The RECCo Board, supported by expert advisors, is running a competitive procurement process to secure Code Manager Service Providers to enable the delivery of the REC objectives and the management of RECCo. Following market engagement events in Q3 2019, tender documents were published in Q4, 2019. It is anticipated that contracts will be awarded in Q2, 2020.
The RECCo Board has developed an overview of the methodology and service areas proposed for the Code Manager services to be procured against. It does not intend to be prescriptive in determining how each service area is being delivered but proposes to set out a methodology for each service area that will enable potential service providers to offer flexible, innovative and best in class services. Service providers will be expected to do this by:
- delivering the REC strategy on behalf of the RECCo Board;
- focusing on quality-based deliverables and outcomes;
- ensuring a consumer centric approach to code development;
- prioritising and driving change which supports the overall REC strategy and code objectives;
- removing barriers to change and market development;
- delivering innovation and continuous service improvement across all service functions;
- developing and implementing a digitisation and digitalisation strategy;
- proactively and innovatively engaging with stakeholder engagement; and
- effectively managing RECCo service providers to ensure best value is achieved.
Launch of REC Code Manager Services Procurement - Q4, 2019
The Retail Energy Code Company Ltd. (RECCo) has launched the procurements for the Retail Energy Code Manager Services which will support the delivery of the challenges set out in the REC vision as outlined in Ofgem’s Switching Programme and Retail Code Consolidation Consultation:
“The REC will facilitate the efficient and effective running of the retail energy market, including its systems and processes. It will promote innovation, competition, and positive customer outcomes”.
The procurement follows extensive consultation with our key stakeholders: Ofgem who continue to develop the REC, potential service providers across the spectrum of activities needed for the REC, and Parties to the Code who ultimately must meet the new code governance requirements.
This procurement provides RECCo with an opportunity to secure the best possible capability to deliver its Code Management responsibilities. The Procurement Strategy has been developed to make its service requirements competitive and attractive to harness ‘best of breed’ expertise to deliver the full suite of governance services. As a result, RECCo is seeking to award contracts across three key service areas:
- REC Performance Assurance;
- REC Professional Services; and
- REC Technical Services.
RECCo intends to empower its Code Manager Service Providers to deliver services in line with REC objectives: a greater focus on consumers and an innovative, collaborative and efficient service delivery approach. Code Manager Service Providers will be accountable to RECCo and REC stakeholders through a performance regime which measures both quantitative and qualitative outcomes. They will be subject to independent performance assurance and an annual stakeholder review. These are fundamental changes to current code governance practices that will help ensure high standards and continuous improvement over the duration of the Retail Energy Code (REC). To this end RECCo, has adopted a packaging approach which it believes will provide flexibility to changing needs over time as the REC and the market continue to evolve.
An important part of the process is the creation of a Procurement Evaluation Panel (PEP) to consider all bids for Code Manager services. It will be led by an Independent Chairman and have members from Parties with code governance and procurement expertise; a member representing consumer interests, and a member able to address digitalisation as it applies to code governance. The PEP will be independent of the RECCo Board, whose role will be to ratify the outcome of the procurement process.
Should you have any questions regarding this procurement, please contact the team using the email@example.com.
Market Engagement – Information for Potential Service Providers - Q3, 2019
RECCo hosted a ‘Market Engagement Day’ on 11 September to share its current thinking about the procurement approach with potential service providers. The full prospectus from that event is published here along with a set of ‘Questions and Answers’ recorded at the session.
Following the ‘Market Engagement Day’ RECCo hosted a series of bilateral meetings with potential service providers. A consolidated summary of Questions and Answers from those meetings is also published here, Bilateral Q&A.