The Electricity and Gas (Internal Markets) Regulations 2011

PART 4Standard conditions of electricity supply licences

4.—(1) The standard conditions of an electricity supply licence are amended as follows.

(2) In condition 1 (definitions for standard conditions)—

(a)after the definition of “Deemed Contract” insert—

“Directive means Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC(1);”;

(b)after the definition of “Public Electronic Communications Network” insert—

“Regulation means Regulation 2009/714/EC of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation 2003/1228/EC(2);”.

(3) In condition 5 (provision of information to Authority)—

(a)in the heading, at the end insert “and data retention”;

(b)in paragraph 5.1, after “under any legislation” insert “, including any functions conferred on the Authority by or under the Regulation”;

(c)after paragraph 5.4, insert—

“Data retention

5.5.  The licensee shall keep, for at least five years, the Relevant Data relating to any transactions in electricity supply contracts and electricity derivatives with wholesale customers, transmission system operators or any person who sells electricity to the licensee, which have been entered into by the licensee on or after the day after the day on which the Electricity and Gas (Internal Markets) Regulations 2011 are made.

5.6.  With respect to transactions in electricity derivatives, the obligation to keep the Relevant Data shall only apply once the European Commission has adopted guidelines pursuant to paragraph 4 of Article 40 of the Directive.

5.7.  After receiving a request from the Authority for the Relevant Data, the licensee must give the Relevant Data to the Authority when and in the form requested.

5.8.  Paragraphs 5.5 and 5.7 do not require the licensee to keep Relevant Data in respect of any feed-in tariff arrangements entered into by the licensee in accordance with Condition 33 or 34.

Definitions for condition

5.9.  For the purposes of this condition:

“Relevant Data” means details on the characteristics of all transactions in electricity supply contracts and electricity derivatives with wholesale customers, transmission system operators, or any person who sells electricity to the licensee, including but not limited to the duration, delivery and settlement rules, the quantity, the dates and times of execution and the transaction prices and means of identifying the wholesale customer concerned, as well as specified details of all unsettled electricity supply contracts and electricity derivatives.”.

(4) After condition 14 (customer transfer blocking), insert—

“Condition 14A. Customer transfer

Obligation to complete a Supplier Transfer within three weeks

14A.1.  The licensee must include a term in each Contract that has been entered into with a Customer on or after the day after the day on which the Electricity and Gas (Internal Markets) Regulations 2011 are made, providing that the licensee will complete any Supplier Transfer in accordance with that Contract within 21 days of the Relevant Date unless:

(a)the Customer requests that the Supplier be completed at a later date; or

(b)the Customer notifies the new supplier that he does not wish the Supplier Transfer to take place; or

(c)one or more of the conditions in paragraph 14A.2 applies.

14A.2.  The conditions in this paragraph are that, on or after the Relevant Date:

(a)a Relevant Electricity Supplier has prevented the Proposed Supplier Transfer in accordance with paragraph 14.2(a) to (b) or 14.4(a) to (d) of standard condition 14 (Customer transfer blocking); or

(b)a Supply Exemption Holder is currently supplying electricity to the premises and has objected to the Proposed Supplier Transfer under paragraph 2 of Schedule 2ZB to the Act; or

(c)the licensee does not have all of the information it requires in order to complete the Supplier Transfer, despite having taken all reasonable steps to obtain the missing information from the Customer, and cannot readily obtain that information from another source; or

(d)the Customer is currently taking a supply of electricity through an Exempt Distribution System and the licensee is unable to start supplying gas to the premises because:

(i)a connection which the licensee or the Customer requires to be made in accordance with paragraph 7(2) of Schedule 2ZA to the Act and that physical connection has not yet been made; or

(ii)the distribution exemption holder has specified, in a notice under paragraph 1(6)(a)(i) of Schedule 2ZA to the Act, a metering arrangement which it considers would be required for access to be given to a third party supplier (within the meaning of that Schedule) and that metering arrangement is not yet in place; or

(e)the licensee is prevented from completing the Supplier Transfer due to any other circumstance which is outside the control of the licensee and which it has taken all reasonably practicable steps to resolve.

14A.3.  Where a condition in paragraph 14A.2 applies the Supplier Transfer must be completed as soon as reasonably practicable and, in any event, within 21 days of the date on which the condition ceases to apply (or, if more than one condition applies, when all relevant conditions cease to apply).

14A.4.  Where the condition in 14A.2(b) applies, the licensee must not complete the Supplier Transfer before the objection by the Supply Exemption Holder under paragraph 2 of Schedule 2ZB to the Act is resolved in accordance with paragraph 1(8) of that Schedule

14A.5.  The licensee must not charge a Customer for any costs associated with carrying out a Supply Transfer. The obligation in this paragraph is without prejudice to contractual conditions relating to the termination of a Non-Domestic Supply Contract and to any obligation in the Contract to pay a termination fee.

Obligation to improve switching systems

14A.6.  In order to achieve the objective of completing all Supplier Transfers within 21 days of the Relevant Date, the licensee must take all reasonable steps to improve the systems and processes governing the Supplier Transfer process.

Obligation to cooperate in respect of a Supplier Transfer

14A.7.  The licensee must comply with any reasonable request from another Electricity Supplier or supply exemption holder to provide information or to take any other steps which are reasonably necessary in order to enable that Electricity Supplier or supply exemption holder to complete a Supplier Transfer within 21 days of the Relevant Date.

Information for Authority

14A.8.  The licensee must give the Authority any Information that the Authority reasonably requests for the purpose of establishing:

(a)what steps the licensee has taken in accordance with its obligations under paragraph 14A.5 and/or

(b)the number of Supplier Transfers that have been completed by that licensee within 21 days of the Relevant Date.

Definitions for condition

14A.9.  For the purposes of this condition:

“Relevant Date” means:

“Supplier Transfer” in relation to any premises at which an Electricity Supplier is supplying electricity, means the transfer of responsibility for that supply from that Electricity Supplier to another Electricity Supplier.“Exempt Distribution System”, “Distribution Exemption Holder” and “Supply Exemption Holder” have the meanings given in Part 1 of the Act.”.

(5) After condition 19A (financial information reporting), insert—

Condition 19B.    Prohibition of cross-subsidies

The licensee shall ensure that its business carrying out supply activities shall not give any cross-subsidy to, or receive any cross-subsidy from any interconnection, transmission or distribution business of the licensee.”.

(6) In condition 20 (enquiry service and supply number)—

(a)for the heading substitute “Enquiry service, Supply Number and dispute settlement”;

(b)after paragraph 20.4, insert—

“Dispute settlement

20.5.  The licensee must provide to each of its Customers information concerning his rights as regards the means of dispute settlement available to him in the event of a dispute with the licensee by providing that information on any relevant Promotional Materials sent to the Customer and on or with each Bill or statement of account sent to each Customer in relation to Charges for the Supply of Electricity or annually if the licensee has not sent such a Bill or statement of account to him.

20.6.  For the purposes of this condition:

“Promotional Materials” means documents, other than newspapers, that are handed out or sent directly to consumers and are intended to promote the sale of electricity.”.

(7) After condition 21A (provision of the annual statement of supply to participants of the carbon reduction commitment (CRC) energy efficiency scheme), insert—

“Condition 21B. Billing based on meter readings

21B.1.  If a Customer provides a meter reading to the licensee that the licensee considers reasonably accurate, or if the Electricity Meter is read by the licensee, the licensee must take all reasonable steps to reflect the meter reading in the next Bill or statement of account sent to the Customer.

21B.2.  If the licensee considers that a meter reading provided by a Customer is not reasonably accurate, the licensee must take all reasonable steps to contact the Customer to obtain a new meter reading from him.”.

(8) In condition 22 (duty to offer and supply under domestic supply contract)—

(a)re-number paragraph 22.7 as 22.8;

(b)re-number paragraph 22.6 as 22.7;

(c)re-number paragraph 22.5 as 22.6;

(d)after paragraph 22.4, insert—

“Domestic terms

22.5.  A Domestic Supply Contract or a Deemed Contract with a Domestic Customer entered into or negotiated on or after the day after the day on which the Electricity and Gas (Internal Markets) Regulations 2011 are made must include:

(a)the identity and address of the licensee;

(b)the services provided, including any maintenance services provided, and any service quality levels that are to be met;

(c)if a connection is required, when that connection will take place;

(d)the means by which up to date information on all applicable tariffs and maintenance charges may be obtained;

(e)any conditions for renewal of the Domestic Supply Contract;

(f)any compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing; and

(g)information concerning the Domestic Customer’s rights as regards the means of dispute settlement available to them in the event of a dispute with the licensee including how dispute resolution procedures can be initiated.”;

(e)after paragraph 22.8, insert—

“Provision of Customer Information

22.9.  Where a Domestic Customer requests the licensee to pass on his Historic Consumption Data and/or Supply Number either to the Domestic Customer or to another Electricity Supplier or to any other person, the licensee shall comply with that request free of charge as soon as reasonably practicable.

22.10.  For the purposes of this condition:

“Historic Consumption Data” means:

(9) In condition 27 (payments, security deposits and disconnections)—

(a)for the heading substitute “Payments, Security Deposits, Disconnections and final Bills”;

(b)after paragraph 27.16, insert—

“Provision of final bill

27.17.  Where the responsibility for the supply of electricity to a Domestic Customer transfers from the licensee to another Electricity Supplier or otherwise terminates, the licensee must take all reasonable steps to send a final Bill or statement of account of the Domestic Customer’s account within 6 weeks of the supplier transfer or termination of the Domestic Supply Contract.

27.18.  Where subsequent information becomes available to correct an error in the final Bill or statement of account issued pursuant to paragraph 27.17, the licensee shall send a corrected Bill or statement of account as soon as reasonably practicable after the subsequent information becomes available.”.

(10) In condition 31 (general information for domestic customers), after paragraph 31.3, insert—

“Energy Consumer Guidance

31.4.  Paragraphs 31.5 to 31.8 apply from the date on which the National Consumer Council publishes the first version of the Energy Consumer Guidance and the Concise Guidance.

31.5.  The licensee must publish the latest version of the Energy Consumer Guidance and the Concise Guidance on its website within 28 days of the date on which that version is published by the National Consumer Council.

31.6.  The licensee must inform each of its Domestic Customers how the Energy Consumer Guidance and the Concise Guidance can be accessed by:

(a)providing each new Domestic Customer whose premises it supplies with electricity under a Contract or a Deemed Contract with this information when the licensee first begins to supply electricity to the Domestic Customer’s premises or, in the case of a Deemed Contract, becomes aware that it is doing so;

(b)including this information in or with each Bill or statement of account sent to a Domestic Customer in relation to Charges for the Supply of Electricity or annually if the licensee has not sent such a Bill or statement of account to him; and

(c)providing this information to a Domestic Customer as soon as reasonably practicable after he requests it.

31.7.  The licensee must provide a copy of the Concise Guidance to a Domestic Customer annually.

31.8.  For the purposes of this condition:

“Concise Guidance” means the concise guidance published by the National Consumer Council under section 19A of the Consumers, Estate Agents and Redress Act 2007.

“Energy Consumer Guidance” means the energy consumer guidance published by the National Consumer Council under section 19A of the Consumers, Estate Agents and Redress Act 2007.”.