Recommendation 13

We asked Teneo to explain what lessons could be learned from the SAR process. Teneo told us there were two main lessons, the first of which was around the importance of planning at an early stage. It explained that this included planning even before the appointment of the special administrators to identify what needed to be taken control of and stabilised, and how. It explained that this planning should be undertaken by all those invovled in the special administration, and from its perspective would involve undertaking operational planning at a granular level to ensure that the potential risks and how to mitigate them were understood from the very start of the SAR. Teneo also told us that the second key lesson was around the importance of collaboration and keeping all involved parties up to date (including the relevant Departments, the regulator, and the administrator) on the strategy for the implementation of the SAR. It explained that this would allow decisions to be made and views taken quickly.23 Ofgem told us that planning and collaboration were also key lessons from the SAR. In addition, it explained that the major lesson it had learnt from the SAR was the importance of having a corporate structure 18 Qq 52, 67, 72; C&AG’s Report para 1.6 19 Q 73 20 Qq 72, 73 21 C&AG’s Report, para 1.6, Figure 9 22 Qq 18, 73, 119 23 Qq 48–49, 51 14 Bulb Energy set up within energy companies that would allow the administrator access to everything needed to be able to make sure that the company could be run and financially managed properly. It told us that it was working to introduce this through new regulations.24