MP159 Credit Cover Review

The Data Communications Company (DCC) and the Smart Energy Code (SEC) Panel have reviewed SEC Section J3 ‘Credit Cover’ and have identified several areas that would benefit from further clarification. There has been some misinterpretation of the current SEC legal text outlining the Credit Cover processes. This has led to increased risk of cost socialisation. The DCC and SEC Panel propose to update Credit Cover processes to clarify obligations on parties and reduce the opportunity for misinterpretation, as well as to address inefficiencies.

The Proposed Solution is to address the identified inefficiencies within current process and also to rewrite certain clauses in Plain English to mitigate the risk of misinterpretation by SEC Parties and the DCC. This modification will impact Large and Small Suppliers, Network Parties and the DCC. The cost of this modification is anticipated to be £600 to amend the SEC.

Large Suppliers
Small Suppliers
Electricity Network Parties
Gas Network Parties
DCC

SEC Section A 'Definitions and Interpretation'
SEC Section J 'Payment of Charges'