At its Stakeholder Engagement event in December 2020, RECCo was asked to publish an early sight estimate of the headline 2021/22 Budget numbers in advance of the Budget Consultation in February.
REC v1.1 requires the RECCo Board to develop an annual budget on a bottom-up basis, agree the budget and then publish for REC Party consultation. The RECCo Board expects to agree the final 2021/22 Budget at its next Board meeting on 3rd February and publish for consultation in that same week. Section 9.7 and 9.8 of REC v1.1 sets out the basis on which a Party can appeal the agreed Budget to Ofgem.
The headline estimates set out below are for information purposes only and are yet to be finalised by the RECCo Board.
A number of individual budget lines have been aggregated to ensure RECCo does not breach confidentiality (e.g. disclose contract values), and to protect its commercial interest (e.g. disclose estimates associated with procurement activities).
For the coming 2021/22 Financial Year, RECCo will operate in an evolving and changing environment both internal to the organisation and within the retail energy governance space.
Key factors impacting RECCo’s operations will include:
Mobilisation of REC Code Manager services ready for retail code consolidation;
Central switching service entering UEPT phase;
Migration of 14 existing industry services from existing codes to recco; initiation of projects to assess the viability, including value for money, of a replacement TRAS;
Delivering metering efficiencies through consolidation of codes of practice and meter auditing services.
RECCo will establish an infrastructure capable of delivering an “Intelligent Customer” role on behalf of the REC Parties to ensure Service Providers deliver service quality, continual improvement, and value for money under the enduring service.
In support of the delivery and achievement of the RECCo Strategy, the budget reflects the resources required for the following
Key Strategic Deliverables:
Code Manager readiness for Retail Code Consolidation and service delivery thereafter;
Create a RECCo infrastructure to act as “intelligent customer” on behalf of industry;
Develop a vision and strategy for TRAS2 and commence procurement;
Metering Codes of Practice consolidation and procurement of a single metering code auditor; and
Stakeholder Engagement Programme.