Approval of changes to the Code Administration Code of Practice
Decision
Publication date
The letter sets out our decision to approve changes to the Code Administration Code of Practice (CACoP).
Background
As part of Ofgem's Code Governance Review (CGR) a Code of Practice, the CACoP, was developed by industry to facilitate convergence and transparency in code modification processes. It is also intended to help protect the interests of small market participants and consumers through the adoption of key code administration principles.
The CACoP initially applied only to the Balancing and Settlement Code (BSC), the Uniform Network Code (UNC) and the Connection and Use of System Code (CUSC). Following on from the Code Governance Review Phase 2 (CGR2)3, the CACoP now applies to the other industry codes, ie the Distribution Code, Distribution Connection and Use of System Agreement (DCUSA), Grid Code, Independent Gas Transporters UNC (iGT UNC), Master Registration Agreement (MRA), SO-TO Code (STC) and Supply Point Administration Agreement (SPAA). In addition, it applies to the new Smart Energy Code (SEC) designated by Government in September 2013.
The relevant gas and electricity licence conditions set out that changes to the CACoP must be approved by Ofgem.
The proposed changes
At a joint meeting of the Code Administrators on 26 September 2013 National Grid agreed to propose some house-keeping changes to the CACoP to reflect the new licence requirements which extend the application of the CACoP to these other codes, and which are being implemented on the 31 December 2013. The proposed changes, which have been agreed with all Code Administrators, were submitted to Ofgem for approval on 20 December 2013.
Several house-keeping changes have been proposed. All relevant industry codes and their respective Code Administrators are now included in the document. Reference has been made to the Fast-Track Self-Governance Process. There has also been a paragraph added to the Introduction section reflecting that the finer level of detail set out under each principle reflects current practice and alternative and innovative approaches may also be appropriate.
Our decision
We are satisfied that the changes that have been proposed are appropriate in light of the new licence requirements that come into effect on 31 December and Government’s decision that the CACoP should apply to the new SEC. We agree with the change to the introduction to reflect that alternative and innovative approaches may be appropriate, and note that such approaches themselves may lead to proposed changes to the CACoP, to reflect potential improvements in current working practices.
In accordance with Principle 4 of the CACoP and the provisions of the relevant licence conditions, Ofgem approves all changes to the CACoP that have been proposed in this submission. The revised version will be published on our website.
Lesley Nugent
Head of Industry Codes and Licensing