MP130 CH order and delivery changes due to COVID-19

Proposer Sasha Townsend
Lead Analyst Alison Beard
Date raised 14/05/2020
StageImplemented
Implementation date 27 May 2020
Latest update This was raised on 14 May 2020 and the Proposer requested this be treated as an Urgent Proposal. This request was presented to the Panel on 15 May 2020. Panel wrote to Ofgem on 15 May 2020 to request Urgency. On 18 May the Authority wrote to the Panel to confirm Urgency had been granted. On Friday 22 May, Change Board voted to recommend the Authority approve this Modification Proposal. The Authority approved this modification on 26 May 2020. It will now be implemented on 27 May 2020.

What is the issue?

The current UK Government social distancing guidance issued to help reduce the spread of the coronavirus (COVID-19) means only essential Communications Hub installations are taking place. There is currently no definitive end date to this guidance.
The manufacturers of Communications Hubs are not UK-based and therefore are not subject to the same social distancing guidance. They are continuing to manufacture Communications Hubs and the DCC’s Service Providers are contractually obliged to receive them. Under the SEC, Suppliers are obliged to receive the deliveries they ordered.
This has resulted in large numbers of Communications Hubs being held by Suppliers. Scheduled deliveries that are required under the SEC to continue mean Suppliers now face the challenge of reduced warehouse capacity and the need to minimise the unnecessary movement of Communications Hub stock.

What is the solution?

The DCC’s proposed solution will introduce new obligations for both the DCC and Parties. It particularly notes a proposed order commitment period for Parties and the DCC’s requirement to hold stock or defer deliveries on behalf of Parties. Legal certainty is needed that Parties will take the minimum order quantities once deliveries can recommence in order to protect the supply chain.

Who is impacted?

Small Suppliers
Large Suppliers
DCC

What SEC documents are affected?

Section F 'Smart Metering System Requirements'

Timeline

14 May 2020
Draft Proposal Raised
15 May 2020
Request for Urgency presented to Panel
15 May 2020
Request for Urgency sent to Ofgem
18 May 2020
Authority grant Urgency
19 May 2020
to
21 May 2020
Refinement Consultation
22 May 2020
Modification Report presented to Panel
22 May 2020
Change Board vote
22 May 2020
Modification send to Authority for decision
26 May 2020
Authority Approve modification
27 May 2020
modification implemented

Modification documents

MP130 Authority Decision letter
27/05/2020
MP130 Refinement Consultation responses
22/05/2020
DCC Temporary Communications Hub Ordering and Delivery Rules
22/05/2020
MP130 Legal Text
22/05/2020
MP130 Refinement Consultation
19/05/2020
MP130 Authority letter approving Urgency
18/05/2020
Request for Urgency for MP130
15/05/2020
MP130 Modification Report
14/05/2020
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