SmartestEnergy disappointed over delays to improving settlement accuracy

Smartest logo 1SmartestEnergy has reacted with disappointment to delays to proposed changes to help support greater competition in the business energy market.

Under a modification (P272) put forward by SmartestEnergy to the Balancing and Settlement Code (BSC), the settlement process for larger non-domestic consumers would be based on actual rather than estimated half-hourly consumption.

The change would make the allocation of energy volumes to suppliers more accurate which will in turn promote innovation, strengthen competition and could reduce risks of market entry.

Although Ofgem said it was minded to approve the introduction of the modification next year, it has now asked the Balancing and Settlement Code panel to consult on a revised date of between April and June 2016.

Colin Prestwich, Head of Regulation for SmartestEnergy, criticised the delay:

“Ofgem indicated in October 2013 that they were minded to approve modification P272 for 2015 but now it looks like being 2016. Yet nothing has changed since the minded-to announcement and the uncertainty over DUoS (Distribution Use of System charges) changes which Ofgem has cited for this latest delay has persisted throughout.

“By 2016, this modification will have taken five years to implement which we believe is unnecessarily long.”

The BSC Panel will consider new implementation dates at its meeting on 13 February, and an industry consultation will then be issued.

SmartestEnergy has reacted with disappointment to delays to proposed changes to help support greater competition in the business energy market.

Under a modification (P272) put forward by SmartestEnergy to the Balancing and Settlement Code (BSC), the settlement process for larger non-domestic consumers would be based on actual rather than estimated half-hourly consumption.

The change would make the allocation of energy volumes to suppliers more accurate which will in turn promote innovation, strengthen competition and could reduce risks of market entry.

Although Ofgem said it was minded to approve the introduction of the modification next year, it has now asked the Balancing and Settlement Code panel to consult on a revised date of between April and June 2016.

Colin Prestwich, Head of Regulation for SmartestEnergy, criticised the delay:

“Ofgem indicated in October 2013 that they were minded to approve modification P272 for 2015 but now it looks like being 2016. Yet nothing has changed since the minded-to announcement and the uncertainty over DUoS (Distribution Use of System charges) changes which Ofgem has cited for this latest delay has persisted throughout.

“By 2016, this modification will have taken five years to implement which we believe is unnecessarily long.”

The BSC Panel was considering new implementation dates at its meeting yesterday on 13 February, and an industry consultation will then be issued. Watch this space.

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