The Board noted that the Central Switching Service (‘CSS’) is now under full REC governance. A ‘Work-Off Plan’ was agreed with the DCC to ensure that all outstanding matters were completed in a timely manner. The DCC is required to report delivery against the requirements to the REC Performance Assurance Board (PAB). RECCo and the Code Manager continue to work closely with the DCC operational, governance and finance teams to ensure their REC obligations are understood and delivered against.
The Board was appraised of the outcome of the Theft Estimation Methodology (TEM). Capgemini has delivered the draft TEM Report, which is currently going through final review ahead of publication alongside the Forward Work Plan in mid-January 2023. The key findings of the report were trialled at an industry-wide theft workshop in November and presented at a dedicated webinar in December. The results of the TEM report will, together with the wider stakeholder feedback from the November Theft Workshop, inform our Theft Reduction Strategy.
The Board noted the successful completion of the Post-Implementation Plan (‘PIP’). When the REC Code Manager service went live on 01 September 2021 there were a small number of outstanding deliverables and defects to be resolved; these included operational processes, documentation, and system issues. RECCo has been working closely with the Code Manager Service Providers to ensure that all PIP requirements were completed to the required quality standards. We are pleased to report that the Code Manager has implemented, at no additional cost, solutions that will support Parties in engaging with the service and understanding their obligations under the Code.
The Board noted the activation and administration of Market Stabilisation Charge (MSC). The MSC is a charge levied on Suppliers who gain customers through switching and to partly compensate losing Suppliers for the energy they had already procured for those lost customers. The scheme was triggered for gas switches for the first time in November 2022 and electricity in December 2022. As a result, RECCo, supported by the Code Manager and industry data providers, has successfully implemented the operational administration of the scheme.
The Board reviewed RECCo’s role in the delivery of the Market-wide Half Hourly Settlement (MHHS) Programme. This programme will require significant updates to the REC and REC Systems to reflect the new obligations; RECCo has established an expert team to ensure we meet our key deliverables in accordance with the wider MHHS Programme timetable. All RECCo’s current milestones remain on track. The Detailed Impact Assessment for Electricity Enquiry Service (EES) is in progress, due to complete in January 2023, and RECCo are in discussion with the MHHS Programme and Elexon to agree roles and responsibilities for party qualification.
Cost Savings in Green Deal Administration
RECCo has delivered substantial costs savings associated with the Green Deal. The Board is delighted to announce that from April 2023 the cost of delivering the Green Deal Central Charging Database Service (‘GDCC’) will reduce significantly, by c.£600k over the period to July 2025. This cost reduction was achieved through working closely with our service provider C&C Group, who adopted a forward thinking and strategic approach to these discussions. The migration of the standalone GDCC into the Electricity Enquiry Service is the first step in RECCo’s objective of consolidation of its energy enquiry services.
RECCo Financial Management
The Board was appraised of the continued prudent and efficient management of financial resources. RECCo are expected to end the current financial year with an underspend against budget and the value of this, once confirmed as part of our statutory audit, will be returned to funding Parties. In Q4 2023 we delivered the financial aspects of the Theft Detection Incentive Scheme and invoiced those Suppliers required to pay into the scheme. Through the delivery of strong credit control processes, RECCo was able to collect >99% of the monies due into the scheme within 4 weeks and pay those out to the Suppliers within a further 2 weeks
‘Golden Nuggets’ Project
The Board was appraised of the successful completion of an agile project. It identified focus areas for RECCo from an external point of view with 23 ‘must-have’, 16 ‘should-have’, 20 ‘could-have’, 8 ‘won’t have’, high-level requirements or ‘epics’. These ‘epics’ confirm and support RECCo’s operational and strategic direction and are enhanced by the creation of a prioritisation approach to identify the reach and impact on consumers and climate change. The successful completion of this project provides a basis for repetition in future projects.
RECCo Procurement Strategy
The Board received the RECCo Procurement Strategy. RECCo is funded by industry, and it has an obligation to manage and invest those funds prudently to deliver the REC objectives and importantly, achieve positive outcomes for the consumer and wider community. The key objectives of the strategy are for RECCo to continue to act as the intelligent customer on behalf of industry; to procure services that are value for money, scalable and adaptable. Also important is that RECCo procure services using data driven decisions and during the service life deliver operational and cost efficiencies.