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Reconciliation of Unallocatable Transactions Review

  • 1
    Initial Assessment
  • 2
    Solution Development
  • 3
    Consultation
  • 4
    Decision
  • 5
    Awaiting Implementation
  • 6
    Implemented
Step 6 of 6
Implemented
Summary
The process for Reconciliation of Unallocatable Transactions is set out in Section 10 of Schedule 11. During the most recent reconciliation delivery (the gas process from July 2024) several areas of improvement were identified, critically a lack of clarity regarding historic Supplier Licences and how to include or exclude them from the calculations. The Code Manager believes that this lack of clarity and past precedent would lead to material impact on one or more Party.

Latest update and next planned activity

Date of latest update
Latest Update
22/09/25 - This Change Proposal has been implemented as part of the MHHS M8 22 September 2025 REC Release.

Impacts Overview

Impacted REC Parties and Market Participants
Energy Supplier
Impacted REC Documents
Schedule 11 - Prepayment Arrangements
Priority and rationale
Standard

Priority last updated on 29 May 2026

Solution development

Problem Statement
During the most recent reconciliation delivery (the gas process from July 2024) several areas of improvement were identified, critically a lack of clarity regarding historic Supplier Licences and how to include or exclude them from the calculations.
Proposed solution summary
  1. A review of the process with specific regard to: - Clarity within the process regarding historic Supplier Licences - Alignment between fuels - Re-introducing an independent audit.

No documents available.

Change Plan

Findings from Information Request were presented at Change Issues Group

Completed

Start:

Due:

Completion:

06 Feb 2025

Original submission

Change details

- - -
14 Nov 2024

Change details

Reconciliation of Unallocatable Transactions Review
The process for Reconciliation of Unallocatable Transactions is set out in Section 10 of Schedule 11. During the most recent reconciliation delivery (the gas process from July 2024) several areas of improvement were identified, critically a lack of clarity regarding historic Supplier Licences and how to include or exclude them from the calculations. The Code Manager believes that this lack of clarity and past precedent would lead to material impact on one or more Party. Given this risk the Code Manager has suspended any further reconciliation runs until the following areas have been review and necessary changes delivered: - Clarity within the process regarding historic Supplier Licences - Alignment between fuels - Re-introducing an independent audit The process has not been reviewed since the REC went live so a general review of the principles should be included in this review.
High risk of financial detriment to one of more REC Party.
A review of the process with specific regard to: - Clarity within the process regarding historic Supplier Licences - Alignment between fuels - Re-introducing an independent audit.
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Related items

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Impacts

No details provided
Ability to pay, Billing accuracy, Trust and confidence
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Schedule 11 - Prepayment Arrangements
Section10 with consideration of sections 8 and 9
No details provided
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Energy Suppliers
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No details provided
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No details provided

Priority & timing

No
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No details provided
Ability to pay, Billing accuracy, Trust and confidence

Activity

Implementation Date has been updated to MHHS Programme Milestone M8 (Code changes delivered).
james.hardy has been allocated as Lead Analyst.
Orphaned SME: Lead Technical Analyst, vaishnsharma have been allocated as SME.
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