Our Strategy and Forward Work Plan 2023-26 sets our vision and key priorities for the next three years. This plan ensures that we will continue to facilitate the efficient and effective running of the retail energy market.
On 25th January 2023, we presented the key points from our Strategy & Forward Work Plan in a webinar. You can watch the recording here and read a summary of our key achievements, priorities and our financial projection for the future below.
Our Forward Work Plan 2023-26 builds upon the strategic foundations and plans we set out in detail and delivered last year. We’re proud to have continued providing, improving, and evolving our fundamental services to all stakeholders against a challenging market environment. Below is a summary of some of our key achievements in 2022.
Completion of our first year of operation with the Code Manager as a single set of dual-fuel arrangements in the Retail Energy Code (REC).
Go live of the Central Switching Service (CSS) in July, which is now under the governance of the REC following the full implementation of REC version 3.0 and handover from the Switching Programme. From 1st April 2023, the funding of the CSS will transfer from the Smart Energy Code to the REC, representing the single most significant change in our operating budget.
Implementing the Market Stabilisation Charge within three months
Consolidation of the Metering Codes of Practice (on track for completion in April 2023)
Identification and planning for the Market Half-Hourly Settlement Programme
Publication of the Theft Estimation Methodology report with an estimated value of £1.4bn
Establishment of robust financial and commercial processes
Development of the RECCo team and capabilities
Our Forward Work Plan is a continuation of the strategy and plans we put in place last year and delivers some of the projects we were required to defer in 2022. Our primary focus will be the stability, improvement, and evolution of our core
services to ensure that they remain relevant for all stakeholders. At RECCo, we know that through talking, listening, and engaging with stakeholders, we’ll be able to focus on the most effective and time-critical market improvements, ones that will benefit the energy industry, consumers, and the environment. Alongside this, our priorities can be summarised as follows:
Deliver and evolve REC services
Continue to develop REC Policy
Deliver our major Programmes: data and digitalisation, energy theft reduction and market-wide half hourly settlement
Our 2023/24 Annual Budget will be released in February 2023, but the Forward Work Plan summarises our initial projections. Our budget will cover the resources needed to deliver the strategy and REC Services and to discharge our obligations and commitments to the industry.
We are cognisant that we are spending industry and consumers’ money. As such, we must clarify that our projected costs for the next year are higher than expected for several reasons. Primarily, 80% of our increased cost is due to the cost of the Central Switching Service (now under REC governance), the requirements of the Market-Wide Half-Hourly Settlement programme, and the costs related to the Gas Enquiry Service.
Furthermore, some of our 2022/23 projects have been deferred to 23/24. It’s important to note that the expected rebate for 2022/23 will help mitigate the increased costs, and we will continue to reduce the impact of inflation through the fixed price nature of REC Service contracts.
The table below shows the budget for 2023/24 and indicative budgets for the next three years.
The consultation for the Forward Work Plan is open until 3rd February. If you would like to provide feedback or have any questions, please email: recco_strategy@retailenergycode.co.uk
