We are pleased to announce that the initial payment cycle for the Prepayment Levelisation scheme was a great success. Industry submitted their data within the agreed timescales, and only minor data validation errors were identified, which were quickly rectified. Invoices were issued on time, and 99.9% were paid within the time limits, meaning that monies could be distributed quickly to the industry. Completed in May 2024, this achievement has laid a solid foundation for future periods, ensuring that the energy industry continues to operate with precision and accountability.
What is Prepayment Meter Levelisation?
Historically, British customers on prepayment meters (PPM) have paid more for their energy than those on direct debit (DD). On the 15th of March 2023, the Chancellor announced that the Energy Price Guarantee (EPG) would be used to align costs for PPM and DD customers. Initially, these costs were aligned by giving PPM customers a unit rate discount. In October 2023, Ofgem selected RECCo to develop the industry processes and as the reconciliation operator to deliver the non-volumetric payment levelisation programme. The programme went live on the 1st of April 2024.
Key areas of success in period 1
- Suppliers committed to timely data submission
57 data submissions from suppliers covered over 95% of the expected prepayment meter count in the UK for the period. Adhering to the data submission deadlines ensured a strong start to the process.
- We implemented an efficient data validation process
Our thorough data validation processes identified two incorrect submissions at the source. Prompt communication with the respective energy suppliers led to the swift resubmission of valid data. This proactive approach ensured that all data files were processed within the expected timescale, maintaining the integrity and accuracy of the data.
- 99.86% of invoices were paid on time
In the first period, invoices totalling £5.24 million were sent to 18 suppliers, with 99.86% paid on time and the remaining balance settled within 2 working days of the deadline. This high rate of timely payments demonstrates the industry’s dedication to financial responsibility and efficiency.
Thank you to the industry
The success of this period would not have been possible without the dedicated efforts of various parties:
- Industry Partners: Thank you to all industry partners for meeting data submission dates and maintaining high-quality data submissions. Your cooperation was crucial in ensuring a seamless process.
- Capgemini: We appreciate Capgemini’s pivotal role in deploying the service into production and providing early life and hyper-care support, ensuring the success of period 1.
- Gemserv: Your dedication to ensuring that the scheme was successfully implemented into the REC and that all parties were aware and engaged in it from the outset helped drive its immediate success.
- Finance Teams: Kudos to the industry finance teams for establishing systems that enabled the timely payment of invoices, which significantly contributed to this period’s financial success.
- RECCo Finance and Operations Teams: Your hard work and dedication ensured that period 1 ran smoothly, setting a high standard for future periods.
- Ofgem: Special thanks to Ofgem for their support in securing the revised data submissions, which was essential for maintaining the accuracy and reliability of our data.
Find out more
We are proud to deliver Prepayment Meter Levelisation on behalf of the industry. This scheme is positively impacting some of society’s most vulnerable consumers and helping to combat fuel poverty.
Earlier this year, we wrote a guide to the scheme, which you can read here.
