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Better project management by Ofgem would have led to a quicker introduction of half-hourly metering for business customers, the Balancing and Settlement Code (BSC) Panel has said.
In a submission to the Competition and Markets Authority (CMA) investigation into the energy market, the BSC Panel highlighted a “reluctance” by Ofgem to use its powers as the regulator as contributing to the challenges faced in introducing half-hourly metering for business customers.
The BSC Panel made the comment in a response to the CMA’s proposal to change the management and governance of market codes, one solution being to give Ofgem more powers to govern.
The panel said it “supported more active participation by Ofgem earlier in the development and assessment of change” but that Ofgem preferred to “encourage the industry to find the best solutions and appropriate timetables”.
Half-hourly metering for business customers in meter profile classes 5-8 was delayed by a year until April 2017 by Ofgem after fears were raised by the BSC Panel about interrupted supplies due to the short implementation period allowed under the original deadline.
Although a delay was raised by the BSC Panel as being necessary in February 2014, it took until July 2015 to be approved as Ofgem was unwilling to grant one without modification to the implementation strategy.
The BSC Panel also does not support further regulatory oversight under the terms of a licence as porposed as an alternative to further powers to Ofgem.
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