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Updates Following The Green Deal legal Text Implementation To The National Terms of Connection

43 - Updates Following The Green Deal legal Text Implementation To The National Terms of Connection

  • Proposer
  • Proposing Company NPOWER LIMITED
  • Status Closed
  • Urgent No
  • Synopsis

    This issue seeks to develop a solution to a gap in the Green Deal Arrangements legal drafting where a customer on an embedded metering point who has set up a Green Deal finance plan through their Supplier with a Green Deal Provider can be disconnected by a Private Network Operator (PNO). In this scenario the Green Deal Provider will not receive the instalments from the consumer through the payment of their electricity bill thus bypassing the Green Deal Arrangements Agreement (GDAA) between Green Deal Providers and Suppliers for the payment collection of Green Deal charges.

    Background

    Following the implementation of the Green Deal Arrangements on the 24 January 2013 based on a Department of Energy and Climate Change (DECC) directive, the DCUSA Panel sought legal advice from Wragge & Co. to check whether there were any other impacts on the DCUSA from the Green Deal Arrangements and also requested for the DCP 124 Working Group to consider any further impacts.

    The DCP 124 Working Group highlighted that the DNO is obligated under the amendment to the Standard Distribution Licence Conditions at 12.9 (A) to not disconnect an exit point pertaining to a premise with Green Deal Arrangements. The Green Deal Arrangements drafting did not place the same obligation on a Private Network Operator (PNO) who is licence exempt. An issue exists where the Private Network Operator (PNO) boundary is not a Green Deal exit point and the Embedded Metering Points that might have Green Deal arrangements in place may be disconnected by the Private Network Operator (PNO) as the prevention of disconnection has only been legislated for DNOs.

    The DCUSA Panel referred the issue to the DCUSA SIG. The DCUSA Standing Issues Group (SIG) considered that the current National Terms of Connection (NTC) only pertained to customers with metered connections and there is no section of the NTC under which obligations could be statutorily imposed on the PNO. The Domestic Green Deal and Energy Company Obligation in Britain, Monthly Report showed an increase in Green Deal Numbers with approximately 940,000 measures (in 778,000 properties) installed by the end of July 2014 (through ECO, Cashback, Green Deal and the Green Deal Home Improvement Fund). The large majority of installed measures (98 per cent) were delivered through ECO.

    Members considered that a PNO would not have sight of the Green Deal Arrangement in ECOs. There is an information deficit as although there may be sufficient data to know whether a Green Deal is registered to a DNO or an IDNO MPAN, there is not enough information to tell you if it is connected to a licenced Distributor or an exempt Distributor.

    Due to the month on month increase in the consumer adoption of Green Deals highlighted by the Domestic Green Deal and Energy Company Obligation in Britain, Monthly Report and the increase in multiple occupancy buildings with an electricity network operated by a Distribution Exemption Holder (DEH) this issue is set to become much larger and as a result the loop hole in the Green Deal legal drafting has a greater probability of having an impact.

    The progression of DIF 43 was dependent on DECC amending a ‘Green Deal Premises’ definition error. The error was flagged to DECC but DECC did not have a timetable on when to make the amendment. As a result, the proposer agreed to close DIF 43 with the view that the issue can be re-submitted once the definition was amended.