What are they?
A daily metered (DM) gas customer provides a daily consumption standard offtake quantity (SOQ) for each DM meter point (MPRN).
During the winter period, from 1 October to 31 May, if a customer exceeds their nominated SOQ then they will be subject to a penal ratchet charge.
What does it mean for our customers?
What are we doing?
We’ve raised Modification 619 to address the penal nature of the ratchet charge. We propose that the multiplier is set to one instead of two. That way, the customer pays for the actual daily capacity used.
We also propose changes to the nature of ratchet from penal charge to a corrective charge.
There have been two alternative modifications raised;
Unfortunately on 31 July 2018 Ofgem decided to reject all of the proposals and we’re engaging with them to understand if alternative arrangements can be put in place ahead of this year’s ratchet season.
We've now raised Modifcation 0665 which looks at the introduction of suitable classification of ratchetable supply points and ensuring accurate capacity allocations (SOQ), in hope of addressing the concerns set out in Ofgem's rejection letter.
How can I find out more?
The proposals that were rejected can be found here:
And more information on Ratchets can be found here: