Notifying Ofgem of the ECO

Suppliers are required to notify Ofgem of the number of domestic customers that they retained on [31 December 2017] and the total volume of gas and/or electricity supplied in the period [1 January 2017 to 31 December 2017]. In this example notifications should be sent to Ofgem no later than midnight on [1 February 2018].

Definitions

1. Suppliers should add together all group companies’ data for the calendar year (customers and units supplied) whether being part of the group for the full year or for less than a full calendar year.
2. To calculate the total electricity kWh supplied to customers on Profile 1 and 2 suppliers should:
   1. Remove any unmetered supply from this data;
   2. The data should be based on settlement data available from [25 January 2018], split by licence;
   3. Suppliers should use D030 (Non half hourly Distribution Use of System Charges report) using the consumption data excluding losses, as ECO only requires volumes delivered to customers.
3. To calculate the total gas kWh supplied on a consistent basis amongst suppliers, the aggregated Annual Quantities (AQ) supplied to domestic customers should be reported as at:
   1. [1 January 2017];
   2. [1 April 2017];
   3. [1 July 2017];
   4. [1 October 2017];
   5. [31 December 2017]

these aggregated AQs should summed and divided by five to calculate the mean AQ.

ECO liabilities are triggered at 250,000 customers and the Government’s proposals for ECO3 include:

• reducing the threshold to 200,000 customers from April 2009; and
• further reducing the threshold to 150,000 customers from April 2020.

The ECO3 proposals also include a change in the taper mechanism (for newly-qualifying suppliers) to one based upon a supplier allowance approach to complement the new thresholds from April 2019.