2022 is a year of significant development for the REC and we are already making good progress.
It’s a warm welcome from me this month, stepping in for Sid Cox who is currently on holiday and enjoying a well-earned break as we approach the end of the financial year.
I’m pleased to update you on a key milestone this month, the publication of RECCo’s Budget for 2022/23. As required by the REC, the Budget is informed by responses received to our draft Strategy and Forward Work Plan for 2022-2025 and we want to thank everyone for their valuable feedback and comments through the consultation process.
A more detailed summary of the process is provided later in the newsletter.
We ran a webinar on 10th February to walk through the Budget for the year ahead and provide stakeholders with an opportunity to ask any questions directly to the team.
Feedback from the event was positive, with one respondent highlighting in particular our openness and transparency to industry queries. If you weren’t able to join the session, you can watch the recording on our website here. Following completion of the budget setting process we will publish the final version of the Strategy and Forward Work Plan for 2022-2025.
You will recall that in December 2021, Ofgem consulted upon a number of short-term interventions that it could make in order to mitigate against further market volatility, including:
a requirement for domestic suppliers to make all tariffs available to new and existing customers; and
a requirement for suppliers to pay a Market Stabilisation Charge when acquiring new customers.
On 16th February, Ofgem published its decision and statutory notices of modifications to the gas and electricity supply licences to give effect to those proposals from 14th April 2022. Those documents are available on the Ofgem website here.
The decision document also confirms that the mechanism for giving effect to the Market Stabilisation Charge will be set out in the REC. We have been undertaking preparatory work on a no regrets basis in anticipation of the Ofgem decision and have also made a provision in the 2022/23 budget for the cost of running the scheme.
We will now work with the Code Manager to assist Ofgem in raising the necessary changes to the REC and will engage with industry stakeholders as this develops.
I hope you enjoy this month's edition of the RECCo newsletter. In here you’ll find important updates across the REC services and our ongoing programmes, as well as a chance to get to know members of our team.
If you have any comments or suggestions on how we can better engage with you as our stakeholders, please get in touch with us at info@retailenergycode.co.uk.
