Supplier and Shipper failure
Helpful information for Suppliers, Shippers and consumers in response to recent market events.
The gas sector is facing challenging times
There are an increasing number of Suppliers and Shippers ceasing to trade and exiting the market.
Ensuring minimal disruption to consumers
Xoserve and Correla are working with affected organisations, networks and the regulator to ensure the energy needs of consumers continue to be met.
If you’re a gas consumer, please visiton Ofgem’s website.
Helpful information for Suppliers and Shippers
We’ve provided relevant information with links below to assist our Supplier and Shipper customers.
If you need more information, please raise a support request.
What happens when a Shipper ceases trading
The information below relates to the traditional gas networks (such as Cadent, Northern Gas Networks etc.), not Independent Gas Transporters (IGTs) as they have their own processes.
The Supplier may need to contact IGTs directly, although we expect their processes to be similar to18 (SLC18 – p117).
SLC18 is universal, however the specifics within the IGTs’ Deeds of Undertaking may differ.
The obligations on a Supplier
The obligations on a Supplier in the event of their Shipper failing are detailed within SLC18 (p117) and cover the Deed of Undertaking requirements.
When a Supplier is left shipperless due to their Shipper’s unplanned exit from the market, the Deed of Undertaking is invoked.
Following the termination of the Shipper from the transporter’s network, the transporter will issue a notification to the affected Supplier invoking the Deed of Undertaking. This then comes into force the following day.
At this point the Supplier:
- becomes responsible for energy and transportation charges for their portfolio
- is required to place security to cover their portfolio for energy and transportation charges within two business days
- is required to establish a relationship with another Shipper for their portfolio within 25 days
The security that is placed as part of the Deed of Undertaking is held in place until the Supplier's entire portfolio has been assigned to a new Shipper.
For questions relating to the Deed of Undertaking, please raise a support request.
How Shipper failure liabilities are funded by the industry
The Uniform Network Code (UNC) has provision for how Shipper failures are funded by the industry.
“The effect of the provisions of Section F4.5.3(a)(ii) is that, if a User fails to make payment of any Energy Balancing Charge when due, all other Users may become liable for (in aggregate) an equivalent amount (together with an amount in respect of the cost of financing such non-payment)”
For details of how the costs are calculated please go to.
For more information about how Shipper failure liabilities are funded, please raise a support request.
The rights and obligations remain with the Shipper for the pre-termination period and amendments will continue to get issued to the Shipper and then the administrators, in line with the UNC.
Any Supplier associated to the supply meter points within the terminated Shipper’s existing portfolio is able to place claims to the amounts through a proof of debt claim with the administrators.
There will be no ability for a terminated Shipper or their Suppliers to update any of the central systems following the effective date of the termination.
In accordance with their licence conditions, an affected Supplier has the obligation to find another Shipper within 25 business days. The new Shipper must take ownership of the supply points before any updates can be made to the records held within the central gas register.
If you have a valid update to the data held, you must first confirm the details with the Shipper or their administrators, before emailing all the necessary data and details of the required change(s) to us at the email address below. You must CC your Shipper (or their administrator) contact into this email.
If the Shipper or administrators are not available for you to confirm the change(s), you must advise that your request has not been validated in the email.
Please email the details of your change(s) to email@example.com.