We were pleased to start the new Financial Year with the publication of our Strategy and Forward Work Plan for 2022-25 which was published earlier this month. I’d like to thank all of our stakeholders for their input into the development of the RECCo strategy and we look forward to engaging with you on our progress over the coming year.
Two priority projects we are working on this month are readiness for Switching Programme go-live in July and the implementation of the ‘Market Stabilisation Charge (MSC)’.
You can find progress on all of our projects over the past month. The MSC is a temporary measure introduced by Ofgem requiring a MSC to be paid from a gaining Supplier to a losing Supplier, in the event a Switch takes place where wholesale prices fall significantly below the level assumed in the price cap.
RECCo’s role is to introduce a robust and efficient process for administering the MSC scheme and the payments under the REC.
The project is currently tracking ‘amber’ because of the tight timescale from inception to operation with the scheme on schedule to become operational at the end of June 2022. Working with the REC Code Manager, we published the proposed legal drafting for R0035 on time for Initial Assessment by REC Parties as part of the REC Change Process.
RECCo and the Code Manager also hosted an engagement session on 22nd April to explain the scheme and answer stakeholder questions. If you missed the session, you can take a look at the recording here.
In other news, as part of delivering against one of RECCo’s strategic aims to further consolidate and simplify retail energy market arrangements, our Metering Code of Practice Consolidation Review project is now well underway. The project involves reviewing and consolidating all of the current metering codes of practice and audit processes under the REC into a single set of arrangements.
This is an important project to streamline current REC arrangements and to provide a better audit experience for market participants. We will be engaging with the industry through a variety of different channels including the REC Metering Expert Panel in weeks to come.
We were disappointed to learn last week of the outcome of Ofgem’s selection process for the party responsible for the ongoing governance, funding and operation of the Event Driven Architecture (EDA) for Market-Wide Half- Hourly Settlement (MHHS).
Whilst we fully accept Ofgem’s decision, we continue to believe that the REC would be the most appropriate body for the enduring EDA governance. RECCo and the REC were established to provide consumer-centric governance of the retail energy market and to deliver positive consumer outcomes.
The EDA must facilitate a consumer-centric approach to managing energy consumption if we as an industry are to fully facilitate the transition to net-zero.
We will continue to proactively participate in the MHHS programme, ensuring consumers and the impacts to the REC, REC Services and the wider retail energy market are appropriately represented.
I hope you enjoy this month's edition of the RECCo newsletter. In here you’ll find important updates across our active projects and REC Services as well as a chance to get to know members of our team.
We also highlight our current consultations for which we are soliciting your contributions on DCC Service Provider Performance Charges.
