Utility Week

8 | 25TH - 31ST OCTOBER 2019 | UTILITY WEEK Policy & Regulation This week DNOs avoid penalties for connection issues Ofgem decides it will not consult on potential penalties after largely positive customer feedback Ofgem has decided not to penalise any of the Distribution Network Operators (DNOs) for network connection issues over the past year. The regulator has issued an update on the Incentive on Connections Engagement (ICE) programme, which looked at how the DNOs have delivered for larger connections customers in particular. It found that most customers were satisfied with the performance of the DNOs and that while there were some areas of concern, feedback had largely been posi- tive. Therefore, it has decided not to consult on potential penalties. The decision was taken a•er considering submissions from DNOs which proved they had engaged effectively with connection customers; developed plans which ade- quately address all reasonable requests; and delivered on these. The concerns raised were around the following areas: • Lack of notification on ICE plans; • Difficulties signing up for communications; • Request for additional engagement methods – Ofgem pointed to demand for areas such as webinars and social media as points of communication; • More quantitative outputs – some stakeholders said DNOs had not provided quantitative key performance indicators in their ICE work plans, with outputs seeming vague or generic; • The connections process. JW ENERGY Ofgem widens Utility Warehouse probe Ofgem has widened the scope of its investigation into the way energy supplier Utility Warehouse manages customers in debt. The energy regulator revealed that it is now investigating how the supplier reports on its per- formance in relation to dealings with domestic customers. This is in addition to investigating whether Utility Warehouse puts in place "appropriate repayment options" for customers in debt. Ofgem said: "This includes whether it does enough to try and contact customers in or at risk of debt and to establish with them manageable repayment plans based on their ability to pay, as Ofgem's rules require." The regulator stressed that the widening of the probe, which began in June last year, does not imply that it has made any find- ings about non-compliance. ENERGY Code administrators are losing trust Satisfaction with energy code administrators has fallen, a new survey has shown. Ofgem has published the findings of a review by research agency Future Thinking, based on interviews conducted between May and August with 200 industry stakeholders. The report found that a•er a spike in satisfaction in 2018, only 63 per cent of respondents were satisfied with the perfor- mance of the code administra- tors, compared with 70 per cent in the two previous years. Support received and ease of understanding of the codes were named as key areas of decline. The report concluded it was essential that code adminis- trators improve the way they provide information. ENERGY Regulator proposes checks on suppliers Ofgem is proposing to introduce new checks on suppliers to create more accountability in the market and to require more "responsible and appropriate" behaviour. The energy regulator opened a consultation on 22 October and proposed rules that would allow it to request independent audits of suppliers' customer service operations and financial status. As part of this, new checks would be introduced for growing suppliers before they hit certain thresholds of customer numbers, proposed to be 50,000, 150,000, 250,000 and 500,000-800,000 customers. These would require them to have the operational capability to effectively serve existing customers before they could take on further customers. Day in the sun: most customers were satisfied Political Agenda David Blackman "Leadsom is making the 2050 target the top priority" Lord Kerslake, former head of the civil service, has a quip about Parliament's current obsession. Riffing on one of the many catchphrases from the 1990s TV comedy The Fast Show, the peer likes to tell audiences: "Today we are mostly discussing Brexit, in fact every day we are mostly discussing Brexit." And that was still the case this week, which saw the first Saturday sitting of Parliament since 1982's Falklands invasion. she is making efforts to meet the 2050 target the top priority in her new portfolio. Less heartening though may be the news, which also emerged during the hearing, that the energy white paper will not be published until early next year. This means it will appear at least six months later than promised. The upside of the delay is that the government will be able to properly take on board the results of its recent consultation. However last week saw a rare opportunity for MPs to discuss something other than Brexit when recently appointed busi- ness secretary Andrea Leadsom had her first outing in front of the select committee that scruti- nises her department. Leadsom has kept a low profile on the energy and climate change front since she took the reins at BEIS in the summer. But last week's appearance will have been heartening for those who want to see the government act on its pledge to take action on the net zero emissions target, endorsed by Parliament over the summer. Leadsom told the committee

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