SECMP0043 Modification to Services Force Majeure Provisions

Proposer Bushra Ali
Lead Analyst SEC Change
Date raised 18/11/2017
StageImplemented
Implementation date 23 April 2019
Latest update This modification was implemented on 23 April 2019.

What is the issue?

In April 2018, Ofgem implemented the Data Communications Company (DCC) Operational Performance Regime (OPR) through modification to the Smart Meter Communication Licence (DCC Licence). The key principles underpinning the design of the OPR performance measures are consistent with the Performance Measures in SEC Section H13. The OPR places performance incentives on the DCC by placing 100% of the value of DCC’s smart meter related margin at risk.

Following a review of current regulation, the DCC believes that neither the OPR or the SEC provide an application process for the DCC to apply for relief for ‘all categories’ of exceptional events (events outside the DCC’s control). In the absence of a process for a broader concept of exceptional events in the SEC, the DCC believes there is a risk that it will be unfairly penalised under the OPR for delayed or non-delivery of DCC services due to events outside its control.

An application process does exist under SEC Section M3 for Services Force Majeure (FM) under which the DCC can apply to the SEC Panel for relief for delayed or non-delivery of DCC Services. However, Services FM is narrowly defined and only applies to a limited number of exceptional events, such as acts of terrorism or war; it does not apply to all events outside the DCC’s control.

What is the solution?

The proposed solution is to introduce a new application process under SEC Section H, which the DCC and the Panel would follow if the DCC wishes to claim relief for exceptional events for its OPR reporting. This new process is distinct from the existing Services FM application process. It introduces a broader concept of ‘exceptional event’ under a new definition of OPR Exceptional Event and sets out the relief application process. This solution would apply only to the DCC’s reporting under the OPR, and not to the DCC service provider reporting under SEC Section H13.

Who is impacted?

DCC

What SEC documents are affected?

Section A 'Definitions and Interpretations'
Section H 'DCC Services'
Section M 'General'

Timeline

30 Nov 2017
Raised
08 Dec 2017
IMR presented to Panel
22 Feb 2018
to
15 Mar 2018
First Working Group Consultation
07 Nov 2018
to
28 Nov 2018
Second Working Group Consultation
14 Dec 2018
Modification Report presented to Panel
17 Dec 2018
to
10 Jan 2019
Modification Report Consultation
23 Jan 2019
Change Board vote
05 Apr 2019
Authority decision
23 Apr 2019
Implemented

Modification documents

SECMP0043 Authority Decision
05/04/2019
SECMP0043 Change Board Vote
23/01/2019
SECMP0043 Modification Report
23/01/2019
SECMP0043 Modification Report Consultation responses
11/01/2019
SECMP0043 Modification Report Consultation
17/12/2018
SECMP0043 WGC
07/11/2018
Collated Industry Consultation Responses
22/03/2018
Industry Consultation
22/02/2018
SECMP0043 - Proposed Legal Text
19/12/2017
SECMP0043 - Modification Proposal Form
18/12/2017
SECMP0043 - Initial Modification Report
12/12/2017
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