Crown Gas & Power’s recap of the gas industry in 2021

2021 brought with it a lot of extraordinary changes within the gas industry. Here we have listed eight of the most important updates and changes that occurred last year.

Smart Meters & AMRs

It is the UK government’s ambition is to ensure that all homes and businesses have a Smart Metering System installed by mid-2025 and the end of 2021 marked the end of the ‘all reasonable steps’ approach. From 1st January 2022, Crown Gas & Power along with all other suppliers are legally obligated to install a minimum number of Qualifying Smart Metering Systems in 2022. To read more about this target, please visit our Smart / AMR meters for your business page.

Faster switching

Industry wide development and readiness programmes continued to progress throughout 2021 towards a June – August 2022 go-live date. A go live date will be confirmed by the programme at the end of January 2022.

Retail Energy Code (REC)

The REC v2.0 officially launched on Wednesday 1st September 2021, along with accompanying Energy Market Architecture Repository (EMAR). The REC is the first digitalised code which aims to consolidates existing code arrangements across gas (MRA) and electricity (SPAA) while also providing the necessary centralised code arrangements for the operation of the Faster Switching Programme.

Micro Business Strategic Review

Last year Ofgem published its finalised package of measures, which aim to improve overall micro business engagement and cost transparency when interacting with the retail market. The industry is now awaiting Ofgem’s final response (a decision outstanding with the regulator since last July).

Green Gas Levy

2021 saw the official launch of the Green Gas Support Scheme (GGSS) on 30th November. The scheme, which is funded by the Green Gas Levy (applied to all licenced fossil fuel gas suppliers), provides financial incentives for any new infrastructure and ongoing operational costs needed to produce biomethane via anaerobic digestion. For more information, please visit the government’s webpage on GGSS.

Wholesale Gas Prices

Rising gas prices have caused a ripple effect on businesses across the UK including over 20 energy companies that ceased trading in 2021. By the end of the year, gas prices were up more than 250% since January 2021 for several reasons including 2020’s increased demand for supplies due to a cold winter and an increase in demand from Asia for liquefied natural gas.

26 suppliers enter SoLR process this year

By the end of 2021 there were 26 suppliers which had entered Ofgem’s Supplier of Last Resort (SoLR). Under the process, an alternative supplier is appointed by the regulator, ensuring continuity of supply for all customers impacted.

Bulb ‘SAR’

On 24th November 2021, due to the impact of the energy crisis, Bulb entered into a Special Administration Regime (SAR) with appointed administrator Teneo. The SAR was arranged to protect Bulb’s current members and allows the business to operate as normal.

Our experts at Crown Gas & Power are on hand to support anyone who is looking for advice or support on their gas contracts or about the industry in general. Get in touch with our team today if you have any queries.