PPM Levelisation Audit

As a new scheme, Ofgem is keen to monitor that suppliers are reporting their portfolios correctly, to ensure accuracy and fairness. 

What is PPM Levelisation?

PPM Levelisation is the method by which Prepayment Meter (PPM) customers are able to be charged the same rate as those customers on direct debit or those who pay on receipt of a bill. PPM customers are more expensive to serve for energy suppliers, as ultimately, they have to pay towards the infrastructure to run PPMs (both traditional and smart) as well as having to deal with increased customer interactions typically seen from pre-payment customers. In order for suppliers to equalise their tariffs between different customer types, the idea is those suppliers with a higher proportion of PPM customers are compensated by those with smaller proportions through a levelisation process. 

The Retail Energy Code Company (RECCo) was selected by Ofgem as the reconciliation operator for this non-volumetric Levelisation and tasked with developing the industry processes required to enable the assistance of payments between suppliers. 

This involves all suppliers being required to submit details of their electricity and gas customer portfolios to RECCo once a month. 

PPM Levelisation Audit

PPM Levelisation Audit Services

Our dedicated team of auditors combines regulatory knowledge with practical industry experience to deliver comprehensive audit services when Ofgem require it that go beyond basic compliance, helping you identify opportunities for process improvement. 

Comprehensive Service 

  • Thorough review and assessment of the reports submitted to RECCo. 
  • Evaluation of management controls and processes.
  • Clear, actionable recommendations for improvement.
  • Support throughout the audit process. 

Audit Excellence

We combine our deep industry experience with auditing accreditation to offer a comprehensive assurance service for PPM levelisation reporting when required by the regulator. Every audit is conducted by qualified ISO 9001:2015 Quality Management Systems Lead Auditors who understand both the technical requirements and the operational context of the PPM Levelisation scheme. 

PPM Levelisation Audit

Why Choose Us

We bring together technical expertise, industry knowledge, and a commitment to service excellence. Our tried and tested auditing approach delivers the reporting assurance required to demonstrate scheme compliance, while our independent perspective helps you not just meet compliance requirements but also enhance your operational efficiency. We worked with a number of energy suppliers in the first round of PPM Levelisation audits required covering the first 6 months of the scheme and we understand the unique challenges each organisation faces. 

Ready to Discuss Your Audit Requirements?

Our team is here to help you navigate any PPM Levelisation audit requirements with confidence. 

Contact Us
Engage Consulting combine their deep understanding of settlements processes with a consistent and open approach to stakeholder engagement which has allowed them to overcome the early challenges associated with a change in methodology.
XOSERVE
Chris DwyerHEAD OF CONTRACTS AND PROCUREMENT, XOSERVE
I’ve had the pleasure of working with Engage’s consultants for over six years on a large, complex, wide-ranging, technical and challenging project of critical importance to our members and government.
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Daisy CrossHEAD OF FUTURE RETAIL MARKETS, ENERGY UK
Engage Consulting has been instrumental in establishing the Alt HAN Co; ensuring the complex journey from inception to being an independently operational business, was delivered with professional and invaluable expertise and support.
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Paul CooperMANAGING DIRECTOR, ALT HAN CO
The 105 number for customers to call in a power cut was a key project for the ENA to deliver on behalf of electricity network operators. Engage overcame the many multi-stakeholder challenges – enabling us to obtain a three-digit number from Ofcom.
David Smith
David SmithCEO, ENERGY NETWORKS ASSOCIATION
We brought Engage in, as industry experts, to review our systems, processes and controls – and ensure that they would support our next phase of growth. The report they provided us with was clear and insightful – and enabled us to make real improvements across our business.
Darren Braham
Darren BrahamFINANCE DIRECTOR, FIRST UTILITY
Engage analysed gigabytes of our portfolio data and identified customer accounts causing the imbalance. They also successfully identified the key causes, provided detailed recommendations and proposed a model settlements function to allow us to improve our processes and manage future imbalances.
Lesley Baxter
Lesley BaxterFINANCE DIRECTOR, TOTAL GAS & POWER
Engage applied their detailed industry knowledge to develop a robust methodology for quantifying the impact of these adjustments, applied this to large volumes of our metered data, and produced a far more accurate determination of our losses.
SP Energy Networks
Allan HendryHEAD OF LICENCE & REVENUE, SCOTTISH POWER ENERGY NETWORKS
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