Prepayment Levelisation
Summary
This Change Proposal seeks to introduce the necessary governance and charging arrangements into the Retail Energy Code, to reconcile the impact on Domestic Energy Suppliers of levelling the cost of standing charges to Domestic Consumers paying by means of a Prepayment Meter with those paying by Direct Debit. This proposal is being raised on a contingent basis pending the decision of the Authority on whether to modify the standard conditions of the Gas and Electricity Supply Licences to levelise standing charges. That decision is expected in January 2024. This Change Proposal is being progressed in anticipation of the reconciliation of levelisation costs being administered by the Retail Energy Code Company.
Latest update and next planned activity
Date of latest update
Latest Update
This change was implemented as part of the the Extraordinary release on 28 March 2024. *This Change Proposal has no impacts on Market-wide Half Hourly Settlement
Impacts Overview
Priority and rationale
Priority last updated on 29 May 2026
Solution development
Problem Statement
Ofgem are working towards and consulting on the design and implementation of a levelisation scheme to align the standing charges of Domestic Consumers who pay through a Prepayment Meter with those who pay via DD. RECCo will be the delivery partner for this scheme, however, the requirements and arrangements for the scheme need to be established in the REC.
Proposed solution summary
- As a Domestic Consumer, I want to be charged the same standing charges regardless of whether I pay by DD or have a Prepayment Meter.
- As an Energy Supplier, I want my obligations regarding data provision to be clear so that I can provide accurate data. As an Energy Supplier, I want there to be a fair reconciliation mechanism calculates, reports, invoices and credits my organisation with the outcome of applying the payment levelisation methodology. As an Energy Supplier, I want the arrangements for the payment mechanism and terms, charging arrangements and invoicing to be clearly set out in the REC, so I can meet my obligations and have confidence in how the scheme operates.
- As RECCo, I want my responsibilities in relation to the development and administration of the levelisation scheme to be clearly set out in the REC so that I can successfully deliver the scheme for the industry. As the REC Code Manager, I want the levelisation scheme arrangements to be clearly set out in the REC, so that I can fulfil my role in administering and assuring the scheme.
No documents available.
Change Plan
Solution development completed
Completed
Start:
22 Sep 2023Due:
12 Oct 2023Completion:
12 Oct 2023Impact assessment period started
Completed
Start:
12 Oct 2023Due:
13 Oct 2023Completion:
13 Oct 2023Impact assessment completed
Completed
Start:
13 Oct 2023Due:
08 Nov 2023Completion:
08 Nov 2023Preliminary Change Report issued
Completed
Start:
08 Nov 2023Due:
17 Nov 2023Completion:
17 Nov 2023Responsible Committee review of Preliminary Change Report
Completed
Start:
17 Nov 2023Due:
21 Nov 2023Completion:
21 Nov 2023Consultation started
Completed
Start:
21 Nov 2023Due:
22 Nov 2023Completion:
22 Nov 2023Consultation closed
Completed
Start:
22 Nov 2023Due:
13 Dec 2023Completion:
13 Dec 2023Final Change Report issued
Completed
Start:
13 Dec 2023Due:
12 Jan 2024Completion:
11 Jan 2024Responsible Committee decision
Completed
Start:
12 Jan 2024Due:
16 Jan 2024Completion:
16 Jan 2024Authority Determination requested
Completed
Start:
16 Jan 2024Due:
17 Jan 2024Completion:
17 Jan 2024Original submission
Change details
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22 Sep 2023
Change details
Prepayment Levelisation
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Priority & timing
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Activity
Proposed solution summary changed to As a Domestic Consumer, I want to be charged the same standing charges regardless of whether I pay by DD or have a Prepayment Meter.As an Energy Supplier, I want my obligations regarding data provision to be clea…
Proposed solution summary changed to As a Domestic Consumer, I want to be charged the same standing charges regardless of whether I pay by DD or have a Prepayment Meter.As an Energy Supplier, I want my obligations regarding data provision to be clear so that I can provide accurate data. As an Energy Supplier, I want there to be a fair reconciliation mechanism calculates, reports, invoices and credits my organisation with the outcome of applying the payment levelisation methodology. As an Energy Supplier, I want the arrangements for the payment mechanism and terms, charging arrangements and invoicing to be clearly set out in the REC, so I can meet my obligations and have confidence in how the scheme operates.As RECCo, I want my responsibilities in relation to the development and administration of the levelisation scheme to be clearly set out in the REC so that I can successfully deliver the scheme for the industry. As the REC Code Manager, I want the levelisation scheme arrangements to be clearly set out in the REC, so that I can fulfil my role in administering and assuring the scheme..
Show moreImplementation Date has been updated to 28 Mar 2024.
harriet.truss has been allocated as Lead Analyst.
Orphaned SME: Lead Technical Analyst, amoden have been allocated as SME.