This month we’re highlighting key consultations in the retail energy market sector – including our response to BEIS’ proposal for a Smart Secure Energy System and Ofgem’s call for input on Data Best Practice. Below, you’ll also find a reminder about our forward work plan!
Recently BEIS have consulted on their proposal for a Smart Secure Energy System. We welcome and support net zero work which grows and evolves the markets for demand-side response services (DSR) and energy smart appliances (ESA). We agree that the key considerations include the standards, rules and principles that are needed to ensure interoperability, cyber security, data security/privacy, and grid stability. These also need to ensure good consumer outcomes are delivered.
We believe that RECCo is well placed to support and deliver some of the recommendations set out in the Energy Digitalisation Taskforce report and support the delivery of other initiatives, such as an asset registration solution, that would help achieve the outcomes in this consultation.
We look forward to future engagement and consultation clarifying what issues BEIS are seeking to resolve and how they will prioritise and focus on i.e., is this primarily a consumer engagement and adoption problem or is it one of network stability? Whatever the primary goal, we believe that consumer engagement and consent will be critical to the adoption of these technologies which will facilitate the goal of achieving net zero.
RECCo have responded to Ofgem’s Data Best Practice Call for Input. Whilst we are not captured by the licence framework that requires relevant licensees to follow the Data Best Practice (DBP) Guidance we have nonetheless embedded the principles within the REC. This means that we require the Code Manager to ensure that any data access permitted pursuant to Schedule 12 of the REC is consistent with those principles. We are in the early stages of further work to fully assess how we can adopt the principles more broadly.
In our response, we outline areas we believe could benefit from more detail analysis or assessment.
On 30 September, Ofgem published its first stage review of the DCC regulatory framework that will underpin DCC’s future role to 20401. The new arrangements will not only ensure the continuing operation and maintenance of the communication network, but also how the systems can evolve and manage change as the UK transitions to net zero. Ofgem are consulting on two options:
Option A
A variation of the current DCC regulatory framework. It continues with a third party-owned licensee, appointed through a competitive tender, and subject to a price control. It will also aim to strengthen DCC’s incentives to deliver quality and cost-effective service, improve accountability to DCC customers and ensure uncertainty can be managed by allowing for a controlled change in DCC’s role over time.
Option B
An alternative model with more significant changes to the regulatory arrangements, with a range of possible options on how this could be achieved. It would remain a licenced entity, but it would be accountable to its users who drive performance.
The deadline for responding is 16 January 2023. We would be keen to share our high-level approach with stakeholders to help inform our thinking ahead of a formal submission of our response.
Third Party Intermediaries
Ofgem has published advice to microbusinesses in relation to the roles of TPIs and the rules that must be followed.
What are our key priorities for the retail energy market in the future? We're in the process of building our forward work plan for 2023-2026 right now! The plan will set out our key strategic objectives for 2023-2026. The diagram below shows our high level timeline for developing and publishing the plan. We're currently in the collaborative section of our planning - engaging with stakeholders through workshops, webinars and bi-lateral meetings. Want to have your say? You can email us at: recco_strategy@retailenergycode.co.uk
