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Rising number of regulatory obligations

The energy and utilities industry has wide-ranging regulatory obligations and industry codes that market participants must adhere to. The enforcement work associated with these can result in large fines and penalties in addition to reputational risk. Ensuring compliance is often an extensive and resource intensive exercise (with potential additional operational costs). We can help you ensure adequate preparation for industry and regulatory audits, because at Engage we have a wealth of expertise and experience in these areas, so our contribution will be of value to your organisation from the outset.

For rapidly growing Suppliers, adhering to regulatory obligations can become an immediate challenge – regulatory obligations and their complexity increases as your customer numbers grow. Additional regulatory obligations (such as financial information reporting, Green Deal arrangements and specific smart metering roll-out programme requirements) come into effect once your supply business reaches the Ofgem threshold of 250k domestic customer accounts.

At Engage, our experience and expertise allows us to help you with a number of market readiness activities for these additional obligations. For example, we can support with the development (and subsequent implementation) of a regulatory compliance strategy/framework – this would allow you to monitor regulatory change and impact assess that change on your business (be it from a systems, processes or people perspective). In addition, our input would include recommendations for dealing with these changes as well as potential operational support to deliver them.

We have helped our clients ensure methods, processes and systems used to fulfil their obligations are compliant, and have provided checklists and associated recommendations for improvement. Using our skilled resource, in depth knowledge and practical experience, we were able to make a number of recommendations that helped achieve process improvement and risk mitigation.

An Energy company, performing the role of ‘shipper’ to a large power station had outsourced a number of its obligations. Engage was tasked with undertaking a compliance audit of those obligations. Our approach was to check the performance of both parties against the individual Licence Conditions, and to review the Commercial Energy Services Contract and related Procedure documents in line with this. We found that the Shipper is fully compliant with 13 Licence Conditions meaning there are no risks associated with them and no further actions to be taken while 6 Conditions require attention and general awareness of possible future actions to be taken.