SEC Newsletter 16 May 2019

Hello,

SEC Parties keep a look out for a ‘save the date’ winging its way to your inboxes this week! Our annual SEC Party Engagement Day is on 11 July, which will give you the chance to meet SEC Panel members, ask any burning questions, and hear from industry experts about relevant updates and developments. The agenda is yet to be finalised, so if you have any suggestions for topics to include, please get in touch.

In other news, there are several reports and consultations this week that may be of interest to you. Yesterday we wrote to SEC Parties requesting their consent to participate in the forthcoming Ofgem Code Administrator Performance Survey – for more information see below.

Lastly, a reminder that SECAS are here to help you with any questions or queries. Our Helpdesk is available Monday to Friday 9am-5pm. You can contact us by email at SECAS@gemserv.com or call on 020 7090 7755.

Would you like to join the SMKI PMA?

The Smart Metering Key Infrastructure Policy Management Authority (SMKI PMA) is a SEC Panel Sub-Committee. It gains assurance of DCC operations of SMKI Services and governs the SMKI document set.

SMKI PMA members serve a term of 24 months. The current term for three members ends in July, therefore we are calling for nominations to fill the following seats:

• One Large Supplier;
• One Small Supplier; and
• One Electricity Networks.

Please see the nomination form for further details. If you would like to take this opportunity to nominate yourself, or someone else, please complete and return the form to SECAS@gemserv.com by 3 June 2019.

SEC Parties – Invitation to partake in the Ofgem Code Administrator Performance Survey

SEC Parties are invited to participate in the annual Ofgem Code Administrator Performance Survey specifically in relation to the Smart Energy Code (SEC).

Thank you to those who have already responded. If you received the invitation and have not yet replied, please do so by 20 May 2019.

Similarly to previous years, Ofgem has commissioned Future Thinking, an independent research agency, to undertake a cross-code survey on the performance of Code Administrators. The main objectives for this survey are to:

• Identify best practice in how the Code Administrators are carrying out their role; and
• Collect research data on the nature of the service, its efficiency and levels of satisfaction, as well as the nature of any issues. The result of last year’s survey is available here.

If you would like further information on this survey, or have any questions, email SECAS@gemserv.com.

Open DCC consultations

The DCC are consulting on the following;

• Minor changes to the Transition and Migration Approach Document (‘TMAD’) Closing date: 24 May.
  The TMAD sets out the detailed technical and procedural requirements related to Migration of SMETS1 devices.

• Proposed Amendments to the Intimate Communications Hub Interface Specification (ICHIS) Closing Date: 24 May
  • Move the Radio Frequency Noise limits into a new Appendix B;
  • Create a new ICHIS test specification;
  • Add an Appendix A for Communication Hub Antenna Structure (CHAS) information.

• System Capacity Testing Approach Document (SCTAD) for SMETS1 Services DRAFT v1.0 Closing date: 31 May.
  The purpose of System Capacity Testing is to demonstrate that the operational performance of the Modified DCC Total System is not adversely affected by the introduction of SMETS1 Services, and that the SMETS1 Services will operate as intended. The intent is that the SCTAD will apply to all Operating Capabilities, but initially will focus on Interim Operating Capability.

The DCC encourage your responses to be sent to consultations@smartdcc.co.uk.

Alt HAN Consultation on Supplier Contract

The Alternative Home Area Network Company (AltHANCo) has issued a consultation on the Draft Alt HAN Co Supplier Contract. More information is available here. A final information session is being held by teleconference on 21 May 2-3pm.

For dial-in details, questions and responses, please contact Secretariat@althanco.com. Closing date: 28 May.

Consultation responses

Consultation responses have been published by the DCC, BEIS and Ofgem. These are:

• DCC consultation response: stakeholder engagement. Main findings are:
  • The DCC run too many formal consultations. Customers can’t respond to them all;
  • There are too many resource intensive forums which can result in duplicate discussions that often involve the wrong people;
  • Smaller Suppliers need more support to engage with DCC; and
  • Customers requested greater transparency around and involvement in financial decision making.

• Ofgem Decisions on modifications to the Smart Meter Communication Licence relating to Baseline Margin Relevant Adjustments and the Baseline Margin Project Performance Adjustment. Ofgem have amended the DCC licence to:
  • Clarify that Relevant Adjustments to the Baseline Margin are to be expressed in 2013/14 prices; and
  • Amend the Baseline Margin Project Performance Adjustment calculation so that it is consistent with the price base of the Project Baseline Margin recovered by Smart DCC Ltd (DCC).

• BEIS response on proposals to improve non-domestic consumers’ awareness of smart metering. The proposed next steps are:
  • Supply licence changes to amend Smart Energy GB’s remit. This includes the intention to target microbusinesses only;
  • Requiring Smart Energy GB to develop a non-domestic consumer engagement plan; and
  • Split the capital costs amongst large non-domestic suppliers, weighted by market share of the total non-domestic market, and the operating costs amongst all non-domestic suppliers; non-domestic supplier definition will be reduced, to 100,000 gas and electricity metering points.

• Proposed amendments to the SEC regarding the contents of the SMETS1 Pending Product Combinations list and Cryptographic Processing in respect of SMETS1 Devices – BEIS CONCLUSION
  • BEIS has now published its conclusions and has laid the regulatory changes to the main body of the SEC and the energy supply licence conditions before Parliament, in line with the procedure under section 89 of the Energy Act 2008.
  • The government response letter and associated documents can be found here.

Important role of Smart Meters in responding to climate change – Smart Energy GB report

Smart Energy GB has published a report which provides insight into the importance of smart meters in helping to deliver reductions of carbon emissions. It suggests that they will contribute to a 25% CO2 saving in homes by 2035 by:

• Giving consumers better knowledge of consumption – and so reduce it;
• Assist in dynamic pricing models and incentivise electric vehicles; and
• Contribute to more efficient generation and networks.

Read the report here.

SEC Modcasts

We hope that you are continuing to enjoy our Modcasts! You can listen to our next release from tomorrow, which will provide an overview of the key activities taking place regarding all things SEC Mod-related.

Last week’s episode is still available to listen to here.