Levelisation Reconciliation: Supplier Assurance Requirement
Summary
Ofgem requires suppliers to provide formal audit assurance on customer data submitted for the nil consumption price cap levelisation reconciliation, which launched April 1st 2024. Suppliers must demonstrate compliance with the reconciliation mechanism through independent audits of data quality and process adherence. A follow-up letter will specify submission locations and deadlines.
Why it matters
Administrative oversight rather than structural reform — adds audit requirements to existing reconciliation without changing the underlying mechanism. Treats symptoms of complex cross-subsidisation between payment methods rather than addressing whether such transfers should exist.
Key facts
- •Levelisation reconciliation launched April 1st 2024
- •REC modification R0147 approved, adding Schedule 31
- •Letter sent to suppliers March 11th 2024
- •Formal audit assurance required on customer account data
Timeline
Areas affected
Related programmes
Memo
Levelisation Reconciliation: Supplier Assurance Requirement | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Levelisation Reconciliation: Supplier Assurance Requirement Publication type: Correspondence and other Publication date: 8 April 2024 Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn On the 23rd February 2024, Ofgem published our decision on adjusting the nil consumption price cap level for prepayment (PPM) and Direct Debit (DD) customers from 1st April 2024. This process – known as Levelisation – is supported by a reconciliation by difference mechanism. Alongside our decision we also approved REC modification R0147 which added Schedule 31 to the Retail Energy Code, setting out the reconciliation obligations on suppliers. This letter, sent to suppliers on 11th March 2024, details our expectations of suppliers in relation to the audit and assurance aspects of the Decision. We will require suppliers to provide the Authority with formal assurance on the customer account data which they submit to the reconciliation operator (RECCo), and general compliance with the reconciliation mechanism, via audit. Following the launch of the reconciliation mechanism on 1st April 2024, we will write again to suppliers further detailing our requirements for assurance. That letter will give more detailed guidance on where to submit audit data with more precise deadlines. Main document Letter to energy suppliers on assurance requirements for Levelisation reconciliation [PDF, 164.88KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close