Daligas Limited: Final Order

Opened:
Jan 2020
Closed:
May 2020
Company:
Daligas Limited
Regulation Area:
Sectoral Regulations

On 10 January 2020 the Authority published a notice of proposal to issue a final order on Daligas Limited ("Daligas") in accordance with section 29(1) and (2) of the Gas Act 1986.

The Authority had been in discussions with Daligas regarding the requirement to become a DCC User (as defined in standard licence condition 42.11 of the gas supply licence).

Standard licence condition 42.8 of the gas supply licence requires licensees to become DCC Users by 25 November 2017.

The particular behaviour of concern giving rise to the proposal to make a Final Order was that Daligas failed to become a DCC User by the deadline and remained non-compliant. By failing to be a DCC User in accordance with the licence condition, its existing customers with smart meters were suffering harm because they did not have smart meter functionality. There would also have been harm to customers who lost their smart functionality on switching to Daligas. Representations or objections with respect to the proposed final order were invited to be made to the Authority by 10 a.m. on 3 February 2020.

Daligas made written representations to the Authority on 28 January 2020. The Authority considered the representations received from Daligas in the context of the consultation undertaken pursuant to section 29(1) of the GA86. The Authority noted the representations and the new proposed timetable for when Daligas anticipated being a DCC User. The Authority was not confident that Daligas would become a DCC User as quickly, without a final order being in place.

Therefore, on 6 March 2020, the Authority made the final order, pursuant to section 28(1) of the Gas Act 1986, requiring Daligas:

  • to become a DCC User by no later than 31 March 2020
  • not to acquire any new customers from the date that the Final Order is made until Daligas can demonstrate that it is a DCC User.

On 21 April 2020, the Authority received satisfactory evidence from The Smart Energy Code Administrator and Secretariat (SECAS) that Daligas had completed all the required steps to become a DCC user and had therefore met the requirements set out in the Final Order for it to be able to acquire new customers.

On 27 April 2020, the Authority published its notice of proposal to revoke the Final Order imposed on Daligas on 6 March 2020. The Authority was satisfied that the Final Order should be revoked because Daligas became a DCC User on 21 April 2020 and is therefore compliant with standard licence condition 42.8 of the gas supply licence.

The Authority gave this notice in accordance with section 29(5) of the Gas Act 1986. Any representations or objections with respect to the proposed revocation were invited to be made to the Authority by 5 p.m. on 26 May 2020. No representations or objections were received in response to the proposal to revoke the Final Order.

On 28 May 2020, the Authority published a Revocation Order under section 28(7)(c) of the Gas Act 1986. The Authority decided that the Final Order was no longer required for the purpose of ensuring Daligas’ compliance with standard licence condition 42.8 of the gas supply licence as Daligas became a DCC User on 21 April 2020. The Final Order is no longer in place.