Central Switching Services: Currently costs for the design, build and test of the Central Switching Services are recovered through the Smart Energy Code (‘SEC’) charges. To provide as complete a view of possible future RECCo costs, the future CSS operational charges have been included in the 3 year projections. It is recognised that prior to RECCo taking responsibility for such costs that further industry consultation will be necessary. For planning purposes only, and to ensure readiness if such charges are recoverable through the REC, RECCo is discussing with DCC options for establishing the charges recovery model and process. While CSS is expected to go-live in calendar year 2022, RECC has proposed to DCC that charges should align with financial and regulatory years and that RECCo would take on funding responsibility from April 2023. On migration of the charges to RECCo, Parties should see a corresponding reduction in SEC charges.
Gas Enquiry Service: The REC requires the provision of a Gas Enquiry Service (‘GES’) from CSS go-live. RECCo expects that Xoserve, given its unique data access position, may provide this service to industry and will fund the design, build, test and implementation costs to go-live date. Thereafter, RECCo will be liable for the operational costs. During 2021 RECCo willnegotiate a commercial contract with Xoserve for the provision of the GES. This contract will reflect the key RECCo principles of securing value for money, continuing efficiency development, service providers being subject to performance assurance monitoring, a fair balance of risk and reward, and challenging but achievable KPIs. Should the GES be provided outside of Xoserve’s regulated pricing regime, or through its sister company, then RECCo will carry out a pricing validation exercise to ensure that the proposed commercial offering is market reflective given the unique position of the service provider.