Two levies related to the performance of suppliers under the balancing and settlement code (BSC) have been temporarily suspended by Ofgem due to the coronavirus pandemic.
The supplier charges in question are incurred by those who fail to meet the required half hourly and non-half hourly settlement performance standards of the code.
Both charges have been set to £0 from the March 2020 performance assurance reporting and monitoring system (PARMS). It aims to support suppliers’ cashflow, enabling them to concentrate on business-critical activities and will remain until further notice.
Ofgem referenced the unprecedented challenges being faced by the electricity market due to the pandemic, adding that social distancing measures introduced by the government mean suppliers may be unable to obtain meter readings through usual activities and therefore may be exposed to additional charges.
The BSC Panel, which raised the modification, further explained that its implementation will help suppliers by ensuring resources can be allocated to other areas of the settlement, without the financial burden imposed by the supplier charges.
Under the modification, the BSC Panel has the power to reinstate the charges after a period of suspension following changes to government guidelines and restrictions which would allow for normal settlement operational activities to resume. Parties would be provided with three months’ notice of charges being reinstated.