The voice of the energy industry

Further co-ordination between codes administrators

Code Governance is not the most high profile area for the energy industry, but is an extremely important one. Energy Industry Codes are the rules that licenced bodies are obligated to comply with, are managed by code administrators and each code has its own self-governance arrangements. By and large, changes to the codes are proposed by industry. 

In 2016, the Competition and Market’s Authority (CMA) concluded that there are inefficiencies in the structure and governance framework for the GB energy markets and made several recommendations. Ofgem consulted on these recommendations in January 2017 and Energy UK is in broad agreement with the proposals, however, implementation may take some time. 
 
Energy UK believes there are many voluntary actions that could be made now to make the whole process smoother and more efficient. Energy UK would like to see greater collaboration between code administrators to identify where improvements in efficiency are possible. We believe that many incremental improvements can be taken forward by code administrators now on a proactive, voluntary basis for the benefit of customers and industry.
  • If code administrators are required to implement a similar change across several codes, they should be drafting one change report/change proposal so that industry does not have to read and analyse the various different iterations of the same change being developed by each code administrator.  
  • Given the vast amount of stakeholder group meetings, modification working group meetings, trade association meetings and regulator workshops, industry would appreciate a centrally maintained cross-code industry meeting diary which would ensure that the right people attend meetings to avoid unnecessary duplication of work.
  • Energy UK commends the work that code administrators have done thus far in organizing code modifications into one area (Elexon is holding this information on its website). However, more work can be done to help industry, who is responsible for inputting to changes that will impact on future arrangements, engage with the process effectively. 
If anyone reading this blog finds any of these points interesting and would like to work with Energy UK to develop this further, please drop me a line at This email address is being protected from spambots. You need JavaScript enabled to view it. 
 
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