Ofgem is introducing a modification to the Master Registration Agreement (MRA), preventing electricity distributors from registering new customers after a supplier has been issued a customer ban.
In a letter to stakeholders Ofgem’s deputy director of enforcement, Charles Hargreaves, outlined the rationale behind the decision.
Electricity retailers are sometimes subject to customer bans if they are contravening, or are likely to contravene, a relevant condition or requirement. Ofgem can prevent such retailers from taking on new customers until it has improved the service it offers.
Currently, the MRA does not have the facility to suspend customer registrations where Ofgem has issued such a ban.
Specifically, network operators are unable to suspend registrations if their latest use of system invoices have been settled, meaning an energy supplier subject to a customer ban may still be able to register new customers. This is because suspension can currently only be applied in the event of payment default.
As part of its rationale Ofgem said preventing customers from being registered with a supplier which has been prohibited from taking on new customers should result in a “more efficient and coordinated procedure” for changes to electricity supplier, and avoid customers being transferred when they should not be.
The energy regulator added that it considers the implementation of the modification proposal will better facilitate the objectives of the MRA, namely to develop, maintain and operate efficient, coordinated and economical procedures and practices to be followed in relation to changes of electricity supplier.
The new modification will be implemented on 22 July.