Working with existing code organisations, RECCo will enable the effective transition of existing services e.g. ETTOS, ECOES and metering auditor services, that from Retail Code Consolidation (‘RCC’) will be provided through and/or governed by the REC. For the second half of the Budget year, RECCo will have responsibility for the effective and efficient delivery of services to enable Retail Code Consolidation. These are not new industry costs and industry should see a corresponding reduction in existing code bodies’ budgets from September 2021.
In 2020, RECCo and the existing code bodies, along with Ofgem, established a close working relationship, including agreed governance arrangements via the Retail Transition Working and Steering Groups, to enable a smooth transition for Retail Code Consolidation. This is further facilitated by RECCo, SPAA and MRASCo having several Directors in common. Budgets across the three organisations have been developed with regard to each organisation’s responsibilities and the uncertainty on timeframe of when costs may crystalise e.g. system changes arising from the switching programme. Therefore, a conservative approach has been adopted by each organisation.
RECCo is also cognisant of external developments and that expectation that REC will have a role in, if not shape them. From its establishment in February 2019, RECCo has provided support to the Switching Programme and to RCC, both of which are being progressed through Ofgem-led Significant Code Reviews. This support has been in the form of direct provision of Subject Matter Expertise, and the provision of funding for the Switching Programme Coordinator, and Licensed Party Assurance, both of which were procured and continue to be contract managed by Ofgem. These programme funding requirements will continue to make up a significant proportion of the Budget and longer-term support to the end of 2022. From RCC, RECCo will play an enhanced role in the Switching Programme, taking on Party Under Integration (‘PUI’) responsibilities. During 2021, the Switching programme will move into User Entry Process Testing (‘UEPT’) and this may have consequential impacts on the REC, RECCo and our service providers.