Update on the Forward Work Programme
The Board received an update on the development of RECCo’s Strategy and Forward Work Plan (FWP) for 2025-2028. The Strategy document was published on 16th December 2024 for consultation and will remain open for feedback until 5th February 2025. This adjustment to the original consultation timeline allows stakeholders to consider the Strategy alongside the Forward Work Plan (FWP) which will be published on 15th January 2025 and remain open for comment until 5th February 1015.
The Board discussed the potential implications of the forthcoming Ofgem Strategic Direction Statement (SDS). RECCo has liaised with Ofgem and highlighted the need for SDS to align with the planning cycle of the code bodies. RECCo has received sight of issues likely to be in the SDS, and our FWP draft is consistent with these. It was agreed that a caveat should be included in the FWP, noting that work plans and associated budgets may need to be revisited when considering the final SDS, and there may still be risks or unforeseen work required of RECCo.
Digital Services Procurement
RECCo has prioritised enhancing the digital services provided by the REC based on valuable stakeholder feedback received over the past year. The Board has decided to re-procure the digital solutions offered by the Code Manager Service Providers. These solutions, which include the REC Portal, EMAR/Digital Navigator, REC Service Desk, and Data Analytics, will be replaced by an integrated suite of solutions. The new procurement will be treated separately, distinct from the broader Code Manager service.
The Board was provided with an update on the ongoing Digital Services procurement process. While the details remain commercially sensitive, progress continues toward delivering a more cohesive and efficient digital service suite.
Change Process Analysis
The Board was presented with an analysis of the REC change procedures, emphasising the volume and complexity of managing REC changes while highlighting the procedural outcomes and status tracking. The analysis categorises these proposals into various outcomes, offering insights into their progression and resolution:
- 232 CPs raised, including 34 currently classified as “Issues.”
- 54 CPs have been withdrawn from the process.
- 95 proposals have been successfully implemented.
- Only one CP (R0015) was returned by the Authority for revision.
- Three CPs have been formally appealed.
- There have been no instances where the Authority overturned a Change Panel decision.
The Board also noted that, due to process improvements initiated by RECCo’s Operations team and implemented by the Code Manager, the average duration for processing a REC Change Proposal has been significantly reduced compared to the previous year. Changes now typically take 127 days from beginning to end.
RPA Deep-Dive
The Board were provided with an overview of the REC Performance Assurance Framework (PAF), which ensures compliance with REC obligations, mitigates retail market risks, and protects consumer interests. It achieves this through risk-based assurance strategies, transparent operating plans, and tools like the Retail Risk Register and Performance Assurance Reporting Catalogue. Key achievements include targeted risk mitigation, stakeholder engagement improvements, and enhanced market data quality. However, challenges persist, such as party reporting requirements and better outcome-oriented metrics.
A ‘deep dive’ of the REC Performance Assurance (RPA) service provisions was also conducted. The Board noted that while exceeding some KPIs, gaps in areas like theft detection calculations, helpdesk satisfaction, and communication were noted. Recent improvements include streamlined data submission processes, enhanced theft detection schemes, and stakeholder engagement initiatives such as webinars and drop-in sessions.
Despite this progress, unresolved issues like a misaligned KPI framework and supplier complaints suggest there continues to be room for improvement. Future opportunities include refining the Performance Assurance Operating Plan, clarifying RPA core resource needs, and strengthening stakeholder collaboration. RECCo will deliver these with the RPA, its other service providers, and stakeholders.
Consumer Consent Project ‘Deep Dive’
The Board was provided with an update on the Consumer Consent initiative, which aims to empower consumers to share their data securely with organisations for tailored services. Ofgem is finalising its response to the consultation on this initiative, with RECCo as the ‘minded to’ governance and delivery body. RECCo strongly supports Ofgem’s recommendation, aligning with REC objectives to protect consumer data and interests.
If Ofgem confirms its position, deliverables will include a new REC Schedule defining service obligations for suppliers, RECCo, and data providers, updated performance assurance, and technical specifications for interoperability and security. Proposed solutions ensure personal data flows directly between consumers and service providers, with RECCo providing assurance databases and monitoring services.
Financial Performance
RECCo is committed to easing the financial burden on funding parties wherever possible. Earlier this year, the RECCo Board approved the principle of implementing an in-year reduction in charges for activities where there is a high probability the costs will not be incurred. In October 2024, in response to the recalibration of the MHHS delivery timescale, we reduced our MHHS-specific charges, returning c£1.8m to industry. Our latest forecast indicates a likely full-year underspend, and the Board has approved the return of a further c£2.5m to the industry as a reduction against our charges in January 2025. RECCo will confirm the final value and reasons for this underspend in January 2025.
