Market Compliance Assessment – Performance Assurance

The Client  

A Large Domestic Energy Supplier required to participate in Ofgem’s Market Compliance Assessments activity. 

The Brief / challenge 

In 2022, Ofgem announced a series of market compliance reviews. They described these reviews as invasive assessments of Energy Suppliers’ policies, governance and processes to ensure they achieve good consumer outcomes and are financially and operationally robust. 

 A first stage comprising of four market compliance reviews focused on areas with immediate impacts to consumers, with a second stage centred on Suppliers’ financial robustness and risk management. 

Our client engaged us to analyse its performance against the relevant compliance obligations in each stage; to assess if any weaknesses in policy, procedure or governance could result in potential gaps against regulatory requirements and negative customer or business outcomes. 

 The Solution 

We were engaged for this assignment having worked with clients from across the energy sector seeking to prevent financial leakage and regulatory non-compliance, supporting them in identifying and resolving gaps against industry obligations that could lead to penalties or negative customer implications. 

Our deep understanding of market arrangement and industry benchmarks is supported by our accreditation in ISO:9001 Quality Management Systems as Lead Auditors, and we were able to apply our tried and tested approach for auditing operational processes against regulatory requirements to this project. 

We worked to identify and understand process inefficiencies and governance weaknesses that could result in non-compliance or financial leakage. We shared a comprehensive findings report that documented risks and opportunities identified alongside potential mitigations and approaches to resolving issues and realising benefits. This enabled the client to demonstrate to Ofgem that  the processes in scope were operationally and financially robust, and to also identify how these could be fully optimised. 

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