- Financial Matters
1.1 2021/22 RECC Budget
On 15 February RECCo presented its 2021/22 Budget to REC parties and other interested stakeholders in a webinar following the draft strategy and budget consultation issued in January. The REC sets out the formal Budget Preparation and Approvals Process allowing a Party to appeal one or more cost items to the Authority within 10 working days of the Budget being published. The webinar was well attended by a broad range of industry participants. The closing date for appeals was 22 February 2021 and the RECCo Board is pleased to confirm that no appeals were lodged with the Authority.
1.2 Financial Management
RECCo continues to manage its finances actively and in a prudent manner to ensure that the cashflow burden on funding parties is mitigated while still ensuring it has the resources to deliver its key objectives. The Board considers the full year outturn on a quarterly basis and current forecasts indicate an underspend against the budget for the current year. The value of the underspend, and corresponding rebate, will be determined as part of the financial audit of RECCo and communicated to Parties in Q3.
- RECCo Operational
2.1 REC Development
The Ofgem consultation of version 2.0 of the REC closed 23 February, though some late responses continue to be received. The responses have not yet been published or shared in full with the RECCo team, but indications from Ofgem supported by a draft summary table suggest that the most substantive outstanding issue remains the scope of metering to be transitioned from the BSC to the REC. In the interests of expediency, the RECCo team will liaise with Elexon to further develop the necessary changes in anticipation of Ofgem’s decision being consistent with the model consulted upon position. The Chair confirmed that he had held productive discussions with both the Elexon CEO and Cahir, and that the RECCo CEO would also meet with them shortly after appointment.
Ofgem has indicated that the publication of the v3.0 consultation will slip from 18 March to around the end of March. The number of outstanding design decisions and changes is having an impact on v3.0 drafting, including to documents previously baselined. The Board agreed to a request for additional resource to impact assess the decisions and changes that continue to emerge from switching programme governance.
2.2 Transition Programme
2.2.1 Good progress on transition issues
Good progress is being made on developing the contracts between RECCo and service providers required for 1 September. Over the last month there had been engagement in relation to the ET data reports, Xoserve data reports, Theft Calculator, MOCOPA audits, SMICOP audits as well as EES, SDES and GDCC.
RECCo was progressing work with existing code bodies on the transfer of assets such as IP and logos. Agreement had been reached for the transfer of theft assets needed for 1 April 2021 with SPAA and DCUSA.
RECCo and the REC Code Manager have held meetings with code administrators to discuss the requirements for their support in for example, knowledge transfer, inflight processes, and access to performance data, needed for 1 September 2021. These meeting had been well received and existing code administrators were open to providing this support. Existing codes are also now developing workgroup handover reports which are expected to be received in March/April. These will provide further information to support REC Code Manager mobilisation.
RECCo had engaged with a Subject Matter Expert contractor to support an assessment of what, and how, information held by existing code bodies should be made available after 1 September. This work will take place during March 2021.
2.2.2 Energy Theft Tip Off Service
From 1st April 2021, RECCo will assume responsibility for several theft arrangements currently governed under SPAA and DCUSA, including the provision of an Energy Theft Tip Off Service (ETTOS) to industry. RECCo has worked with Crimestoppers to evolve and update the current contract in place with SPAA and DCUSA. This work has included ensuring the front-end Terms and Conditions are current, complete, and appropriate to this type of service. The service description will fully reflect the enhanced service requirements set out in REC. The ETTOS service is widely considered to work well and provide value for money.
Crimestoppers will continue to receive on-line and telephone tip-off contacts from members of the public, match these using industry data to the relevant supplier, and send reports to the supplier for investigation. The service will continue to be ‘anonymous by design’. Crimestoppers will also engage with gas and electricity networks when it cannot identify the relevant supplier or where there is a safety concern. While the service will be broadly comparable to that currently delivered, it has been updated to reflect:
- Notification of safety issues to the DNO and Gas Emergency Numbers;
- Provision of 1st line support on queries linked to the technical operation of the service;
- New service levels on responding to stakeholder queries;
- Clearly defined processes for using industry data to identify the correct supplier as recipient for tip-off reports; and
- Fit for purpose service management of marketing activities including new requirement for monthly report on the performance of the marketing activities
2.3 Code Manager Mobilisation Programme
The Code Manager Mobilisation Programme continues at pace towards milestone 2 sign off on 9th of April this year. Focus continues to be on the technology builds of the REC Portal and the EMAR as the critical path that will deliver the ‘Digital First’ REC experience. The REC Code Manager Service continues to build the internal business processes and work instructions that will support the live service for the 1st September 2021. Stakeholder engagement continues to ramp up with a representative user group being established with industry parties in mid-March. The group will meet at least monthly to communicate on a wide range of topics and answer industry questions.
This is a challenging and exciting time for the programme and RECCo continues to work closely with the REC Code Manager service towards the Service Live date of the 1st September 2021.
- Consumer programme: PCW Project
- Stakeholder Engagement Plan
The Board has developed its 2021 Stakeholder Engagement Plan to ensure REC Parties and wider stakeholders are kept well informed of progress as we move toward Retail Code Consolidation go-live in September, and beyond. In addition to the RECCo programme, the REC Code Manager has now commenced its own engagement activities to ensure stakeholders are operationally ready for go-live. A plan that summarises both RECCo and Code Manager scheduled engagement activities in available on the RECCo Website.
- RECCo Appointments
The RECCo Board is delighted to announce the appointment of Sid Cox to the role of CEO. Sid is a finance-qualified commercial Director with extensive executive leadership experience in the UK energy market. His last major executive role was as a Board Director at EDF Energy Customers plc where he led the business customers business. There, he led transformational change to deliver value for customers and achieved this by working in close collaboration with customers, service providers, and other key stakeholders. The Board believes Sid has all the attributes needed to lead and develop the organisation in the critical period to REC ‘go-live’ on 1st September this year, and beyond in its enduring form.
The process to appoint two Non-Executive Directors (NEDs) to the Board, in the areas of consumer issues and digitalisation, is almost complete. It is hoped that the NEDs will be in role soon.