Ofgem E-Serve, the delivery arm of the energy regulator, is consulting on its plans to publish a supplier performance report (SPR). The SPR will score energy companies’ non-compliance incidents across the six E-Serve administered schemes that place direct obligations on suppliers.
The schemes covered by the proposed report will comprise:
- The Renewables Obligation;
- Feed-in Tariff;
- Offtaker of Last Resort for Power Purchase Agreements;
- Energy Company Obligation;
- Warm Home Discount; and
- The Government Electricity Rebate.
With a collective value of over £6 billion, the cost of these schemes represents a significant share of consumers’ bills. It is imperative that these schemes operate efficiently to ensure the schemes to deliver its intended benefits. Ofgem recognises the need to embed a culture of compliance within the suppliers. Generally the overall obligations are met during scheme compliance periods but there are some instances with individual elements, for example meeting deadlines and submitting accurate data, are not achieved. By publishing the SPR, it is Ofgem’s intention to increase accountability, improve transparency for consumers and minimise the cost of delivering the schemes. Ofgem recognises that, as suppliers pass on the costs of the schemes to customers, it is important that they are informed of how well different suppliers meet the scheme requirements.
Ofgem has developed a report that records all incidents of non- compliance and assesses the severity. To ensure consistency there is an objective scoring methodology which ensures that Ofgem records incidents in the same way across the schemes. This is supported by a robust governance framework to ensure the methodology is followed consistently. Ofgem proposes to publish the SPR on its website. Consumers, consumer groups and the wider industry will benefit from transparency and it will also be available to inform consumer decisions when switching supplier. Suppliers will be able to see how they are performing in relation to others which will help identify inefficiencies and improve compliance overall.
Ofgem is seeking feedback on the following areas:
- Do you agree that publishing the SPR will promote the interests of consumers?
- Is the website the best forum to publish the results?
- What data do consumers want to be measured and how often should this be published?
The consultation closes on 25th August 2016. We are formulating our response to the consultation and would welcome your feedback to incorporate into this. To have your say, please email the compliance team at firstname.lastname@example.org or alternatively complete the contact form. To discuss this further please call Melanie Kendall-Reid on 01252 87 87 22.