REGTECH FOR SUPPLIER LICENCE COMPLIANCE

Regulatory focused technology that utilises data to measure and report on supplier licence compliance

THE CHALLENGE

An energy supplier must be able to prove compliance with the regions legislative supplier license conditions. Typically, GRC teams are forced to ‘jump through hoops’ under restricted timescales to produce the needed data for external audit review.

Compliance Risk Reporting Made Easy

We know from experience that the GRC teams responsible for compliance are under high pressure to produce and submit evidence. This challenge is often compounded by a lack of time, complex systems and limited resource. GRC colleagues are often quoted as saying ‘keep the plates spinning’ as the English phrase goes. Reporting on GRC compliance is a constant requirement.

In September 2022, Ofgem made the following comment during one of their supplier licence reviews:

“…we identified some weaknesses or gaps in [the energy suppliers] processes that they need to make improvements to… Examples include… gaps in assurance and risk management processes that could potentially impact suppliers ability to identify risks and develop improvements… We have started compliance engagement with these suppliers to secure improvements.”

Imperium™ for Regulated Business Operators Compliance

The Imperium^TMplatform functions like the swiss army knife of all RegTech solutions. Its flexibility in decoding data enables the use of both internal and third party data sources to build a powerful regulatory compliance tool. This tool can help you to identify gaps in assurance and risk management therefore enabling you to identify the risk of non-compliance or customer satisfaction.

Once data is flowing into Imperium^TM, you can see a ‘birds eye’ view of the entire data ecosystem in near real time (NRT). This end-to-end reconciliation provides automated alerting to any anomalies which can then be analysed within the platform.

Our reporting solution can be adapted to your specific licence conditions. For example, you can define the KPI thresholds and alerts that should trigger internal action. In addition, these alerts can be uploaded directly into your own risk management portals. Alternatively, you can opt to use our pre-defined risk control framework.

Ease of Deployment - ETL

Accessing source data is often considered to be one of the most challenging aspects of setting up a new RegTech System. Imperium™ includes a dedicated mediation platform configured by our experienced inhouse engineering teams to keep the data extraction setup as simple as possible. The process of Extract, Transform, Load (ETL) is fully automated.

For more details on our setup process, request a product guide at the bottom of this page.

How Big is the Problem of Non-Compliance?

In the past 5 years in the UK alone, fines have amounted to over £33 Million against electricity and gas suppliers for a range of regulatory infractions*

In order to illustrate the cost impact of non-compliance with licence legislation, we have categorised all of the UK’s Ofgem fines over recent years (totaling over £150 million pounds).

The pie chart shows that the electricity supply licence and gas supplier licence fines combined make up £33 million (22% of the total value fines).

The bar chart below further breaks down this £33 million into the standard licence conditions (SLCs) that were affected.

For an explanation of this analysis, please just ask@roscom.co.uk

*all fines data taken from OfGem, correct as of September 2023

Control Frameworks for Risk Mitigation

Having the right controls in place enables you to prove that risk mitigation forms part of your processes. The controls configured in the Imperium^TMplatform are set to match the supplier licence conditions that you must comply with. By being able to run reports on these controls, submitting evidence of compliance or non-compliance becomes quicker, easier, and enables remedial action to be taken much soon.