Retailers to verify ICP and metering when taking on new customers

Introduction

The Electricity Authority has become aware of cases where a gaining retailer did not verify the accuracy of an ICP identifier, or accepted reads that were estimated and not validated meter reads.

When a retailer gains a new ICP it should be careful when confirming the identification of the ICP. This is also a time when the relationship with the consumer is at its highest, which provides an opportunity for the retailer to ensure that the metering installation can be checked for certification.

Lessons learned

The Electricity Authority recommends that at the time of gaining a new consumer ICP, the gaining retailer should:

• confirm that the final meter read is accurate and validated
• confirm that the ICP identifier is accurate for the premises to be supplied
• check when the metering installation is due for recertification, and arrange access for the metering equipment provider (MEP) to recertify if necessary shortly after gaining the ICP.

Examples

Incorrect ICP

In one scenario, the retailer incorrectly assigned an incorrect ICP that had a similar address. This resulted in the consumer paying for their neighbour’s electricity use. When the error was eventually detected, one consumer was invoiced for a quantity of electricity that they had not previously been charged for. This resulted in the consumer having to enter into a payment plan with the retailer.

Estimated Read

In one case, a switch read was revised using the switching read amendment process after the losing retailer received a customer read from the consumer a few days after the switch was completed. This customer reading was used by the losing retailer to initiate a switch read amendment.

However, the losing retailer had already prepared the consumer’s final bill from estimated half-hour data. The estimated half-hour data used for the customers final bill was not recalculated using the accepted customer provided reading.  This resulted in a different volume being billed to the consumer to what was submitted for reconciliation.

Because the gaining retailer billed and settled this ICP as non-half hour submission methodology there was no correction to the losing retailers billing volume to the consumer.

Uncertified meters

Another issue that is becoming apparent is a significant number of meters where certification has expired – or is about to expire. In some cases, arranging access to the meter for the MEP can be difficult.

We recommend that at the time that retailers gain a new consumer, they check for when the metering certification expires. If it has already expired or is about to, then promptly arrange access for the MEP to recertify the meter.

Code provisions

Schedule 11.3 of the Electricity Industry Participation Code 2010 (the Code) provides the requirements for switching ICPs.

Some relevant provisions to this guidance note are outlined below.

Schedule 11.3, clause 1

Provides for the standard switch process (ie from losing trader1 to gaining trader) on the assumption that the ICP is correctly linked to the customer.

Schedule 11.3, clause 5

Specifies the information the losing trader must provide to the registry manager within five business days of the event date.

It is important to note that the requirements of providing an accurate meter read – either provide a validated meter reading or the losing trader must provide the date of the last meter reading along with a switch event meter reading.

Schedule 11.3, clauses 8 to 12

Provides for the standard switch process (ie from losing trader2 to gaining trader) on the assumption that the ICP is correctly linked to the customer.

Schedule 11.3, clause 17

Limits the time period for a trader to request a switch request be withdrawn to two months after the event date.