Ofgem has published its new biannual Supplier Performance Report (SPR) which monitors suppliers’ compliance with the environmental and social schemes administered by Ofgem on behalf of the Government.
The data is published to increase transparency of the delivery and administration of these schemes, which are worth more than £6 billion in total per year, to ensure they promote consumer interests.
The SPR also helps to hold suppliers to account for non-compliance. Incidents of non-compliance can increase the cost of delivering and administering the schemes, which can be passed on to consumers through energy bills.
The report shows that energy suppliers generally meet their overriding obligations across the schemes. Most incidents of non-compliance are minor and administrative.
Ofgem uses the scores to work with suppliers to help them to improve their performance. Similarly, if there is a commonality that can be traced back to Ofgem, the organisation will work with suppliers to improve guidance to them.
Over time, we will expect suppliers to improve and deliver the schemes more efficiently. It is preferred that Ofgem help suppliers resolve problems early, rather than let them become bigger problems that might be more expensive and time consuming to fix later. However, if there are repeat occurrences and suppliers do not improve, then stronger action is a possibility.
The report shows supplier performance on scheme compliance for the following schemes:
- Feed-in tariffs (FIT)
- Energy company obligation (ECO)
- Warm home discount (WHD)
- Renewables obligation (RO)
- Government electricity rebate (GER)
- Offtaker of last resort (OLR)
- Fuel mix disclosure (FMD)
Ofgem is the Office of Gas and Electricity Markets. A non-ministerial government department and an independent National Regulatory Authority, Ofgem’s principal objective is to protect the interests of existing and future electricity and gas consumers. This is done through:
- promoting value for money
- promoting security of supply and sustainability, for present and future generations of consumers, domestic and industrial users
- the supervision and development of markets and competition
- regulation and the delivery of government schemes.