We are now less than four months away from the planned implementation of the Central Switching Service (CSS) and new switching arrangements.
With CSS Go-Live fast approaching, our focus is very much on ensuring the REC is operationally ready for the transition to REC Governance. There are two aspects of the transition to REC Governance:
Readiness for CSS Go-Live: Ensuring the REC is ready to govern the new switching arrangements from the implementation of the CSS. This includes ensuring:
Readiness for Switching Programme Exit: Ensuring the REC is appropriately engaged with the Switching Programme during the post-implementation period to ensure system and service stability prior to the formal exit of the programme and full transition to REC Governance. We are working closely with the Switching Programme on the alignment of the Programme Exit Criteria and RECCo’s Acceptance Criteria to ensure a smooth transition for REC Parties and Stakeholders.
We continue to work closely with the Switching Programme, DCC, Code Manager and other REC Service Providers to ensure that the REC is fully prepared for the introduction of the new switching arrangements.
If you would like any further information on RECCo’s preparations for CSS go-live, please contact Jon Hawkins at Jonathan.Hawkins@retailenergycode.co.uk
As we reported last month, we have commenced the project to consolidate the current Metering Codes of Practice into a single set of metering arrangements under the REC and to procure a single service provider to manage the metering accreditation scheme.
It is important to note, that the procurement activities are not a reflection on the performance for our current service providers. Rather the aim is to consolidate and simplify in order to implement an efficient set of arrangements, making it easier for market participants to understand and comply with their obligations, which in turn will benefit the end consumer.
We are currently on track with our plan and have successfully recruited Rob Short who will be leading on the governance stream. A core element of Rob's role will be to engage with the relevant stakeholders to ensure a thorough review, conducted in a manner that fulfils technical, health and safety and procedural requirements whilst maintaining the integrity of the current arrangements.
We will be utilising the knowledge and expertise of the Metering Expert Panel (MEP) to provide us with feedback as we progress through the project. The project Terms of Reference will be presented at the next meeting of the MEP on 13th April 2022 and updates provided monthly for which we will seek feedback.
If you would like any further information on the project, please speak to our lead Aiyesha Andrade at Aiyesha.Andrade@retailenergycode.co.uk.
Following the publication of Ofgem’s decision on potential short-term interventions to address risks to consumers from market volatility, a Market Stabilisation Charge will be introduced via the modified Standard Licence Condition 24A from 14 April 2022. RECCo has established a formal project to develop and deliver the scheme under the REC.
The Market Stablisation Charge project comprises the following workstreams:
Regulatory: Two REC Change Proposals will be required to implement the scheme. The first, R0034, seeks to give effect to the MSC through changes to the Retail Energy Code (REC), to allow for the effective discharge of the new licence obligation on Energy Suppliers to pay the MSC. This CP has been recommended to the Authority for approval by the Change Panel and if approved will be implemented on 14 April 2022.
The second, R0035 – Market Stabilisation Charge - Administration, has been raised to introduce the necessary governance and charging arrangements to allow the MSC payments to be administered. This CP will be issued to industry for Impact Assessment and Consultation across April and May with a proposed implementation date of June 2022.
Technical Solution: Data items related to the switching process, including the switching date, consumption volumes and the losing and gaining suppliers will be received from central industry bodies. The REC Code Manager will design, build, test and operate the model to apply the Ofgem generated MSC to the switching data to perform the calculations to determine position for each impacted supplier. The outputs will be passed to the RECCo finance department to process the necessary invoices and credit payments to gaining and losing Suppliers.
Stakeholder Engagement: Two stakeholder engagagement sessions will be held during the Impact Assessment and Consultation phases for R0035 to provide an overview of the scheme, operating model and obligations and to allow Parties to discuss the propoasal with the team.
We will shortly launch a new page on the RECCo website setting out further details of the scheme.
