Many consumers do not switch their energy supplier because they see switching suppliers as a hassle and they fear of something going wrong during the switch. These consumers could miss out on £100's cost savings as a result of remaining with the same energy supplier ('supplier').
Current switching depends on processes that are slow, inefficient, unreliable, are based on 1990s technology and are different for the supply of electricity and gas. In a move to improve consumer experience and encourage greater engagement with the energy market Ofgem is leading the Switching programme.
In November 2015 Ofgem launched a programme to deliver faster and more reliable switching for consumers by replacing the existing network run gas and electricity switching services with a new Centralised Switching Service (CSS). DCC is a key delivery partner of Ofgem and we are supporting Ofgem to develop the end-to-end switching arrangements. The changes will facilitate market competition and realise significant quality and efficiency benefits for energy suppliers and network operators.
It is expected that DCC will enter into contract(s) with the service providers(s). The service will be provided on behalf of industry, but there will be no direct contractual relationship between the service provider(s) and energy market participants or between the service provider(s) and Ofgem. It is expected that governance of the services will be provided via an industry code to which DCC (rather than the service provider(s)) will be a party. DCC is regulated by Ofgem.
The DCC Switching Programme is being funded using the same charging methodology as for all other DCC work and it is anticipated that a similar approach will apply during the roll out of the CSS. However, it should be noted that the programme is being managed independently from DCC's role in the Smart Metering Implementation Programme. Further information on DCC's Charging Methodology can be found here.
As part of the Switching Programme procurement activity, DCC commissioned Netcompany to carry out a review of the potential technologies as part of the forthcoming tender for the Central Switching Service (CSS). Find out more here.
The programme will be delivered over five phases. The first three phases are known as the Transitional Phase and take the original Target Operating Model published by Ofgem through to a final decision on the preferred reform package, and the the development of regulatory requirements to support it. Ofgem concluded in February 2018 that it would proceed with the reform package proposal, known as RP2a, allowing a domestic customer to change supplier by the end of the next working day, then to a robust and unambiguous design supported by policy and regulation.
The Transitional Phase also includes procurement of the Central Switching Service (CSS) and awarding of contracts to service provider(s).
The fourth phase covers the detailed design, build and testing of the CSS (expected to include a registration service, address service and communications network) and activities to transition the new systems and industry processes to live services, while the final phase is the operation of the live service.
The programme is still designing the detail of how switching will work across the many parties involved in the switching arrangements including how the new CSS will transform and manage data to simplify and control a reliable switching service. The ultimate aim is to give consumers a faster and more reliable experience when switching energy supplier.
The Switching Programme is now in the Enactment phase and DCC will be commencing the procurement of services.
An initial pre-qualification stage will be used to shortlist applicants to receive an Invitation to Tender (ITT) for the services being procured.
A selection (pre-qualification) questionnaire (PQQ) will be published on 22nd June 2018 for applicants to complete and submit online. The deadline for submission will be 13th July 2018. The responses will be evaluated, and applicants will be shortlisted to receive the ITT.
The online selection questionnaire will include two reference documents:
If you are interested in applying to bid for the Switching Programme services, please contact the following email address: firstname.lastname@example.org.
Please note that your organisation will need to sign a confidentiality agreement with DCC in order to participate in the PQQ and subsequent tender process.
For Switching queries please email: email@example.com