Publications
Here you can download all of our latest publications including live RECCo consultations, our responses to industry consultations, RECCo case studies, or thought leadership papers. If you can’t find the document you are looking for please email the team at info@retailenergycode.co.uk
Response to the Ofgem DCC Switching Incentive Regime Statutory Consultation
Consultation response
RECCo supports the introduction of a Switching Incentive Regime into the regulatory framework for Switching. To read our response in full, open the letter linked below.
Response to the BEIS Consultation on Delivering a Smart and Secure Electricity System
Consultation response
RECCo responded to the BEIS Consultation on Delivering a Smart and Secure Electricity System. We welcome this opening consultation from BEIS and support its aim of developing arrangements to grow and evolve the markets for demand-side response services (DSR) and energy smart appliances (ESA).To read our response in full, open the letter linked below.
Response to the Consultation on the Future Ownership of Elexon
Consultation response
RECCo responded to the Consultation on the Future Ownership of Elexon, stating that RECCo
itself is a company limited by shares, owned by the Parties to the REC. RECCo considers that this
model has worked well and could suitably be adopted by the Elexon, in its role as the Balancing and Settlement Code Company. RECCo also provided detailed responses to each of the consultation questions. These responses can be read in the appendix of the letter linked below.
Response to DCC Service Provider Performance Charge Consultation
Consultation response
RECCo issued a consultation in April 2022 on Data Communications Company (DCC) Service Provider Performance Charges. This was issued due to a proposal from Ofgem that some of the DCC’s Switching Service Level Agreements (SLAs) under the REC, could be subject to assurance through Ofgem’s regulated price control rather than the REC Performance Assurance Framework (PAF). We received five non-confidential responses to the consultation from two Energy Suppliers, two Distribution Network Operators and the DCC. We would like to thank stakeholders for their responses to this consultation. We have considered these comments carefully, in collaboration with Ofgem, in order to agree on the next steps. RECCo’s response to these comments can be found below.
Response to joint BEIS, Ofgem and Innovate UK report: Energy Digitalisation Taskforce
Consultation response
RECCo responded to the Energy Digitalisation Taskforce report by BEIS, Ofgem and Innovate UK on 26th August 2022. In our letter we highlight our commitment to supporting and building upon the report recommendations to ensure the sector can effectively support the energy market transition in which digitalisation will play a key part.
Response to Ofgem’s Open letter: Review of how the costs of supplier failure are recovered
Consultation response
RECCo responded to Ofgem’s open letter ‘Review of how the costs of supplier failure are recovered’, where we agreed that as the Standing Charge was intended to recover the fixed costs of providing infrastructure to consumers, it is not the ideal mechanism to recover the ad hoc costs arising from market failures.
We also noted that the flat charge to consumers which is recovered irrespective of their levels of consumption means that it has a regressive effect, with low consumption, and often low-income consumers paying a disproportionately high percentage of their energy bills towards those costs. We considered that in the absence of a genuine social tariff, or further support being offered through general taxation, a more fundamental review of standing charges could go some way to ensuring fairer charging arrangements for consumers.
Consultation on DCC Service Provider Performance Charges
RECCo consultation – Status: closed
RECCo have issued a consultation on DCC Service Provider Performance Charges. This follows a proposal from Ofgem that some of the DCC’s Switching Service Level Agreements (SLAs) under the REC, could be subject to assurance through Ofgem’s regulated price control rather than the REC Performance Assurance Framework (PAF).
RECCo response to Citizens Advice – Draft Consumer Work Plan 2022/23
Consultation response
In January, the Citizens Advice draft Work Plan was published for consultation and we were delighted to see the number of initiatives across the Citizens Advice’s four work streams that focus not only on the current energy crisis, but also include ensuring more robust provisions for all future consumers. In our response, we observe many synergies and opportunities to collaborate with Citizens Advice in meeting those ambitions.
RECCo response to Ofgem’s Forward Work Programme
Consultation response
In January, Ofgem’s Forward Work Programme was published for consultation. While it is extensive and the areas highlighted are very much needed, it is unclear how Ofgem plan to prioritise and ensure a joined-up approach across all the activities. RECCo also notes the opportunity for Ofgem to consider encouraging investment and innovation by taking a flexible approach, with non-mass-market, de-centralised solutions tailored to resolve holistic challenges.
RECCo response to Ofgem’s statutory consultation to modify licence conditions related to the Switching Programme
Consultation response
RECCo are pleased to be part of Ofgem’s faster, more reliable Switching Programme. This consultation highlights additional roles for the REC and RECCo, including further measures to be part of the performance assurance framework. We address these in our response.
Scope for the Market-wide Half Hourly Settlement reference architecture to operate under the Retail Energy Code
Consultation response
RECCo’s response to Ofgem’s request to consider the case for the Event Driven Architecture (EDA) being developed under the Market-wide Half Hourly Settlement (MHHS) Programme to be governed under the Retail Energy Code (REC) as a REC Service.
RECCo response to Ofgem’s consultations on interventions to address risks to consumers from market volatility
Consultation response
RECCo responds to Ofgems suite of consultations on retail energy market resilience and reporting. We set out a number of issues on the potential adaptation of the price cap methodology and concerns that some options are detrimental to consumers
RECCo response to BEIS low carbon heat pump consultations
Consultation response
As part of the Heat and Building Strategy, BEIS published a suite of consultations focused on off gas grid transition to low carbon heating. RECCo is supportive of the transition to low-carbon heating alternatives and agrees that decarbonisation is central to the challenge of achieving net zero ambitions.
RECCo response to DCC Price Control consultation
Consultation response
Ofgem also published its consultation on DCC price control for the regulatory year 2020/21. RECCo will, in due course, assume the responsibility for overseeing and funding the DCC in its role as Central Switching Service provider. Our response primarily focussed on the aspects of the consultation relating to the Switching Programme and the transition from programme to operational governance, and can be found here.
BEIS Opt-in and testing Opt-out switching – RECCo response
Consultation response
Since these proposals were published in July, the energy markets have seen drastic and sustained increases in wholesale prices. In light of these events we would recommend that BEIS take a period of time to allow prices to stabilise before revisiting its proposals.
RECCO response to Ofgem Default Tariff Consultations and Open letter
Consultation response
RECCo welcomes the work Ofgem is doing to resolve some of the challenges in the retail energy market. However, there are core assumptions and considerations which should be taken into account, not least the impact on consumers. We set out our concerns in our full response.
Consultation on the Design and Delivery of the Energy Code Reform – RECCo response
Consultation response
RECCo welcome efforts to improve energy code governance, particularly where the governance arrangements are to facilitate the industry’s response to the challenges posed by a transition to net-zero. However, we do not consider that the reform of code management and provision of a clearer strategic direction are necessarily complementary proposals or in any way mutually dependent.
Ofgem Microbusiness Strategy Review: Policy Consultation – RECCo response
Consultation response
We are generally supportive of measures that will improve the operation of the retail energy market and benefit consumers. We also consider it would be within both the scope and capabilities of the REC to govern TPI/broker conduct.
Call for evidence: Review of the regulatory arrangements for the Data Communications Company – RECCo response
Consultation response
We welcome the review and are broadly comfortable that the draft Terms of Reference will address the right areas.