Information for REC Parties

The Retail Energy Code went live in February 2019.

The purpose of the REC is to bring together the code requirements relating to retail energy activities and to enable the operation of faster and more reliable arrangements for consumers to switch their energy suppliers.

REC v1.0 provides strengthened governance to support the effective and timely implementation of new switching arrangements, which will be delivered via the new Central Switching Service in mid-2021.  Specifically, it codifies the transitional requirements placed upon market participants.

You can find REC v1.0 here.

Future versions will consolidate the SPAA and MRA into the REC and set out the enduring switching arrangements.

You can view Ofgem’s consultation on the proposed enduring REC provisions here.

Obligations

All gas and electricity suppliers, distribution network operators, gas transporters, and the Data Communications Company are required by their Licences to accede to the REC.

If your company holds one of these licences, and you are active in the energy market, then your company will need to accede to and comply with the Retail Energy Code v1.0.

If you are not sure whether your company has acceded to the Retail Energy Code, or whether you are required to, please contact us at info@retailenergycode.co.uk 

REC v1.0 sets out the obligations for parties to engage with the delivery of the Ofgem Switching Programme. Parties are, at a high level, required to:

  • engage with requests from Switching Programme management;
  • undertake preparatory activities such as data cleansing and migration; and
  • report on progress in advance of and during systems testing.

These obligations are set out in more detail in the Transition Schedule of the Code. Their purpose is to facilitate the efficient implementation of the Switching Programme and allow an informed decision to be taken by Ofgem prior to the go-live of the new Central Switching System. You can find out more about the Switching Programme here <>.

Costs

The Retail Energy Code Company (RECCo) is the corporate vehicle for ensuring the proper, effective, and efficient implementation and ongoing management of the Retail Energy Code.

RECCo is responsible for setting the annual budget and recovering costs. These costs are funded by energy suppliers on a market share basis, determined by the supplier’s share of the total supply points in the market. Parties will be invoiced on a quarterly basis and shall be addressed to the REC registered Contract Manager.

The RECCo Board has developed the following policy for managing any bad debts under the REC –  Bad Debt Policy Oct ’19 (PDF)

For more information, please contact finance@retailenergycode.co.uk

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