Industry codes and standards

The industry codes are ‘live’ documents, meaning that they can be changed. Modifications can be proposed by code parties and in some cases other interested parties including Citizens Advice and Citizens Advice Scotland.

Each code has a panel or committee that oversees the assessment of proposed changes to that code. A general rule is that changes should only be made if they better facilitate that code’s ability to meet its objectives.

For some proposed changes, the code’s panel will also make the final decision on whether implementation is appropriate, but this is not always the case. Certain modifications require consent from our governing body, the Authority.

Making decisions on code modifications

We will aim to provide an expected decision date for each modification submitted to us for decision. The expected decision date will be based on the importance, urgency and impact of the modification, whilst we will also take into account our strategic priorities. This is intended to provide greater transparency and certainty to industry on when we will aim to make decisions.

See our Code Modification / Modification Proposals Decision Timetable for further details.

Right of appeal on decisions

Under the Energy Act 2004, market participants who wish to challenge our decisions on proposed industry code changes may appeal to the Competition and Markets Authority.

The eligibility criteria for such appeals are determined by the Secretary of State. This designation may be subject to periodic review and change.

The Secretary of State’s current criteria, The Electricity and Gas Appeals (Designation and Exclusion) Order 2014, have determined the codes that are eligible for appeal. This includes:

• Balancing and Settlement Code
• Connection and Use of System Code
• Uniform Network Code
• Distribution Connection and Use of System Agreement (DCUSA)
• Independent Gas Transporters Uniform Network Code (iGT UNC)
• Smart Energy Code (SEC).

There are two specific exclusions from the right of appeal for the designated codes shown above. These exclusions are where we are either:

1. in agreement with the majority recommendation of the code's own governing panel
2. consider that the delay caused by holding an appeal against that decision is likely to have a material adverse effect on the availability of electricity or gas for meeting the reasonable demands of consumers in Great Britain.

Code Administrators are the point of contact for each code. They can provide information including how to become a party to the code (if appropriate) and the rules on modifying the code. Code Administrators have committed to operating their code administration functions in accordance with the Code Administration Code of Practice (CACoP).

Code users and administrators developed the CACoP based on the principles that code administrators and code modification processes will:

• promote inclusive, accessible and effective consultation;
• be governed by processes that are transparent and easily understood;
• be administered in an impartial, objective and balanced manner;
• provide rigorous high quality analysis of any case for modification;
• be cost-effective;
• contain rules and processes that are sufficiently flexible to allow for efficient modification management; and
• be delivered in a manner that avoids unnecessary regulatory burdens.

While the CACoP sets out the principles and processes which code administrators are committed to following, code administrators must comply with the relevant code and associated licences.

Where inconsistencies or conflicts exist between the relevant codes and the CACoP, the relevant code shall take precedence, though it is anticipated that - for those codes that are bound to adhere to the CACoP principles - licensees and other code parties will take all reasonable steps to ensure the two are aligned. 

For more information please see the CACoP website.