1. Data & Digitalisation
The Board reviewed progress made in Data & Digitalisation (D&D) since July 2022 and the finalisation of D&D strategy.
RECCo has organised its project work into agile ‘epics’ (work breakdown structures) to ensure focus and flexibility. The focus on improving user experience can be seen with the digital navigator and other changes, with more work to come in this area in the future. Enterprise architectural work has started and will continue with a move toward a microservice architecture and API gateway to support future cost reduction, increased security, data reuse and reduced industry change costs. The D&D strategy will be shared with industry and other stakeholders over the coming months.
2. Third Party Intermediaries
Third Party Intermediaries (TPIs) play an important role in the retail market and the Board heard of progress with a new Code of Practice for these entities.
Further to workshops held in March with both Suppliers and Brokers, RECCo has drafted a Third-Party Intermediary Code of Practice (CoP). The CoP is being reviewed, with stakeholders, ahead of submitting it into the REC Change Process, and an anticipated implementation date of 1st October 2023. It was confirmed that this is being developed on an agile basis, initially introduced as a voluntary ‘Category 3’ document. There is further work on the assurance framework that will apply to that CoP and the associated market arrangements which may include a REC accreditation scheme. It was also confirmed that Ofgem and DES NZ have been fully briefed on, and are supportive of, RECCo’s work in this area.
3. RTS Overview
The Board has initiated a ‘deep dive’ programme of reviews into the performance of the REC Service Providers, focusing on one provider at each meeting.
The Board focused on the REC Technical Services (RTS) function of the Code Manager at its June Meeting. The following elements were discussed: delivery against contracted requirements and key performance indicators; continuous improvement, innovation, and growth within the contract; and areas of future development. The Board was pleased to note an overall delivery of 98% against contracted service levels in 2022/23, and the programme of service enhancements on the EMAR and introduction of the Digital Navigator, both of which were delivered without any additional cost to REC Parties.
4. Financial Audit
The Board were provided with an update on the annual Financial Audit, an important activity for RECCo.
RECCo is a limited company and is required to undertake a statutory audit. In addition to good corporate governance, the audit provides important and valuable insight and benefits to the Board, the organisation’s Executive Team, the REC Parties, and other stakeholders.
An audit determines whether an organisation is providing a true and fair view of its financial performance; it provides comfort over the accuracy of management accounts. The audit process does not simply focus on the financial accounts but also challenges the robustness of an organisation’s internal controls and processes, giving an external perspective and valuable feedback. This approach enables the auditors to identify deficiencies in the accounting systems or controls for which recommendations can be made, making the business more efficient and less prone to error. The audit also provides credibility that the financial results are free from material error or malpractice.
The audit of the financial results for the year end 31 March 2023 is currently underway and expected to be completed by the end of this month. The auditors will then present their report to RECCo’s Finance and Audit Committee in July, and the financial statements will be placed before the Board for approval in August. At that time the rebate due for the 2022-23 financial year will be confirmed and, as in previous years, this will be returned to Suppliers as a reduction against their October invoice.
5. RECCo Stakeholder Events
The Board is keen that RECCo has a proactive engagement programme with its stakeholders and was provided with an update at in June Meeting
RECCo is hosting a series of stakeholder events over June and July on a range of key issues so that we can better understand industry views as we progress our 2023-24 Strategy and Forward Work Plan. We will be hosting three ‘REC Services Development Workshops’ in Glasgow, Birmingham and London, an event to develop the Code of Practice for Third Party Intermediaries, and a webinar on the Market-wide Half-Hourly Settlement Programme. We are also exploring the potential for further workshops focusing on consumer issues and priority services registers. These events will provide our stakeholders to provide feedback on issues that most concern them.
6. Annual Review
The Board had sight of a draft of the Annual Review and encouraged to provide feedback.
The Retail Energy Code Company (RECCo) Board is delighted to publish its Annual Review, as required by the REC, which reviews our activities in the 2022/23 financial year.
The Annual Review provides a summary of the operational performance delivered by RECCo and its Code Manager, and other service providers. Our primary focus is the stability, improvement, and evolution of the core REC services to ensure they remain relevant for all our stakeholders. The industry funds us to procure and deliver current and future REC Service requirements, and it is incumbent on us to manage and invest those funds prudently. We are also charged with ensuring best practice and to be innovative whenever possible in an evolving retail energy market.
Read the report in full here.