Suppliers contract their own payment chamnnels for prepayment meter - PowerPoint PPT Presentation

Code Modification A087-Implementing a new framework so that Suppliers contract their own payment chamnnels for prepayment meter customers History of PPM Market • GNI assumed existing position in the PPM framework when the market was very different i.e only one supplier (BGES) in the market and approx. 30k customers using PPM • When PPM introduced, it was decided that GNI were best placed to ensure a smooth integration of the overall solution and infrastructure on behalf of the market • As a result, GNI agreed to procure the FO element of the solution in an attempt to “jump - start” the uptake of prepayment services • While the contractual set- up of the PPM solution and the overall market made sense at that time, the market has changed considerably • The PPM market today involves: - 7 Suppliers with another Supplier entering the market in the coming months - 106k PPM customers with approx.33% choosing to use a prepayment meter - growth of approx. 6k new PPM customers each year 36

Front Office Contracts • The Front Office provides a service to gas suppliers and gas customers i.e. it facilitates customers topping-up (vending) and it collects money from customers to be subsequently re-distributed to the relevant gas supplier • GNI do not pay the front office for the service it provides , suppliers pay the front office providers • Suppliers have the contractual relationship with gas customers yet GNI procure the front office service on behalf of suppliers and gas customers 37

Reasons for new framework • GNI contend that it should not be within the remit of the DSO/TSO to procure this service on behalf of Suppliers • GNI have already put in place two front office service providers that suppliers already have a relationship with • The obligations contained in the direct agreements between the suppliers and the FO providers are identical to the ‘support services’ set out in the contracts between the FO providers and GNI • Suppliers should be free to contract with whatever payment providers they can reach a commercial agreement with and GNI should not be involved in these negotiations • Suppliers already have contracts with FO providers for Electricity PPM 38