Customer Supply Continuity Plans Licence condition comes into effect

What are Customer Supply Continuity Plans?

What should be in a Customer Supply Continuity Plan?

The primary objective of a Customer Supply Continuity Plan is to improve the experience of supplier failure from a customer’s perspective.

In the event of an energy supplier failing the plans should allow for an orderly exit from the market than seen previously.

The plans should detail how customers of a failed supplier will be transitioned to a new supplier in an orderly fashion to allow them access to the right customer information quickly and easily in the event of a Supplier of Last Resort (SoLR) situation. There is some concern over how effective the plans may be if the failing supplier has created a poor plan.

For an energy supplier to comply with the licence condition they need to ensure that their plan reflects the size and complexity of their business and they also need to be produced with appropriate oversight from senior management.

Another aspect of the licencing conditions changes is that senior management will be held responsible for a supplier’s failure and as such they should have full and direct involvement in the creation of the plans.

Also read: Gain your industry qualifications with Dyball Associates

The Licencing conditions

Condition 19C (electricity) / 19E (gas). Customer supply continuity plans 

19C.1 / 19E.1 The licensee must ensure it has prepared and has in place, at all times, a customer supply continuity plan, which sets out the licensee's strategy for safeguarding the continuity of supply for its customers in the event of its exit from the market (a Customer Supply Continuity Plan). 

19C.2 / 19E.2 The licensee must ensure that the information provided in its Customer Supply Continuity Plan is accurate and is prepared with due skill and care. 

19C.3 / 19E.3 The licensee must ensure that the information contained in its Customer Supply Continuity Plan is maintained and kept up-to-date at all times.

Increased Oversight

Ofgem hopes that the introduction of the Customer Supply Continuity Plans will allow them to better assess whether appropriate arrangements are in place to ensure a smooth transition in the event of a supplier failing.

The plans should be created regardless of whether the supplier feels they are close to exiting the market to ensure they carefully consider what arrangements would be needed to ensure an efficient exit well ahead of these arrangements ever being required in practice.

Our team of energy market consultants can guide you through the steps to enter the UK energy market.

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates Ltd can help.

Further Reading

Ofgem lays out plans for energy suppliers to automatically refund surplus credit

Why are Challenger Energy Suppliers growing in popularity and how can they stay competitive?

How can smaller energy suppliers be competitive?

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