Performance Assurance Frameworks

Specialist expert support for Performance Assurance compliance across GB energy codes.

What are Performance Assurance Frameworks?

The Performance Assurance Framework (PAF) is a structured, risk‑based approach used across the GB energy market to ensure that market participants comply with their obligations under industry codes. PAFs are designed to identify, monitor and address issues that could lead to non‑compliance, incorrect settlement, consumer detriment or wider market risk. 

Across the sector, PAFs are operated by Code Bodies to provide oversight of Parties, using a range of assurance techniques and controls that can be applied proportionately depending on the nature and severity of the risk. These techniques are used to hold market participants to account, ensure obligations are being met and minimise the impact of issues on customers and the market as a whole. 

Why is the PAF important to market participants?

For market participants, the PAF is a key mechanism through which compliance, performance and operational effectiveness are assessed by Code Bodies. Poor performance or unmanaged risks identified through a PAF can lead to increased scrutiny, formal assurance activities, reputational damage and potential regulatory consequences, such as increased charges. 

PAFs are generally designed to: 

  • Reduce the risk of incorrect settlement and financial leakage 
  • Protect consumer outcomes by ensuring obligations are met 
  • Identify systemic issues before they escalate into enforcement action 
  • Drive continuous improvement in processes and controls 

Market participants that do not proactively manage their PAF exposure may be escalated to Performance Assurance Boards or Committees, where issues are examined in greater depth and remedial actions may be required.  

As the energy market continues to evolve and regulatory expectations increase, effective management of PAF risks is becoming increasingly important to maintaining compliance, protecting customers, and safeguarding organisational reputation. 

The PAFs in the energy sector

What’s changing?

Alongside the existing PAFs that are currently in place for the BSC, REC and UNC, the Smart Energy Code Company (SECCo) is now establishing its own PAF.   

The SEC PAF is currently in its mobilisation phase. SECCo and its PAF Service Provider are initially running a Proof of Concept (POC) stage till, to test and refine the PAF processes and techniques developed, working with a small group of SEC Parties. The enduring SEC PAF is due to be implemented by April 2027 taking the learnings from the POC stage.   

 

How can Engage help?

We support market participants to confidently navigate their Performance Assurance obligations across all industry codes.  

Our team works with organisations to ensure understanding and readiness, support engagement with the relevant PAF Service Provider (SP), help avoid unnecessary escalation within PAF regimes and to respond effectively where issues have already been identified. 

We deliver this by: 

  • Interpreting new and existing PAF requirements and expectations across different Code Bodies 
  • Identifying root causes, risks and process weaknesses impacting performance 
  • Assessing controls, processes and governance against regulatory obligations 
  • Supporting responses to PAF issues, assurance findings and escalations 
  • Implementing practical improvements to strengthen compliance and efficiency 

Our Performance Assurance support is underpinned by:

ISO 9001:2015 Quality Management System Lead Auditors, ensuring a consistent, rigorous and auditable approach. We have extensive experience assisting market participants helping them improve compliance outcomes while protecting customers, reputation and financial performance. 

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