Enhanced consumer benefit analysis for modifications

12 November 2020

Since earlier this year, Parties and consumers have benefitted from a more consumer-centric approach to our assessment of change, to help put the consumer at the heart of modifications. We have since held discussions with the other Code Administrators via the Code Administration Code of Practice (CACoP) Forum, to better understand how the modifications we all develop, and the changes we introduce, impact end consumers.

You can now view the guidance on the new consumer benefit analysis approach that the CACoP Forum has developed:

This approach will allow us to better collect evidence about how the modifications we develop and the changes we introduce impact end consumers. This additional information will, in turn, help you in assessing whether a modification should be approved or rejected. All of the Codes are working to implement this enhanced approached when going through our modification processes.

Going forward, SEC Parties, the Change Board and the Authority will be able to review an assessment of the benefits of each modification against five key areas:

  • Improved safety and reliability – will the modification mean that the energy system can operate more safely and reliably now and in the future in a way that benefits end consumers?
  • Lower bills than would otherwise be the case – will the modification lower consumers’ bills by controlling, reducing, and optimising spend, for example on balancing and operating the system?
  • Reduced environmental damage – will this modification support: new providers and technologies; a move to hydrogen or lower greenhouse gases; the journey toward statutory net-zero targets; and/or decarbonisation?
  • Improved quality of service – will this modification improve the quality of service for some or all end consumers, and how?
  • Benefits for society as a whole – will this modification have any other impact on society, such as jobs or the economy?

Proposers and the industry will be encouraged to provide more information regarding the impact of any proposed change on end consumers. Our Change Management team will work with Proposers to understand how their change impacts on these areas. We will also be dedicating more time to this topic as part of Working Group discussions.

The CACoP Forum will review this approach in six months and consider whether further enhancements are needed. You are encouraged to provide feedback on this approach, to help inform this review. We will also continue to look at what we can do further to ensure consumers are at the heart of modifications.

More information on the CACoP can be found on our CACoP webpage. If you have any questions on these enhancements to our modification assessments, please email us at sec.change@gemserv.com.

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