The Switching Programme is an Ofgem led programme that aims to improve consumers’ experience of switching energy supplier, leading to greater engagement in the retail energy market. For this to happen, a new, faster and more reliable switching process has been designed over recent years ahead of being implemented.
Leading this transformational Switching Programme, Ofgem, with the Data Communications Company as its delivery partner, will deliver a new Central Switching Service (CSS) to facilitate the new switching arrangements, expected to go live during summer 2022.
As we move closer towards the Go-Live decision for the switching programme, we are focused on ensuring that each of our programme workstreams is ready to support this decision and implement the new switching arrangements in REC governance. In this newsletter edition, we have provided an update on the current status of each of our programme workstreams below:
Workstream 1 - RECCo Strategic Oversight
RECCo continues to engage in all relevant programme governance groups, such as the Delivery Group, Implementation Group, Post-Implementation Working Group, Combined Working Group and various System Integrator Working Groups. This is in addition to our direct engagements with both Ofgem and the DCC. RECCo is also participating in the Switching Programme’s Issue Resolution Group to monitor any transition and early-life incidents that may impact the successful cutover, implementation and operation of the new switching arrangements.
As part of our engagements, RECCo has been working closely with Ofgem on the development of the E2E Post Implementation Plan which covers the handover of programme governance to enduring REC governance at the point the Switching Programme exits. This has included the development of RECCo’s Acceptance Criteria for the achievement of the full Switching Programme Exit decision, which will be considered as part of the Programme’s formal assessment of this milestone. This will ensure a seamless transition of responsibilities from the Switching Programme to RECCo, at the point that system and service stability have been achieved after Go Live, expected on 18 July
Deliverables
Operational Stability
Operational Readiness
People
Change
Required deliverables from the Switching Programme for RECCo to take responsibility for the governance of the new Switching arrangements. This includes the handover of relevant programme artefacts, enduring plans and processes being in place and achievement of ECAP and Programme Exit criteria.
Evidence that the new arrangements are sufficiently stable to support programme exit and full transition to enduring governance. This includes outstanding testing defects and incidents being with agreed tolerances and remaining risks and issues being within RECCo’s scope and power to appropriately resolve.
Confirmation that RECCo is operationally ready for programme exit and full transition to REC governance. This includes confirmation that the REC Code Manager, Service Management and Performance Assurance processes are working as expected.
Confirmation that enduring roles and responsibilities are in place and appropriate knowledge transfer has taken place.
Confirmation that no outstanding changes are required under programme governance to achieve system and service stability and outstanding change requests have been handed over to the REC Code Manager for consideration in the REC change management process.
Workstream 2 - REC Code Manager Preparation
RECCo has been working with the REC Code Manager to ensure we continue to deliver a robust Code Manager Service that meet the new switching arrangements from 18 July 2022.
All of the Code Manager teams and personnel are in place and trained to support the Switching Programme. Any required updates to processes, reporting and systems / environments, including the REC Portal, Service Desk and EMAR and being finalised.
There has been very close cooperation and interworking between the Code Manager and DCC operational teams to ensure a seamless service. This has included process deep-dive sessions, and wargaming activities to tease out all eventualities. The REC Code Manager has also been engaging with other REC Service Providers, such as the Electricity Enquiry Service (EES) and Gas Enquiry Service (GES) Providers to ensure that robust processes are in place.
The REC Code Manager’s stakeholder engagement plan is now well under way, delivering a wealth of communications in the lead up to REC V3.0 go-live. You can find out more about what’s coming up by taking a look at the REC Code Manager’s engagement plan. Watch out for detailed communications being published on the REC Portal, along with various bulletins from the Code Manager as we progress towards the Go-Live date.
Workstream 3 - Enquiry Service Delivery (EES & GES)
RECCo is working with the REC Code Manager, Switching Programme and the Electricity Enquiry Service (EES) and Gas Enquiry Service (GES) Providers to ensure that the enquiry services meet the new Switching Programme requirements for Go-live.
RECCo, the REC Code Manager and the Enquiry Service Providers supported a two part REL and Enquiry Service Seminar that provides useful information for parties on the changes that are being made. If you were unable to join these sessions, the recordings , the session slides and a useful document of key FAQs are available on the REC Portal. In addition, the Enquiry Service User Guides and API Technical Specifications have been published on the REC Portal which provide more detail on how the services will operate under the new switching arrangements.
The REC Code Manager is currently writing to all non-REC Parties who need to enter into Access Agreements for the continued provision of GES services. This will ensure that these parties can continue to access the services, seamlessly, from Go-Live. Third Party Intermediaries (e.g. Price Comparison Websites) have also been informed of how they can apply to access new data, such as the REL Address, from the EES from Go-Live.
RECCo is also working hard to make sure that it has the required service provider contracts in place to deliver the EES and GES from Go-Live. We are currently on track to uplift the current EES contract to contain the requirements of the new switching arrangements. For the GES, we continue to meet with the GES Provider to progress putting in place the required contract, in order to find resolutions to outstanding issues.
Workstream 4 - REC v3.0 Drafting
On 28 April 2022, the Switching Programme’s Regulatory Group approved the final documents and artefacts and the REC Version 3 drafting has now been baselined. The formal changes to implement this in the REC are being progressed through the Authority Led Change Proposal R0041. The Change Panel is expected to vote on a recommendation to the Authority on 7 June 2022 and an Authority decision is targeted by 20 June 2022. Once approved, these changes will be implemented on 18 July 2022 as part of the Switching Go Live.
As well as R0041, there are several other Change Proposals with a proposed implementation date of 18 July 2022, to align with CSS Go Live:
A number of new and updated REC Category 3 products, that will be introduced at Switching Programme Go-Live, have also been published on the REC Portal. You can access these, and other REC Version 3 documents in the REC V3 - Baselined Documents page on the REC Portal. The full suite of new and updated Category 3 documents will be published by 6 June 2022.
As part of the series of REC Code Manager stakeholder engagements, an introduction to REC V3.0 webinar took place on 12 May 2022 giving stakeholders the opportunity to learn what is in scope of REC V3.0 and what these changes mean to you. Details of this Webinar and a recording of the event have been published on the REC Portal. The REC Code Manager will be arranging further stakeholder engagement events, so ensure you look out for notifications of these in the REC Code Manager’s weekly bulletins.
If you have any comments on our readiness for the Switching Programme, please contact Jon Hawkins at Jonathan.Hawkins@retailenergycode.co.uk.
The obligation for RECCo to administer Ofgem’s Market Stabilisation Charge (MSC), was implemented on 14 April 2022.
Since then we have been working to develop the supporting governance arrangements, technical solution and end to end business processes, and we are on target for delivery at the end of June.
The MSC Project comprises of a number of workstreams and you can read an update on each of the workstreams below:
REC Change Proposal R0034, which introduced the vires for RECCo to operate the scheme, was approved on the 8th April 2022 and implemented on the 14th April 2022.
REC Change Proposal R0035, which sets out how the scheme will operate, is currently in the consultation phase of the REC Change process. Responses received during the impact assessment have been addressed and as a result some amendments have been made to the drafting of the change in how the process will be administered. For example, the schemes payment terms have been extended from 5 to 10 working days, following industry feedback.
The consultation period ends on the 1st June and the final Change Report will be published on the 10th June. The change proposal is due for authority determination on the 24th June.
Further details on both REC change proposals are available on the REC Portal.
The contract for the build of the technical solution was awarded at the end of April following a competitive process. Work has now work commenced on the solution design. The solution is being built using an agile methodology, so that the team can progress at pace and decisions can be made quickly. The service provider is working closely with the data providers and RECCo to enable the end-to-end solution to be designed, developed & tested, ready for the target operational date of the 30th June. The team is currently on track to meet this date.
Our second Stakeholder event took place on the 23rd May to coincide with the consultation period of R0035. The event focused on addressing points raised during the Initial Assessment phase of REC CP R0035, and changes made to the administration process as a result. The event also provided a re-cap on the overall process and project timelines to support REC Parties in responding to the REC CP R0035 Consultation. You can watch the session here.
The REC Code Manager will shortly be reaching out to all Suppliers to request contact and bank details which will be used for administration of the scheme so please look out for the request!
Further information on the MSC Project can be found on the dedicated area of the RECCo website which includes the most up to date projects Plan on a Page (POAP) and a FAQ document.
As stated in last month’s edition of our newsletter, Ofgem has been consulting on revisions to the MSC methodology. Ofgem recently published a decision document on further revisions to the MSC which came into force on 25th May.
The revisions include:
The full decision document can be viewed here. Following review, we can confirm none of the methodology changes impact how the scheme is to administered by RECCo under the REC.
If you have any comments on our MSC project, please contact out project led at Tracy Hardy at Tracy.Hardy@retailenergycode.co.uk
Under the REC, RECCo is required to develop a Theft Reduction Strategy which we are progressing as part of our overall strategy and forward work plan for 2022-25.
This past month, Jon Dixon and Aiyesha Andrade from RECCo attended the 2022 conference of the UK Revenue Protection Association (UKRPA) to provide an update on our Theft Reduction Strategy, covering both improvement to existing theft related services and seek feedback on some of the newer initiatives that are being explored. The full RECCo slide deck from the conference is available on our website.
The strategy seeks to ensure that the many initiatives that are being undertaken to mitigate the problem of energy theft, whether as part of the REC services or elsewhere, can work more effectively together. For instance, we consider that the better sharing of data - whether from the incentive scheme, ETTOS or market participants own reporting - can better target and strengthen the overall industry response.
Prevent
Detect
Respond
Activities to deter theft, partly through raising awareness of risk, prevention of organised tampering, etc. e.g. funding of the Stay Energy Safe campaign.
Improve the data, analytics and incentives for industry parties to investigate and detect theft.
Ensure parties are capable of taking appropriate actions when cases of theft are found, and that data and lessons captured to better inform future prevention and detection activities.
We will be further exploring the individual components of the strategy in series of workshops in the coming months, covering areas such as:
In order to rebalance efforts towards non-domestic cases, the Code Manager developed an alternative methodology for 2022/23, which includes a consumption based weighting factor. However, the theft targets themselves and aggregate incentive scheme values for 2022/23 have been maintained, at £7.5m for gas and £14.5m for electricity.
We would like to continue the work initiated by the Code Manager to ensure that the scheme is effective in targeting industry efforts and encouraging the right behaviours. We welcome views from participants in the schemes on how they could be further improved.
Following on from presentations given to the UKRPA and the useful feedback received, we would like to explore the potential use case for a data sharing portal. We consider that this could, for instance, streamline theft reporting and lead to the better targeting of industry efforts to mitigate it.
If you want to register your early interest in attending future energy theft related workshops, have any suggestions for other theft related topics to be workshopped, or questions on the Theft Reduction Strategy more generally, please contact us at: theft@retailenergycode.co.uk.
The MHHS programme in the electricity market was launched following an Ofgem decision in April 2021.
The programme has since been progressing 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.
RECCo is responsible for ensuring the ongoing effective and efficient governance of the retail energy market and management of REC Services. We are therefore 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.
In recent events, the MHHS Change Requests CR001 and CR003 have been updated, which has resulted in updates to the MHHS Implementation Plan. This includes the formal milestone for the physical baseline of the design being delivered (M5) moving to July 2022, and the subsequent milestones for completing the detailed design and code drafting (M6) moving to April 2023.
RECCo has been working with the MHHS Programme and the Cross Code Advisory Group (CCAG) to set out the detailed activities and plan, in order to achieve the M6 milestone once the M5 milestone has been achieved. This is expected to be agreed in the June's CCAG meeting.
RECCo has also been engaging closely with the MHHS programme to discuss RECCo’s enduring role in supporting the programme, in relation to its wider role, to facilitate the changes to REC Service Provider systems and processes needed for MHHS.
As a result of this engagement, RECCo has submitted a new Change Request, CR008: RECCo membership inclusion of Level 2 and 3 governance groups, to formally propose RECCo’s inclusion as a member of key MHHS governance groups.
If approved, this change would mitigate risks that impacts to REC systems, processes and governance and are not appropriately considered or identified in programme decision making. It would also ensure that these impacts are appropriately represented on behalf of REC Parties, Service Providers and wider stakeholders. Details of the Change Request can be found on the MHHS Programme Change Control webpage.
RECCo released its latest video to the RECCo Programme Explainer Series, presenting our role in the Market-wide Half-Hourly Settlement (MHHS) Programme. In this session, you will hear from Jon Hawkins, our project lead, telling you all about the programme and our involvement to ensure REC impacts are fully considered.
If you have any comments on our role and responsibilities under the MHHS programme, please contact Jon Hawkins at Jonathan.Hawkins@retailenergycode.co.uk.
As part of Retail Code Consolidation (RCC), Ofgem set out its ambitions for RECCo to take forward the further consolidation of the REC metering codes of practice into a single set of arrangements and to replace the existing audit arrangements with a new single scheme auditor.
RECCo set out plans to take forward this project within its Strategy and Forward Work Plan for 2022 – 2025 and consolidation activities have already commenced since February 2022. We are pleased to report that significant progress has now been made with the proposed drafting and we are looking for your input.
The first half of the drafting has been completed and is ready for download and review on the REC Portal by 21st June 2022.
We encourage all Parties to review the current set of drafting and provide any comments and feedback back to the team. Comments should be entered in the last column of the spreadsheet and emailed directly through to Robert.short@retailenergycode.co.uk, where your feedback and comments will be collated.
Whilst not all comments may result in changes to the drafting during the scope of this project, we will be keeping a log of all suggestions to consider as part of ongoing reviews.
The second part of consolidating the metering arrangements will be available for review and comments on the 13th June 2022. We welcome all feedback by 30th June in order to be considered as part of this project.
To aid your understanding of the project and encourage feedback to help the development of the drafting, we are hosting a Metering CoP Consolidation Introductory session on the 7th June 2022. During this session we will provide an overview of the project, the delivery timescales and the proposed new structure of the metering arrangements. Register your interest for the webinar.
The secondary element of the Metering Codes of Practice Consolidation review is to appoint a single Service Provider who will deliver the new audit scheme. We will shortly be providing information on the tender process and issuing invitations for expressions of interest.
If you have any questions in the meantime, please contact info@retailenergycode.co.uk.
We value your feedback!
Following the theft calculator workshop in March, Energy Saving Trust have put together a questionnaire on some topics which require further scoping and some input from tool users (Custom appliances module and additional business types).
The survey is still live and we would appreciate 10 minutes of your time to provide feedback. If you have any questions please contact theftcalcsupport@est.org.uk