IT framework conditions for 24-hour supplier switching
Requirements and opportunities in IT implementation
On March 21, 2024, Ruling Chamber 6 of the Federal Network Agency (BNetzA) defined the framework conditions for accelerated supplier switching within 24 hours on working days. From April 1, 2025, energy consumers can switch suppliers for supply contracts within one working day. This will again lead to extensive changes in energy industry processes and the relevant IT systems.
Nevertheless, 24-hour supplier switching significantly impacts the various market roles. While it has advantages regarding the technical switching process, it also increases requirements and complexity in operational management. Therefore, all market participants must be well prepared and have efficient processes and IT systems in place to meet these requirements.
Requirements for the Relevant IT Systems
The (24h)-change of supplier places considerable demands on the IT systems of all market roles involved:
Speed and efficiency
The IT systems must be able to respond quickly to requests and complete processes within 24 hours. This requires high performance and efficiency of the IT systems.
Reliability and stability
IT systems must be stable and reliable to ensure continuous operation and minimize downtime. This is particularly important for transmission and distribution grid operators who need to ensure grid stability.
Flexibility and scalability
Due to the dynamic development of customer relationships, IT systems must be able to scale flexibly in order to adapt to an increased number of supplier changes.
Data security and data protection
The IT systems must continue to meet strict security and data protection standards in order to guarantee the confidentiality and integrity of all processed data, e.g. customer master data or consumption information.
Integration and interoperability
The IT systems must be able to interact smoothly and automatically with other IT platforms and exchange data efficiently. This is particularly important for cooperation between suppliers, grid operators, transmission system operators and metering point operators.
Automation
IT systems should be able to automate processes to reduce the cost of running operations, increase efficiency and minimize potential human error.
These requirements represent a considerable challenge for the relevant IT systems and require careful planning and implementation.
Changes in Market Communication for the 24-Hour Change of Supplier
The Applicability Statement 4 (AS4) protocol contributes to future-proofing market communication (MaKo) in the German electricity market. Market communication via AS4 has been mandatory since April 2024.
The weekday change of supplier, which is now to be launched in parallel, will come into force from April 1, 2025. The process implementation of the 24-hour supplier change streamlines many deadlines and adapts processes structurally.
The combination of MaKo via AS4 and the 24-hour supplier change leads to a restructuring of the data exchange, which supports the subsequent application of the processes and contributes to improved data quality in the market.
The use of AS4 contributes significantly to information security and ensures data protection and the security of communication processes between the various market participants in the German electricity market.
Process Automation as an Opportunity
For the market roles in the German energy market, accelerated supplier switching offers the opportunity for further process automation and, thus, for reducing costs and resources. The far-reaching requirements for standardization, digitalization, and automation conserve resources and reduce manual effort, especially in bilateral clarification of system-related error messages in the switching process.
The challenges of implementing the relevant market processes are complex and will continue to affect the energy sector long term. It is necessary to process ever larger volumes of data and enforce digitization projects agilely to meet the high legal requirements. It is essential to establish a robust and scalable IT structure and network it with the existing IT systems. Moving to the cloud, for example, can provide the necessary flexibility to make it easier to create and implement adjustments later. As a digitalization and IT partner, we not only offer you the essential and up-to-date industry expertise for the energy sector, but can also support you with system integration and migration.
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