Last month, we updated you on our two focus areas for the Switching Programme; CSS Go-Live Readiness and Switching Programme Exit Readiness.
We have made good progress over the last month in both areas. We are currently responding to formal readiness assessments from the Switching Programme to provide evidence and assurance of our service readiness for CSS Go-Live. This will input into the wider assessment of formal Switching Programme milestones by the Switching Programme Delivery Group.
We are also working with the DCC to complete end-to-end run throughs of the new processes under REC V3, including ‘war gaming’ different scenarios to ensure the process is working as expected.
The last meeting of the Regulatory Design User Group (RDUG) was held on the 14th April 2022. The group reviewed the final changes required to the REC V3 baseline, including changes to the REC Data Specification.
These changes went to the final meeting of the Regulatory Group on 28th April and we are pleased to report that the full scope of REC V3 was successfully baselined, a significant milestone, ready for implementation as part of Change Proposal R0041 on 18th July 2022.
We have also continued to work with Ofgem on updates to the Switching Programme’s Post Implementation Plan, and RECCo’s role in supporting the transition from programme governance to enduring REC governance. The Switching Programme Change Request (CR-D139) has since been issued for industry consultation, and will go through the Switching Programme change control process to be formally baselined.
RECCo has also been working closely with the REC Code Manager to ensure a robust stakeholder engagement plan is delivered in the lead up to REC V3.0 go-live. You can find out more on what’s coming up by taking a look at the REC Code Managers engagement plan. As part of the series of engagements, an introduction to REC V3.0 webinar will take place on 12 May 2022 (10:00 - 12:00) to give stakeholders the opportunity to learn what is in scope of REC V3.0 and what these changes mean to you. You can register for the event here.
If you’d like to speak to us regarding the project and the REC’s readiness for Switching Programme implementation, please contact our project lead Jon Hawkins at info@retailenergycode.co.uk.
We have issued a consultation on DCC Service Provider Performance Charges. This follows a proposal from Ofgem that some of the DCC’s Switching Service Level Agreements (SLAs) under the REC could be subject to assurance through Ofgem’s regulated price control rather than the REC Performance Assurance Framework (PAF).
The consultation is available on the RECCo website and we welcome responses by 5pm on 16th May 2022.
In February 2022 we commenced a Metering Codes of Practice (CoP) Consolidation Review project. This project aims to consolidate the metering CoPs under the REC into a single set of metering arrangements alongside a streamlined audit process, which will be delivered via a single service provider.
The Metering Code Consolidation Review project comprises of the following workstreams:
The first stage of this workstream is to review the current metering CoPs and propose what could be consolidated. Our lead consultant, Rob Short, has started this work by breaking down the current CoPs into a step-by-step “metering journey” which encapsulates the pre-installation, installation and post installation stages.
Each step will be reviewed, and recommendations made for industry consideration. Rob has completed the work on the pre-installation stage, and this has been passed to an external Metering SME for peer review ahead of being shared with the REC Metering Expert Panel (MEP).
Following completion of the review a REC Change Proposal will be raised and the project team are working closely with the Code Manager on the CP plan.
Once the CoPs are consolidated into a single set of metering arrangements, we will procure a single service provider to manage the metering accreditation scheme. We are currently working on our Procurement strategy to robustly plan what this will look like.
An introduction to the Metering Code Consolidation Review project was presented to the MEP on 13th April. The aim of the session was to explain the work being undertaken and the timescales behind the project. A useful initial discussion took place with valuable feedback for the project team to consider and address through the duration of the project.
We will be making updates to the dedicated area on the RECCo website as the project progresses, as well as providing monthly updates via our newsletter and via the Metering Expert Panel area of the Portal.
There will be a period of mobilisation of any new audit service arrangements starting in January 2023, where the appointed service provider will become familiar with the new set of arrangements, including development of processes and preparing for the next audit cycle.
If you have any questions on the project, please contact the Project Lead, Aiyesha Andrade at info@retailenergycode.co.uk.
On 16th February 2022, Ofgem published a decision document to introduce two measures which they believe are in consumers’ interests. This includes a requirement for suppliers to pay a Market Stabilisation Charge (MSC) when acquiring new customers.
On 14 April 2022, Ofgem’s Market Stabilisation Charge (MSC) went live. Ofgem has created a dashboard on its website showing the MSC rate that will be applicable for gas and/or electricity for the forthcoming week, together with historic data. The updates made to date confirm that the MSC has not yet been triggered.
As we reported in last month’s newsletter, RECCo initiated the MSC project to design, develop, test and implement a solution under the REC to operationalise the scheme. This project comprises of three workstreams:
The first REC Change Proposal, R0034, is to introduce the vires for RECCo to operate the scheme and was approved on the 8th April 2022 and implemented on the 14th April 2022.
The second REC Change Proposal, R0035, which sets out how the scheme will operate is now in progress. The initial assessment report, high level solution overview and change proposal plan were published on the 1st April 2022 and the CP is currently in the impact assessment phase.
The final Change Report will be published on the 10th June and the CP is due for authority determination on the 24th June. Further details of both REC change proposals are available on the REC Portal.
All the requirements and process maps required for the administration of the MSC have been documented and approved by the joint RECCo and Ofgem project board in line with the R0035 plan. Work has commenced on the technical solution and the project team are working with the data providers and Code Manager on designing and building a technical solution which is in line with the project objectives of being robust and efficient.
The target implementation date for the technical solution is the 30th June, after which point switching data from the 14th April 2022 onwards will be processed, and the first set of invoices will be produced if the MSC has been triggered.
RECCo and the REC Code Manager jointly hosted a stakeholder event on the 22nd April to give REC Parties an opportunity to speak to the RECCo project team on how the administration of the MSC will work, the rationale behind the process design and to support parties in their Impact Assessment of R0035.
It was also an opportunity for interested parties to ask questions directly to RECCo regarding the administration of the scheme and Ofgem regarding the policy. We have created a dedicated area on the RECCo website which includes key details of the MSC project including an explainer video, our project plan and a Q&A sheet.
A second Stakeholder event is planned for late May/early June to support parties in responding to the R0035 Consultation.
On 31st March, Ofgem issued a consultation on revisions to the MSC methodology. In summary those proposals included:
The consultation closed 14th April and we await a decision. None of the proposals impact upon the work being undertaken by RECCo, as set out above, they impact upon Ofgem’s calculation of the MSC rate only.
If you have any questions on the MSC project please contact Tracy Hardy at info@retailenergycode.co.uk.
The Market-wide Half-Hourly Settlement (MHHS) programme in the electricity market was launched following an Ofgem decision in April 2021.
The programme has since been stood up and is moving at pace to deliver the reforms needed to implement the new arrangements, and the Target Operating Model recommended by the former Elexon-led Design Working Group.
At RECCo, we are responsible for the ongoing effective and efficient governance of the retail energy market and management of REC Services. We are disappointed not to have been designated as the enduring governing body for the Event Driven Architecture (EDA) for MHHS, however, we continue to be responsible for ensuring that the MHHS requirements impacting the REC and REC Services are delivered and that the solutions will continue to deliver positive outcomes for consumers and competition in the market.
We have now formally established our MHHS Project, which is responsible for:
Each of these areas will form a dedicated project workstream, ensuring a consistent and dedicated focus on each requirement. Further details can be found on our new MHHS page on the RECCo website, where you will be able to access regular updates on the project status, including our latest project plan and there will be further updates in our newsletter.
If you have any questions regarding the RECCo MHHS Project please contact the Project Lead, Jon Hawkins who will be happy to discuss this with you.
