Energy Policy and Regulation News - December 2024

At SSE we fully embrace our national ambitions to meet net zero, and part of that journey is ensuring that non-domestic retail energy market regulations remain fit for purpose. It’s a busy time for the industry, and the SSE Energy Solutions regulation team is working hard to represent the best interest of our partners and customers to Ofgem, the Department for Energy Security and Net Zero (DESNZ) and other regulatory bodies and industry parties.

So what’s been going on over the past few weeks?

Electricity

Market-wide half-hourly settlement (MHHS) update

MHHS aims to deliver one of the largest changes to the retail energy market, implementing half-hourly settlement throughout the electricity market. Settlement reconciles differences between a supplier’s electricity purchases and customer demand. The programme has been running for several years. It’s seeking a delay of several key milestones by around six and a half months, because System Integration Testing is taking longer than expected. We’re awaiting Ofgem’s final decision.

You can find further information about change request “CR055: Amendments to M10 and Corresponding Milestones” on the MHHS website.

Ofgem Call to Action on Radio Teleswitch Service (RTS)

On 3 October Ofgem published a Call to Action on RTS. Aging RTS meters utilise radio signals to change their registers, for example when a meter changes between peak and off-peak modes. RTS was introduced in the 1980s and is now coming to the end of its operational life, which means that the equipment that produces the radio signal can’t be maintained and is shutting down.

Ofgem’s Call for Action has been agreed collectively with the RTS Taskforce, and commits to increasing the pace and uptake of RTS meter exchanges by tackling regional hot-spots and technical challenges, sharing knowledge and expertise to deliver solutions, and collaborating with ‘trusted voice’ organisations like charities, consumer groups and local councils.

The Call to Action recognises that customer action is also essential. To avoid any impact on your heating and hot water after June 2025, you should respond to contact from your supplier.

If you want to learn more about RTS, Ofgem has guidance here and EnergyUK, a Trade Association for some energy suppliers, has guidance here.

Gas

Xoserve Autumn Stakeholder Engagement Event

Xoserve held its latest stakeholder engagement on 5 November, focusing on the key strategic direction of the wider gas market and industry code consolidation over the coming years. Xoserve outlined its view on combining the Uniform Network Code (UNC), Independent Gas Transporter Uniform Network Code (iGT UNC) and some aspects of the Central Data Services Provider (CDSP) provisions into a new Gas Network Code (GNC). High level principles were discussed such as utilising enterprise architecture, and how this will connect with the CDSP platform modernisation planned under Project Trident.

You can find further details on the event on Xoserve’s website, with more details about Project Trident here.

Dual Fuel

Ofgem decision on Guaranteed Standards payment uplift

Following statutory consultation, Ofgem has announced its decision to increase the compensation payment that suppliers must make to customers when they fail to meet any of the Guaranteed Standards of Performance (GSOP). Payments will change from £30 to £40, from 2 January 2025. This increase is only intended to account for inflation since the £30 payment level was set in 2015.

You can find further details on GSOP and Ofgem’s decision announcement on the Ofgem website.

Retail Energy Code (REC) Change of Occupier/Tenancy (CoO/CoT) regulations

The REC is currently consulting on introducing regulations to improve how non-domestic suppliers manage CoO events, which seeks to address industry concerns with the non-domestic CoO process identified by suppliers, Third Party Intermediaries (TPIs) and consumers. These groups have already been paying close attention to this proposal. At the time of writing, it’s out for consultation, due to close 26 November 2026.

There's more information on the REC Portal (login required).

Other market developments

Ofgem closes compliance engagement with Opus Energy in relation to overcharging of customers

Ofgem has recently concluded engagement with Opus Energy on its compliance with Supply Licence Condition (SLC) 0A on treating non-domestic consumers fairly, SLC 4A on operational capability, and SLC 21B on billing based on meter readings. This related to errors on non-domestic customers’ bills between 2003 and 2023. Opus Energy self-reported that it had overcharged 87,825 accounts due to a technical fault in its billing system.

Opus Energy will pay more than £7 million in refunds and goodwill payments, as well as paying into the Energy Industry Voluntary Redress Scheme (EIVRS). Due to the supplier’s collaborative and proactive conduct, Ofgem decided not to take further enforcement action and will continue to collaborate with Opus Energy to ensure that the agreed action plan is fully delivered by June 2025. You can find further details on Ofgem’s website.