A look back at 2020 part 3

    As we take our first steps into 2021, we continue to look back at the biggest developments in the UK energy markets in 2020, setting us up for the significant year ahead. The mergers and exits from the supply market that were seen in 2019 continued into 2020 and led...

  • Regulation and policy

    New gas transmission charging requires early charge changes

    New gas transmission charging arrangements were implemented in October 2020 under UNC678A Amendments to Gas Charging Regime (Postage Stamp) in order to achieve alignment with the EU Tariffs Code (TAR). The change introduced a framework around capacity charges to cover transmission revenues with a methodology to calculate reserve prices based...

  • Regulation and policy

    Ofgem’s Network Access and Forward Looking Charges review – should I be interested

    Spoiler – if you are a distribution connected generator, yes, In a big way Ofgem is currently progressing one of its biggest overhauls of network charging; with the Targeted Charging Review having only recently concluded that is quite a statement. We have already seen the value to distribution connected generators...

  • Regulation and policy

    What will the introduction of the Retail Energy Code mean for metering companies?

    Ofgem has proposed that certain metering companies will need to become full parties to the new dual fuel Retail Energy Code (REC). What will this mean in practice? Metering Equipment Managers (MEMs) is a term introduced for the REC, encompassing electricity Meter Operator Agents (commonly termed MOPs) and gas Meter...

  • Regulation and policy

    Targeted Charging Review residual network charges – some remainders

    While Ofgem has ruled on the arrangements that will apply to distribution use of system (DUoS) charges from 1 April 2022 following the regulator’s Targeted Charging Review (TCR) Significant Code Review (SCR) decision last November, it has still to determine a series of CUSC modifications that aim to put in...

  • Regulation and policy

    Finding best practice in Ofgem’s compliance engagement outcomes

    The past few months have involved a shake-up of the status quo for all of us, with the ramifications of COVID-19 having a disproportionate impact across society. Being an essential service, energy has been at the forefront of policy-makers minds as suppliers have sought to ensure that those most severely...

  • Business supply and services

    COVID-19: A collection of resources

    This year has seen Governments, businesses and industries coming to terms with the impacts of the COVID-19 crisis. The arrival of the pandemic shook the energy market across the value chain. Throughout, our experts have provided the industry with coverage of how COVID-19 has impacted the energy market. We analysed...

  • Regulation and policy

    Ofgem faces RIIO-2 balancing act for net zero

    The regulator recently issued the draft determinations for the RIIO-2 price control for the transmission and gas distribution networks and the electricity system operator (ESO). These price controls will run for five years from April 2021. Shortly after, it also set out the next stage of detail – the “sector...

  • Regulation and policy

    Faster Switching Programme gears up for re-commencing

    Due to be issued this week, the sixth edition of our Faster Switching Service Report details the Switching Programme’s re-planning exercise as well as industry participants’ progress on data cleansing. The Switching Programme is facilitating the industry’s move towards new arrangements from March 2022, which should see domestic customers able...

  • Regulation and policy

    New horizons: DCC plans to expand remit over next 5 years

    The government awarded the Data Communications Company (DCC) licence to Capita subsidiary Smart DCC Ltd in 2013. As an Ofgem-regulated monopoly, the DCC’s remit was to set up the smart metering communications infrastructure, linking up 53mn electricity and gas meters with the systems of energy suppliers, network companies and third...

  • Business supply and services

    Why now? Regulation in the TPI market

    Ofgem published its long-awaited policy proposals on 29 July following a review of the microbusiness sector. These build on its initial consultation from May 2019 and look to ensure that microbusinesses can access a competitive market and secure adequate levels of protection. The approach will be a defining moment for...

  • Regulation and policy

    Into the unknown: navigating principles-based regulation in unpredictable times

    On 1 August our latest update to the Energy Supplier Compliance Portal went live and included changes to the compliance landscape seen during May, June and July this year. Among other developments, Ofgem’s final proposals as part of the second phase of its Supplier Licensing Review (SLR) are reflected in...

  • Regulation and policy

    How will suppliers fare under Ofgem’s new supplier licensing rules?

    Ofgem published its statutory consultation on the final phases of its Supplier Licensing Review (SLR) on 25 June, intending to take forward the majority of the policy proposals it has previously discussed. The main changes from its earlier position include new thresholds for carrying out Milestone Assessments on domestic suppliers...

  • Regulation and policy

    Back to the Future: long term vulnerability outcomes

    100 days have passed since the UK was placed into lockdown and, as the government looks to continue easing of restrictions, it’s worth reflecting on where we’ve been and start looking ahead to where we’re going. Thanks to papers from Citizens Advice and National Energy Action (NEA) we now have...

  • Home supply and services

    COVID-19-driven changes to electricity Third Party Charges

    The impact of COVID-19 on the energy sector has been a hot topic for the last few months. As we progress further into the UK’s lockdown period we are now beginning to piece together the wider picture of effects across energy Third Party Charges (TPCs). These impacts are expected to...

  • Regulation and policy

    Industry codes flex for COVID-19

    In response to the growing impacts of the pandemic, which has seen electricity demand drop dramatically and industry participants unable to go about many of their usual activities, a series of temporary changes have been introduced across industry codes to mitigate some of the most severe effects. They have all...

  • Regulation and policy

    How will suppliers be required to support their customers post COVID-19?

    On 1 May our latest update to the Energy Supplier Compliance Portal went live and included changes to the compliance landscape seen during February, March and April this year. A notable feature of the update was the regulatory response to COVID-19, which we will delve into a little deeper in...

  • Regulation and policy

    Spring renewal: CMP332 withdrawn pending reinvigoration

    Ofgem’s Targeted Charging Review (TCR) has been a major workstream in the electricity industry since it was kicked off in March 2017. Looking at several elements of the network charging regime that were deemed no longer fit for purpose in the changing energy system, it has wound its way towards...

  • Commercial and market outlook

    Editor’s Pick | Ofgem delays Transmission Demand Residual change to 2022

    The regulator has accepted a request by National Grid ESO (NGESO) to replace the current CUSC proposal to implement the Targeted Charging Review (TCR) decision for a fixed residual transmission network use of system (TNUoS). A new implementation date of 1 April 2022 will replace 1 April 2021. NGESO submitted...

  • Regulation and policy

    Building foundations: Improving outcomes for vulnerable customers now and in the future

    The standards of conduct in the electricity and gas supply licences set out that suppliers must ensure that “each Domestic Customer, including each Domestic Customer in a Vulnerable Situation, is treated Fairly”. This licence condition is principles-based and so exactly how each supplier interprets it is up to them. Although,...