Preparing RECCo’s application for the REC Licence
Ofgem has confirmed that the award of the REC Code Manager Licence to RECCo will follow a non-competitive process. RECCo is actively preparing to submit the formal application by 11 June 2025. In parallel, the Executive Team is working closely with the Board to ensure all necessary governance, operational, and compliance frameworks are in place to support licence obligations.
Ofgem has also issued a second consultation on the implementation details of the Code Licences, including changes to the code change management processes. RECCo is reviewing these carefully to ensure alignment and readiness for future requirements.
Publication of Party Performance Ratings
The Board received an update on RECCo’s progress towards enhancing transparency through the publication of Party Performance Ratings. Building on the current phased approach—where ratings have been issued privately and among peers—the Board discussed the proposal for wider public dissemination in 2025, aligning with regulatory best practice and Ofgem’s stated preference for named performance tables.
These ratings, which assess performance in areas such as switching, metering, theft detection, and assurance engagement, have already demonstrated value in identifying underperformance and driving improvements. The Board acknowledged the reputational incentive created through publication and supported the move towards greater visibility, while noting the importance of ensuring data robustness and fairness to mitigate legal and reputational risks.
A REC Change Proposal is being developed to codify the Performance Assurance Board’s (PAB) authority to publish these ratings, underpinned by a transparent, consultative process. The Board endorsed the strategic intent of the initiative, noting its potential to strengthen market confidence, encourage continuous improvement, and ultimately deliver better outcomes for consumers.
Central Registration Service improvement plan
Following its decision on the future management of the Central Registration Service (CRS), Ofgem asked the Data Communications Company (DCC) and RECCo to work together to co-develop improvement opportunities identified by stakeholders during the Consultation. Since January 2025, we’ve collaboratively scoped, developed, and delivered an improvement plan for approval by Ofgem, which is aligned with customer needs and delivers tangible improvements to the service.
The plan is built around five key pillars:
- Address Data Quality
- Change Management
- Engagement & Communications
- Incident Management
- Reporting
DCC will lead the delivery of the plan, supported by RECCo and the Code Manager Service Providers, who will draw on their operational insight and experience. The REC Performance Assurance Board (PAB) will monitor progress and ensure accountability through performance incentives.
Digital Services procurement – preferred bidder
Over the past year, RECCo has been working to consolidate the digital components of the Code Manager service under a single, expert provider. The goal is to create a modern, scalable, integrated digital ecosystem that delivers a high-quality, seamless user experience. This project will help us improve how we manage and deliver the Retail Energy Code (REC) services and will be transformational in supporting our goal of achieving service excellence as the licensed Code Manager for the REC.
Following a competitive procurement process and evaluation of the Best and Final Offer (BAFO) submissions, a preferred bidder has been selected. RECCo will work with the preferred bidder over the next three months to finalise the service design and agree the final contract for its position as our new Digital Services provider.
This marks a significant milestone in the Evolution of the Code Manager Service project. This phase will be known as the Digital Services Project, and the design, build, test, and rollout of the new integrated digital platform are scheduled to be completed by 1 September 2026.
Updating data processing requirements in the REC
Clause 20.8 of the REC Main Body currently places an obligation on data processors of REC Data (defined as Personal Data under the REC) to seek RECCo Board approval before processing such data outside the UK or EEA. Following a review of industry practice and risk, it was concluded that this requirement adds limited value given the safeguards already set out in Clause 20.8(b).
To streamline the process while maintaining compliance, a REC Change Proposal will be raised to remove the Board approval requirement. In the interim, approval authority has been delegated to the RECCo CEO.
Modern Slavery Transparency Statement
The Board approved RECCo’s Modern Slavery Transparency Statement for 2025/26, reaffirming our commitment to ethical practices and transparency across our operations and supply chains.
The statement outlines our steps across policies, risk management processes, and employee training. We will continue to review and publish a revised statement annually in line with the requirements of the Modern Slavery Act 2015.
