SMARTESTENERGY LIMITED
Company number: 03994598
Reporting period:
1 October 2019 to 31 March 2020
Report filed on:
27 April 2020
Approved by:
Mr Takafumi Shigemura
Payment statistics
Average time taken to pay invoices: 14 days
Invoices paid:
- within 30 days: 100%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 1%
Payment terms
Shortest standard payment periods
5 days
Longest standard payment period
30 days
Standard payment terms
5 days for wholesale power/gas invoice settlement; 10 days for power purchase invoice settlement; 0-14 days for certain industry costs settlement; 30 days for operating and capital expenditure purchases.
Were there any changes to the standard payment terms in the reporting period?
Answer not provided
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
30 days
No further comment provided
Any other information about payment terms
SmartestEnergy Ltd operates a daily payment run and captures all undisputed invoices due for payment in 3+ days time. Payments are generally made by BACS and suppliers receive payment within 3 days from the day of payment approval. When any invoice becomes overdue (following a dispute resolution or for operational reasons) and it is approved for payment, it will be settled via CHAPS to reduce number of overdue days. Some key suppliers have a mandatory payment method of Direct Debit. These suppliers are always paid per contractual payment terms, whether invoices are in dispute or not. Our average agreed payment terms of 15 days with an actual of 14 days clearly demonstrates that SmartestEnergy Ltd pays its suppliers on a timely basis.
Dispute resolution process
1. Invoices related to wholesale power/gas settlement, power purchase, operating and capital expenditure: Invoices are matched to a purchase order/billing document on receipt. Should the invoice and order/billing document not match, the AP Accounts Assistant will liaise with the relevant settlement team to confirm the correct information and work with the supplier to enable the correct payment to be made. In the event the AP Accounts Assistant is not able to agree with the supplier, the dispute is escalated to a Customer Service Executive or the Purchasing Clerk. Should the payment query still not be resolved, it will be referred to our VP Finance for further consideration. Upon resolution the invoice is placed on the next available payment run. Remittance advices are sent via e-mail or post upon request of each supplier. This is in order for the supplier to match the payment received against the same invoices as SmartestEnergy Ltd has matched to and avoid disputes about mis-matching of payments. 2. Invoices related to Electricity and Gas industry charges. Per industry requirement all Electricity and Gas industry settlement costs must be settled regardless whether SmartestEnergy disagrees with invoiced values at the time invoice falls due for payment. Several such supplier are settled via a mandatory Direct Debit payment method that operates on our corporate bank account. There is a separate formal industry cost dispute resolution process in place, which is taken care of by the Operational Assurance team. Any amounts in dispute that are resolved, are settled as part of the following invoicing/credit note cycle. These disputes therefore do not affect payment terms. *********************************************** In an event of invoice payment query our Accounts Payable team can assist by contacting them on the following email or phone: back-office@smartestenergy.com Phone 01473 234946
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No