Levelisation Reconciliation: Supplier Assurance Requirement
Correspondence and other
- Publication date
- Industry sector
- Supply and Retail Market
On the 23rd February 2024, Ofgem published our decision on adjusting the nil consumption price cap level for prepayment (PPM) and Direct Debit (DD) customers from 1st April 2024. This process – known as Levelisation – is supported by a reconciliation by difference mechanism. Alongside our decision we also approved REC modification R0147 which added Schedule 31 to the Retail Energy Code, setting out the reconciliation obligations on suppliers.
This letter, sent to suppliers on 11th March 2024, details our expectations of suppliers in relation to the audit and assurance aspects of the Decision. We will require suppliers to provide the Authority with formal assurance on the customer account data which they submit to the reconciliation operator (RECCo), and general compliance with the reconciliation mechanism, via audit.
Following the launch of the reconciliation mechanism on 1st April 2024, we will write again to suppliers further detailing our requirements for assurance. That letter will give more detailed guidance on where to submit audit data with more precise deadlines.