Retail Market Assurance Services for the Irish Electricity Market

Niemesh AminIGG 5th July 2010

niemesh.amin@gemserv.com

Agenda

• June MDU Update

• Assurance Activities

• Customer Objections Process

• Erroneous Transfers

June MDU Update

June MDU Update

• The cut-over weekend activities were completed

• The MPCC upgrade to v16.0 is in the final stages to be completed

• Gemserv are to contact Market Participants and gain feedback on their views in relation to the MDU programme

June MDU Update

• For project closure the next phase is to conduct a lessons learned review with RMDS and ESBN for actions to be considered in future releases

• Gemserv will collate this information and present their findings at the next IGG for discussion

Assurance Activities

Assurance Activities

• Finalise and complete the June MDU activities

• Liaise with a existing Supplier to extend their operations into a new market segment.

• Develop a presentation to outline the Change of Supplier objections process in different Utility Markets that Gemserv have experience in

• Conduct research and present statistics on the number of Erroneous Transfers for other markets

Customer Objections Process

Customer Objections Process

• An outline of the Customer Objections process for the following industries

– GB Electricity

– ROI Gas

– GB Gas

– Scottish Water

Customer Objections ProcessGB Electricity: Old Supplier objects and is subsequently removed

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

Notify Customer

Within 5 BDsX

CoS

Customer Objections ProcessGB Electricity: Old Supplier objects and is not resolved

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

Notify Customer

>5 BDs

X

X

Customer Objections ProcessGB Electricity

• During CoS process the Inbound Supplier can withdraw their registration request

• Objections by the Outbound Supplier can be raised during the CoS process.

• If the objection is not resolved within 5WDs the CoS process is stopped.

• Erroneous Transfer process initiated if wrong MPRN has been used.

• Old Supplier bias

Customer Objections ProcessGB Gas: Old Supplier objects and is subsequently removed

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

D-7

XCoS

Customer Objections ProcessGB Gas: Old Supplier objects and is not resolved

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

>D - 7

X

X

Customer Objections ProcessGB Gas

• Similarities to GB Electricity

• During CoS process the Inbound Supplier can withdraw their registration request

• Objections by the Outbound Supplier can be raised during the CoS process.

• If the objection is not resolved within D-7 the CoS process is stopped.

• Old Supplier bias

Customer Objections ProcessROI Gas: CoS Completed and Old Shipper raises an objection

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

Customer Objections ProcessROI Gas

• During CoS process the Inbound Shipper can withdraw their registration request

• Objections by Outbound Shipper can only be raised after CoS has been completed

• Change of Shipper Correction/amendment process is the equivalent of the erroneous transfers process

• Market is in early stages of retail competition – processes implemented to promote CoS?

• New Supplier bias

Customer Objections ProcessScottish Water: Old Supplier raises an objection

CoS

New SupplierOld Supplier

Objection

New SupplierOld Supplier

Within 5 BDs

X

Customer Objections ProcessScottish Water

• During CoS process the Inbound Supplier can withdraw their registration request

• Objections by the Outbound Supplier can be raised during the CoS process.

• The objection must be submitted within 5WDs of loss notification.

• CoS process is stopped as soon as an objection has been raised – resubmit registration request for Supply point.

• No erroneous transfer process exist

• Old Supplier bias

Customer Objections ProcessSummary…

• A very high level overview of the processes outlined, considerations to process should include

– the level of market maturity

– different legislation for different jurisdictions

– technical, data and process infrastructure

• Most objection processes outlined are Old Supplier biased

• Erroneous transfers are still a “feature” of operations

Erroneous Transfers

Erroneous TransfersBackground

• Research conducted to provide a view of the number of erroneous transfers in GB Gas and Electricity.

• The GB Electricity and Gas Markets opened in 1998 for domestic competition

• ROI Market opening took place in 2005 and the statistics presented reflect the similar timeframe of Market maturity

• The sample of data is from March 2002 – August 2003.

Erroneous TransfersBackground

• Erroneous Transfer (ET): occurs where a customer had been transferred to a Supplier without a valid contract being in place

• Does not include Customers who have changed their mind after switching

• In 2002 Ofgem implemented an Erroneous Transfer Customer Charter that outlined Supplier performance levels in relation to resolving ETs and introduced a voluntary compensation scheme for ET Customers

Erroneous TransfersBackground

• The primary root causes identified by Ofgem for ETs were:

– proven forgery

– Suspected misleading information, fraudulent practice and/or training issues

– Incorrect MPAN/MPRN selected

– Cancelled contract not actioned

Erroneous TransfersStatistics

• Electricity

– August 2002: 3.9% of total transfers

– August 2003: 1.35% of total transfers

• Gas

– August 2002: 2.5% of total transfers

– August 2003: 1.14% of total transfers

Erroneous TransfersFigure 1: ET Rate in domestic Gas and Electricity Markets (March 2002 – August 2003)

Erroneous TransfersFigure 2: ET root causes in domestic Gas and Electricity Markets (March 2002 – August 2003)

Gas Electricity

Erroneous TransfersStatistics

• The sample timeframe reviewed was based upon the implementation of the Erroneous Transfer Customer Charter protocol and a sufficient timeframe elapsed to demonstrate the impact.

• The trend of ETs were reduced as the majority of Suppliers adhered to the protocol.

• Upon subsequent review of the protocol, Ofgem reported that Suppliers had made improvements to their operational processes.

Erroneous TransfersPotential further analyses…

• Compare the current trend of ETs in ROI against the GB Market

• Gain an understanding from a Suppliers perspective of the possible route causes of ETs

• Review the Market processes for CoS and determine if changes are required to be implemented

Reference

Ofgem Market Report:

Erroneous Transfer Customer Charter – Review Document

• http://www.ofgem.gov.uk/MARKETS/RETMKTS/COMPL/CUSTTRANSF/Documents1/5020-Erroneous_Transfer_Review_31oct03.pdf

Questions & Discussion