To keep prepayment meter (PPM) bills from rising after the Energy Price Guarantee (EPG) ended on 31 March 2024, Ofgem introduced non-volumetric PPM Levelisation, which discounts standing charges. Starting 1 April 2024, Ofgem requires Retail Energy Suppliers to undergo strict audits to comply with this new system
If you are an Energy Supplier offering a PPM service you will need to provide Ofgem with formal assurance on the customer account data, which you submit to the Levelisation reconciliation operator (RECCo), and general compliance with the reconciliation mechanism. You will need to undergo an independent audit, covering the first six months. This audit must follow Ofgem’s Agreed Upon Procedures (AUPs). Suppliers need to inform Ofgem of the audit results through a letter detailing each audited process, recommendations, exceptions, and auditor independence by Monday, 16 December 2024.
Why This Matters
- Regulatory Compliance: Meeting Ofgem’s audit requirements is crucial to avoid enforcement actions and align with industry standards.
- Data Integrity: Accurate and complete data submissions are vital for the reconciliation process.
- Operational Efficiency: Strong audit processes help spot and fix issues early, ensuring smooth operations and reliable service.
What You Need to Do
- Understand the Requirements: Get familiar with Ofgem’s AUPs, including data completeness, accuracy, and system processes.
- Prepare for the Audit: Make sure your data management systems are up to standard. Verify data accuracy, manage discrepancies, and keep thorough records.
- Engage Qualified Auditors: Your auditors must be competent, independent, and follow ISRS 4400 or an equivalent standard.
Next Steps
Gemserv’s energy audit experts are ready to help you navigate these requirements. To learn more about our comprehensive Gemserv Energy Audit services, contact us today to discuss how we can support your audit needs and ensure your compliance with Ofgem’s requirements.
