Code Reform & Code Manager Licence update
Ofgem has issued a Notice of Proposal to grant RECCo a Code Manager licence for the Retail Energy Code, starting a 28‑day representation period (closing 29 August 2025). However, there will be a further Ofgem consultation on the licence drafting itself.
We seek a broader, principles‑based definition of Code Manager activities covering all activities under the code. We consider that there is risk in the current narrow scope:
- Duplication and/or fragmentation of governance
- Unclear oversight of non‑code “permitted” activities
- Potential conflicts‑of‑interest burdens
- Constraints on innovation and/or strategic delivery, including what a Code Manager licensee can be directed to do as part of a future Strategic Direction Statement.
We’ll progress these discussions with Ofgem.
RECCo Financial Statement 2025
The REC requires RECCo to have its financial performance audited each year and publish its financial statements. Our auditors completed their work in July and met with the Finance & Audit Committee to present their report.
The auditors discussed the key areas of audit risk and confirmed no areas for concern. They also confirmed that RECCo was compliant with all accounting legislation and that no items required explanation. An unqualified audit report has been issued for the financial year ending 31 March 2025.
The rebate due to funding parties for 2024-25 will be returned as a reduction against the invoices to be raised in October 2025.
Market-wide Half-hourly Settlement update
The Board agreed to fund additional resources required for MHHS Qualification from contingency to ensure the Code Manager can continue to process applications and proactively support applicants through the MHHS Qualification process.
The use of contingency was also approved to fund an extension to the MHHS SIT-A testing environment, if required, subject to approval of an industry change request and impact assessment.
REC Service Provider performance update
Our Service Providers continue to deliver against their Service Level Agreement requirements, with only a small number of KPIs missed in the professional services and switching operator delivery, around portal availability and switching timeliness, respectively.
The operational relationship remains positive with all our Service Providers, as we transition to new ways of working through the Evolution of the Code Manager and Enquiry Services Evolution projects. Enhanced governance and increased capacity within the Operations team are paying dividends in improving the oversight and performance management of all our Service Providers.
RECCo stakeholder engagement activity update
- The Board noted that RECCo continues to prioritise broad stakeholder engagement to support delivery of our Forward Work Plan 2025-28.
- Recent highlights include a series of high-attendance events across diverse topics, such as our largest-ever webinar on changes to the Electricity Enquiry Services under Market-Wide Half-Hourly Settlement (MHHS), a collaborative Energy Theft prevention workshop, and a second Code Reform drop-in session to inform our responses to Ofgem consultations.
- We’ve launched a new stakeholder community, offering members flexible ways to engage in the REC Portal Relaunch. Key working groups on Consumer Consent and Tariff Data Standards are also progressing well, with strong stakeholder representation.
- Our first Quarterly Report for 2025-26 has received initial positive feedback on our transparency, alongside the publication of our Annual Stakeholder Satisfaction Survey Report 2025. This demonstrates how stakeholder feedback will inform continuous improvement of REC Services over the year ahead.
- Looking forward, we’re preparing for the REC Party Engagement Day on 30 September 2025. This annual face-to-face event commences engagement for the Forward Work Plan 2026-29 and launches our Annual Stakeholder Satisfaction Survey in October 2025.
