The Client
A challenger energy supplier providing electricity and gas to both domestic and commercial customers.
The Challenge
In response to a regulatory review of prepayment metering (PPM) practices across the energy sector, the industry regulator launched a comprehensive Market Compliance Review (MCR). This initiative aimed to assess how suppliers managed PPM operations, particularly in light of concerns around involuntary prepayment meter installations and remote mode switching.
The regulator required all suppliers to pause PPM installations and conduct proactive checks to ensure no meters had been installed incorrectly. A new Code of Practice was introduced, setting out stringent expectations for supplier conduct in this area. To resume involuntary PPM operations, suppliers were mandated to undergo an independent audit assessing:
- Governance and oversight;
- Policies and procedures;
- Risk management frameworks;
- Operational processes and controls;
- Management information systems;
- Staff training programmes; and
- Assurance mechanisms.
Our Role
Engage Consulting was appointed as the independent auditor for a challenger energy supplier. Our task was to conduct a two-part audit:
- Retrospective Review – Evaluating the supplier’s PPM operations over the previous year.
- Forward-Looking Assessment – Measuring the integration of the new Code of Practice into the supplier’s policies and procedures.
The Outcome
Leveraging our deep expertise in regulatory compliance and operational auditing, Engage Consulting delivered a thorough and impartial assessment. The audit was completed in two phases, with findings compiled into a detailed report submitted to the regulator.
Following a review and resolution of queries, the supplier was deemed compliant and received approval to resume its involuntary PPM operations. This outcome not only demonstrated the supplier’s commitment to regulatory standards but also reinforced its position as a responsible market participant.