MP171 'Undertaking a FUSA without a Supply Licence'

Following changes to licencing arrangements in 2019, prospective market entrants must now obtain their Supply Licence quite late on in their onboarding process. Without a Supply Licence, Suppliers cannot undertake a Full User Security Assessment (FUSA), preventing them from becoming a Data Communications Company (DCC) User. This could add several further months of delay between gaining a licence and being able to install and support smart metering for consumers. New market entrants are looking to be able to run the FUSA in parallel with the Ofgem licensing process, such that the FUSA is completed subject to successful award of a Supply Licence. This would enable them to be ‘smart from the start’.

A second issue has also been identified by the Proposer. The Smart Energy Code (SEC) currently does not allow for an organisation to withdraw from the SEC whilst holding a Supply Licence. This means the Supplier remains obligated to comply with the SEC, even if it has no registered smart metering points. Consequently, the Supplier could be incurring costs for activities such as security assessments and is trying to exit the smart energy market.

The Proposed Solution for the first issue in MP171 ‘Undertaking a FUSA without a Supply License’ is to provide an option for new market entrants to apply for Supply License and FUSA concurrently, with a clause whereby the FUSA is not granted until the Supply License has been approved. New market entrants cannot be approved for a FUSA without holding a Supply License.

The proposed solution for the second issue in MP171 ‘Undertaking a FUSA without a Supply License’ is to provide an option for Energy Licensees to cease being a SEC Party member.