One of the key outputs of SCR launched in 2017 is the development of a Target Operating Model (TOM) to deliver market-wide half-hourly settlement. To achieve this, the following design bodies were set up:
a Design Working Group, chaired by ELEXON, which designed the preferred TOM and transition approach. The Design Working Group concluded its work when the final report was delivered to Ofgem in August 2019.
a Code Change and Development Group, chaired by ELEXON, which is developing the outstanding areas of the TOM designed by the Design Working Group and identifying the areas of the industry codes and subsidiary documents which require amendment to implement the TOM
an Architecture Working Group, chaired by ELEXON, which is developing the system architecture design required to enable the preferred TOM
a Design Advisory Board, chaired by Ofgem, which provides a strategic assessment of market-wide half hourly settlement recommendations, and advise the Ofgem Senior Responsible Owner
The Design Working Group discharged their duties when they delivered their final report in August 2019. We are now in the development phase of the TOM design, and the Code Change and Development Group and Architecture Working Group have been meeting every month since December 2019.
Updates on the work that is being carried out in the AWG and CCDG can be found in our MHHS monthly newsletter. All editions of our newsletter can be found in the Newsletter section below. If you are interested in specific areas of the detailed TOM design, links to all the papers from CCDG and AWG discussions organised by detailed design area can be found on the Electricity settlement reform page of the Ofgem website.
The package of charges and conditions that a supplier offers you for providing electricity, gas or both.
The Tariff Information Label gives you key information about your energy tariff. It aims to help you easily compare your tariff with others available. Suppliers have to give a Tariff Information Label for each of their tariffs, in a clear and easy to understand form free of charge. You’ll usually find the label on your energy bill or annual statement, and suppliers must publish a label for each of their live tariffs on their website. You can directly request it from your supplier too, and they must also provide it when informing you about the principal terms of a contract.
The label includes the key features of a tariff, which usually includes things such as:
Tariff type (e.g. fixed or variable)
Payment method (e.g. Direct Debit)
Unit rate* – measured per kWh, this is the price you pay for the energy you use
Standing charge* - a fixed monthly/daily amount that you pay your electricity/gas supplier for maintenance and other costs, such as maintaining connection to the power network
Tariff end date (if applicable)
Price guarantee – if the price is guaranteed until a given date this is shown here
Exit fees – if the supplier charges a penalty for switching from a tariff before its end date, the level of the amount is shown here
You may need to provide your address or postcode to access an online Tariff Information Label, but should not need any other information.
*The label will state whether these charges are inclusive or exclusive of VAT
A method of direct marketing in which a salesperson solicits prospective customers to buy products or services over the phone.
Where part of their contract, these are the contractually agreed fees a customer must pay if they terminate their contract before the agreed contract end date.
The term Third Package refers to a package of EU legislation on European electricity and gas markets that entered into force on the 3rd September 2009. The purpose of the Third Package is to further liberalise European energy markets. DECC is primarily responsible for its transposition in Britain and had to do this by the 3rd March 2011.
Third Party Intermediaries (TPIs) are companies that can offer advice and products to assist with a range of functions including energy procurement, efficiency and management. They can include switching websites, energy brokers and energy efficiency advice providers who interact with energy consumers.
If you use a TPI as a business consumer, you may pay them directly or, more often, indirectly through your supplier. In the latter case your supplier may charge you a fee linked to your consumption, or a flat rate, which the supplier then transfers to the TPI.
A tariff where the charges vary by the time when the energy is consumed, for example through different unit rates for energy consumed during the day and during the night.
This is a tariff where the price per kWh for gas/electricity will vary in reference to other prices or indices. This can be the price of another tariff from another supplier, although we are proposing these tariffs will no longer be able to track the price of tariffs offered by suppliers, but only a published stock exchange quotation or index or a financial market rate over which the supplier has no control.
Typical Domestic Consumption Values (TDCVs) are industry standard values for the annual domestic gas and electricity used by a typical consumer. You’ll find them in energy suppliers’ communications, on their website and on price comparison sites where they are used to calculate the cost of a typical energy bill.
They also underpin the Tariff Information Label (TIL) and Tariff Comparison Rate (TCR).
Below you can view representative typical domestic consumption values for 2015. The current TDCVs came into force on 1 September 2015. You can use these to more easily compare between supplier tariffs on a like-for-like basis. They provide a useful starting point, but it’s still important to find out what’s right for you based on more personalised information.