Regulation 7 Amendment of the Principal Regulations

In regulation 9 (Exemptions and limitations to supplier payment obligations) of the Principal Regulations, after paragraph (7A)^f1 insert—

“(7AA)

A supplier is not obliged to make a standard payment following failure to meet the individual standard of performance under regulation 6ZB, where—

(a)

a customer has withdrawn a request for a supplier transfer after the supplier transfer has completed —

(i)

in accordance with any term in the contract between the new supplier and the customer, or

(ii)

by virtue of any enactment, or

(b)

having agreed with the old supplier that the customer has been transferred without a valid contract in accordance with regulation 6C(1), the new supplier reasonably believes this is as a result of fraudulent activity by that customer.

(7AB)

A new supplier is not obliged to make an additional standard payment under regulation 8(3) following a failure to make a standard payment under regulation 8(2) after failing to meet the individual standard of performance under regulation 6A or 6ZB, where—

(a)

the new supplier has insufficient contact details for the customer who has been transferred to the new supplier without a valid contract, and that new supplier can demonstrate that it has used reasonable endeavours to obtain sufficient contact details for that customer in order to make the standard payment; or

(b)

the customer who has been transferred from one supplier to another without a valid contract provided the new supplier with an inaccurate or incomplete—

(i)

postal address, where the standard payment is to be sent by cheque in the post; or

(ii)

electronic payment details, where the standard payment is to be made by electronic transfer.

(7AC)

The old supplier is not obliged to make a standard payment following failure to meet the individual standard of performance under regulation 6CA where—

(a)

there is an ongoing formal dispute between the old supplier and the customer, regarding billing that customer;

(b)

the customer did not provide a postal address to which to issue the final bill and the old supplier has no alternative electronic address to which to issue the final bill for that customer;

(c)

the final bill was issued by the old supplier but not received by the customer because the customer provided the old supplier with an inaccurate or incomplete—

(i)

postal address, where the final bill was issued by post; or

(ii)

electronic address, where the final bill was issued by electronic communication; or

(d)

the final bill is in respect of a customer who was transferred to the old supplier appointed by the Authority following a last resort supply direction being given within the 3 months prior to the date on which the old supplier no longer had responsibility for the supply of gas or electricity.”.