Reviewing the Consolidated Segmental Statements - Our initial proposals
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closed date
- Industry sector
- Supply and Retail Market
We are consulting on proposals to revise Standard Licence Condition (SLC) 19A of the Gas and Electricity Supply Licences and SLC 16B of the Electricity Generation Licence, ‘Financial information reporting’, which requires submission of a Consolidated Segmental Statement (CSS). This requirement currently applies only if a ‘Relevant Licensee’ is a holder of an electricity or gas supply licence (or any Affiliates) granted, or treated as granted, who supplies electricity or gas to more than 250,000 domestic or non-domestic customers and (or any Affiliates) is a holder of a generation licence.
The structure of the retail energy market has changed significantly since this requirement was first introduced in 2009. This means that the information collected through these licence conditions is no longer sufficient or effective in supporting our work in monitoring the market and providing appropriate transparency to the public. It has therefore become necessary for us to review the scope of the licence conditions and the content of the CSS to ensure it can continue to support our work in an evolving energy market.
This policy consultation sets out our proposals on changes to the CSS requirements in the financial reporting licence conditions, which have had some stakeholder input from workshops we held over this winter. Our proposals include future requirements that could apply to suppliers who are not currently captured by the existing licence conditions. We are keen to take a pragmatic approach by drawing, as far as possible, on information that already exists within firms. We also want to be proportionate in terms of volume of information requested and market coverage. We welcome feedback on whether we have got this right. We are seeking views from all interested parties who would like to help shape changes to the CSS. Once the consultation is closed, we will consider all responses.
The document includes:
- Aims of the CSS and this review
- How the retail energy market has changed
- Options considered
- Consultation questions
- Next steps, including how to respond to this consultation, and
- Draft Impact Assessment.
This consultation closes on 12 August 2020. Responses to this policy consultation will inform our policy decision and statutory consultation (including final Impact Assessment), which we intend to publish in November 2020. We will issue a modification decision in early 2021, and the proposed licence modification will take effect not less than 56 days after the modification decision is published. We will consider a transition period, particularly for newly obligated suppliers. If you wish to respond to this consultation, please send your views to css@ofgem.gov.uk by Wednesday 12 August 2020, 11PM.
We are planning to organise a technical workshop to discuss in detail our initial proposals on the CSS with financial and accountancy experts from each of the suppliers. The workshop will be held virtually and further details can be found here.
The status of this consultation has been changed to “Closed (with decision)” as the consultation period has passed. For more information, please see our consultation policy.