Enstroga Ltd: Final Order

Opened:
Jan 2020
Closed:
Jul 2020
Company:
Enstroga Ltd
Regulation Area:
Sectoral Regulations

On 10 January 2020 the Authority published a notice of proposal to issue a final order on Enstroga Ltd (“Enstroga”) in accordance with section 26(1) and (2) of the Electricity Act 1989 and section 29(1) and (2) of the Gas Act 1986.

The Authority had been in discussions with Enstroga regarding the requirement to become a DCC User (as defined in standard licence conditions 42.11 and 48.11 of the gas and electricity supply licences respectively).

Standard licence conditions 42.8 of the gas supply licence and 48.8 of the electricity supply licence require 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 Enstroga 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 Enstroga. 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.

Enstroga made written representations to the Authority on 3 February 2020. The Authority considered the representations received from Enstroga in the context of the consultation undertaken pursuant to section 26(1) of the EA89 and section 29(1) of the GA86. Enstroga set out the steps it was taking to remedy the ongoing non-compliance. While the Authority noted that Enstroga anticipated becoming a DCC User in April 2020, the Authority remained of the opinion that it was requisite in all circumstances of this case to make the final order because the Authority was not confident that Enstroga would remain focused on completion of the DCC User Entry Process to 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 25(1) of the Electricity Act 1989 and section 28(1) of the Gas Act 1986, requiring Enstroga:

  • to become a DCC User by no later than 31 March 2020
  • not to acquire any new customers or add any customer accounts by upgrading to dual fuel from the date that the Final Order is made until Enstroga can demonstrate that it is a DCC User. 

On 28 May 2020, the Authority received satisfactory evidence from The Smart Energy Code Administrator and Secretariat (SECAS) that Enstroga 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 and add new customer accounts by upgrading to dual fuel.

On 11 June 2020, the Authority published its notice of proposal to revoke the Final Order imposed on Enstroga on 6 March 2020. The Authority was satisfied that the Final Order should be revoked because Enstroga became a DCC User on 28 May 2020 and is therefore compliant with standard licence conditions 42.8 of the gas supply licence and 48.8 of the electricity supply licence.

The Authority gave this notice in accordance with section 26(6) of the Electricity Act 1989 and 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 10 July 2020. No representations or objections were received in response to the proposal to revoke the Final Order.

On 14 July 2020, the Authority issued a Revocation Order under section 25(7)(c) of the Electricity Act 1989 and 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 Enstroga’s compliance with standard licence conditions 42.8 of the gas supply licence and 48.8 of the electricity supply licence as Enstroga became a DCC User on 28 May 2020. The Final Order is no longer in place.