CER Update

Industry Governance Group

21st September 2011

Publications

Customer Protection Consultation DecisionPrepayment Metering in the Electricity and Gas Markets (CER/166)

Electricity and Natural Gas Supplier Handbook (CER/11/168)

Demand Side Consultation DecisionProposed Changes to the Winter Peak Demand Reduction Scheme and Powersave Scheme 2011/12 (CER/11/165)

Market Information – Regular Reports ww.cer.ie – elec retail - reports & publicationsChange of Supplier weekly update

Electricity and Gas Customer Disconnections Report July – August 2011

Work streams

Working GroupsPrepayment Meter Project Supplier Group

Forthcoming consultationsMarket Monitoring

Licence Review

Smart metering TimelinesGas trial & Cost Benefit Assessment (CBA) September

Consultation on Smart Metering national rollout design & implementation

October

Decision on Smart Metering national rollout design & implementation

November/December

Debt Flagging for Electricity & Gas Customers – Industry Code

Industry Code - Drafting

• Drafting – Input from– Electricity & Gas Market Participants– Office of the Data Protection Commission (ODPC)

• August GMARG/IGG – High Level Aspects• Draft Code – pre Commission approval

circulated to Industry & ODPC• Commission approval – Re-circulated• Main points presented today

1. Grounds to Raise a Flag (I)• As per decision;

• From when amount fell due, not bill issued, this typically 14 days from bill issued.

Customer Category Customer Category Debt Value & Duration Threshold

Domestic > €250 for > 60 days from due

Small Business Elec (LV-NonMD/DG5)Gas (NDM <73MWh)

> €750 for > 60 days from due - TBC

Medium Business Elec (LVMD/DG6)Gas (NDM >73MWh)

> €1,500 for > 60 days from due - TBC

• Outstanding deposits excluded• Cannot raise a Flag where customer pursuing

complaint re monies owed • Must adhere to Industry thresholds & timings• Must issue a flag where relevant criterion per

customer category has been satisfied.

1. Grounds to Raise a Flag (II)

• Change of Legal Entity (All Customers)– Cannot flag new tenant CoS where debt accumulated

by previous tenant– Elec: CoLE signalled on 110 message

• Losing supplier cannot raise flag • Inferred CoLE – flag not forwarded to new supplier

– Gas: CoLE not signalled → • Options Discussed at August GMARG• ODPC Advice• New supplier ascertain whether new tenant & not yet

signed up – if site flagged – flag ignored.

1. Grounds to Raise a Flag (III)

2. Timings

• Old supplier to raise flag:– Elec: Lists submitted to MRSO by COB on

Mondays & Wednesday– Gas: Within 2 business days

• New supplier to decide action– Elec: Within 2 business days– Gas: Within 3 business days

3. Customer Communication (I)

• Communication Re Flagging Process– ODPC Advice: Domestic Sign Up Process– Customer must be made of aware of debt

flagging at sign up– Notice must be included on domestic customer

application forms – online, paper, phone– Terms & Conditions only not sufficient – Tick Box – read & understood notice– Standard wording, otherwise ODPC sign off

3. Customer Communication (II)

• Communication Re CoS Cancellation• Within 5 business days;• Gaining supplier issue notification in writing:

– CoS request cancelled & why– Advise customer contact current supplier– contact details for MABS or an appropriate

alternative, in the case of domestic customers -TBC.

4. Dual Fuel

• Dual Fuel – Losing Supplier– Can only flag account which meets the industry debt

flagging criterion• Dual Fuel – Gaining Supplier

– Where 1 account is flagged and not the other:– Supplier can only proceed with CoS for non-flagged

account only if obtained customer agreement to switch for one fuel and not dual fuel

– If no agreement obtained, proceed or cancel CoS requests for both accounts

6. Reporting

• CER monitoring debt flagging process• On monthly basis, receive from DSOs

– # CoS requests flagged by losing supplier– # CoS cancellations following flag– Elec Market Only –

• # CoS requests with CoLE• # Debt flags not forwarded to gaining supplier by

MRSO due to inferred CoLE

• CER conduct spot checks from time to time

PPM in Electricity & Gas Markets

Consultation - Background

• Current Economic Climate– CER/10/217 Disconnection CoP Guidelines– Keep disconnection to a minimum: Customer must

be offered a PPM before a Supplier can request a disconnection

– CER/11/106 Debt Flagging Decision– Losing Supplier can flag to gaining supplier where

customer debt above industry thresholds• Suppliers concern over compatibility of

CER/10/217 & CER/11/106

Consultation - Options

• PPM Customer Repaying Debt – 2 Options:• Option A – Status Quo

– Customer ceases paying debt when changes supplier - supplier pursues customer for outstanding debt separately

• Option B – Debt Travels– Customer must continue to pay off outstanding

arrears after they switch supplier

Consultation – Next Steps

• Responses due 15th September• Decision Paper issued asap.