P366 Report Phase Consultation
P366 will amend how Supplier Charge SP08a is applied to Non Half Hourly non-domestic Meters that are hard-to-read (HTR). It is believed that applying Supplier Charge SP08a to HTR Metering Systems is anti-competitive and limits consumer choice.
Status
Who will this impact?
The P366 Assessment Report was presented to the Panel on 9 May 2019 and the Report Phase consultation, seeking views on the Panel’s initial recommendations to the Authority, was issued on 17 May 2019 to 3 June 2019.
The BSC requires that, in relation to each GSP Group, the percentage of total energy attributable to a Supplier, in respect of Non Half Hourly (NHH) Metering Systems, settled on the basis of Annualised Advances (AA) for each Settlement Day shall be not less than 80% for the Third Reconciliation (R3) Volume Allocation Run (VAR) and 97% for the Final Reconciliation (RF) VAR. Any underperformance against these targets is subject to a Supplier Charge. This is monitored and reported in the Performance Assurance Reporting and Monitoring System (PARMS) using PARMS Serial SP08a.
Due to the nature of the NHH performance requirements, small Suppliers are most susceptible to HTR related SP08a Supplier Charges. The proposer believes they are unfairly disadvantaged and are less able to compete competitively for customers with HTR sites. This is because, in contrast to large Suppliers, the inability for small Suppliers to absorb HTR sites into their Settlement performance means that they must price the SP08a Supplier Charge cost into their Supply contract, which makes their prices less competitive.
The P366 Proposed solution will set the SP08a Supplier Charge for PARMS Serial SP08a for R3 and RF are set to £0.00 for all Suppliers, and does not require the declaration of HTR Metering Systems