As we approach the publication of the RECCo Strategy and forward work plan in January 2022, we want our stakeholders to be aware of the requirements and what it means for them.
Our proposals will include a draft budget for 2022/23 and forecast for the following two years, as set out in the REC:
“The REC Board shall, in advance of each Financial Year, prepare a strategy setting out the key activities which RECCo expects to carry out during that Financial Year and, to the extent reasonably foreseeable, in each of the two subsequent Financial Years.”1
This is an iterative process, giving our stakeholders the opportunity to review and respond to our draft proposals. Our stakeholder event on 15th December is an opportunity to hear first-hand our thinking so far and how you can help shape the strategy.
We will publish the draft strategy and budget on 7th January 2022, with comments invited by 28th January 2022 in line with the timescale set out in the REC.
The RECCo Board will consider any revisions to the strategy and forward work plan that may be recommended to it following consideration of stakeholder consultation responses. The Board will also consider any corresponding revisions to the draft budget before it is published as its good faith estimate of the costs that are anticipated to be incurred in 2022/23 in delivery of the strategy and forward work plan.2
The timetable for production of the current strategy and forward work plan were constrained by our mobilisation start date, with work only beginning in earnest following the 1st September Retail Code Consolidation date.
However, now we are operational, the development of future plans can be a more organic process, taking into account feedback from stakeholders gathered throughout the year, with ideas being workshopped and developed on a more agile basis building towards the formal consultation and sign-off, as set out above.
We will therefore aim to commence formal engagements in the summer of each financial year and seek to baseline proposals throughout each autumn. We hope this will provide all stakeholders, and funding parties in particular, more time to consider any impacts on them.
In the meantime, we also aim to provide as much cost information on the second and third years of our strategy as is possible. We have seen a changing supplier landscape and are mindful this may impact REC in the shape of services and processes we provide, where we need to cater for a different spectrum of supply business types.
In ‘Issue 6 of ‘inside RECCo’, we set out some early thinking on the work we might undertake over the next few years. This includes our enduring work of service delivery and service enhancements which remain front and centre of our focus and known RECCo responsibilities (i.e. the implementation of the new switching arrangements and REC V3.0 and continuation of our Theft Reduction Strategy work as required under the REC).
Beyond these areas, we have been considering other possible workstreams which might be appropriate in the light of emerging energy market requirements. For example, just as the industry is focusing on the road to net zero, we see a role for RECCo in supporting industry to reach these ambitions. We believe we should include a new Sustainability related Strategic Objective and it should be reflected in our mission statement.
All these areas will form part of strategy and forward work plan which is currently being developed by our Executive team and Board, focusing on meeting our strategic objectives. We have published a short anonymous survey to help gather your feedback on potential focus areas. We appreciate all inputs and feedback. You can respond to the survey here. We look forward to discussing these and our proposed new strategic objectives with you at our upcoming event.
1REC-Main-Body-v2.0.pdf (retailenergycode.co.uk)
As part of our strategy consultation in January 2022 the REC Board will, as required by the REC, share indicative costs for the key activities. After considering REC Party comments the REC Board will then determine its final strategy and shall use the strategy to determine and agree its Budget for the coming financial year.
The REC Board will then issue the 2022-23 Budget to REC Parties in the first week of February for their consideration. The budget will be developed using a zero-based budgeting methodology which clearly distinguishes between those costs items which the REC Board consider at its discretion will further the REC Objectives, and costs necessary to comply with legally binding obligations to which RECCo is committed in accordance with the REC.
Any Party may appeal the decision of the REC Board to approve the budget to the Authority within ten working days of that decision being notified to Parties. Any appeal brought must be specific to one or more individual cost items, not to the budget as a whole.
We are planning a Budget engagement day in mid-February where we will present the Budget to REC Parties. The date of the engagement day will be confirmed in January 2022.
National Energy Action had a Fuel Poverty Awareness day on 3rd December.
The aim of this day is to highlight what support is needed to keep more people warm and well this winter and beyond.
If you’d like any more information and to learn more about all the good work NEA are doing please follow the link here.
If you would like any more information on our strategy development work, please contact Suchitra at: RECCo_strategy@retailenergycode.co.uk
Have you registered for our Stakeholder Strategy Event on 15th December? You can register here!
