Code Reform & Code Manager Licence application
RECCo submitted its Code Manager Licence application on 10 June 2025. Ofgem is expected to award the licence in Q1 2026–27 via a non-competitive process for the Retail Energy Code (REC) and the Balancing & Settlement Code (BSC).
Strategic planning is aligned with Ofgem’s forthcoming Strategic Direction Statement (SDS), anticipated in Summer 2025. This will be further explored at the RECCo Board Strategy Day in September 2025.
RECCo is also preparing a consultation response to the DESNZ draft licence, due by the end of June 2025.
Annual REC Performance Report & Performance Assurance Board recommendations
The Board received the Performance Assurance Board annual report, which summarised assurance outcomes across key areas, including:
- Switching
- Metering
- Theft detection
- Service provider performance
- Qualification
- Data security
The Board approved five key recommendations:
- Launch a project to improve switching objection processes—to provide greater clarity for consumers earlier in their journey
- Focus strategically on the digitalisation of meter data—to support REC Changes and industry transformation programmes
- Use consumer data (I0189) to inform the Forward Work Plan (FWP) and assess the impact of initiatives
- Develop a mechanism to address complex consumer issues outside the formal FWP structure
- Leverage the Digital Services rollout to enhance assurance and market participant experience
Consumer Consent & Tariff Interoperability role in supporting energy market transition
As the market transitions to a more flexible, data-driven future, the following enablers are essential:
- Trusted consumer consent mechanisms
- Effective tariff interoperability
- A robust flexibility market asset register
These will unlock innovation, empower consumer choice, and improve market participation.
The Board discussed the collaborative roles of RECCo, NESO, and Elexon in ensuring readiness for a data-led energy system. It also examined the interaction between Ofgem, DESNZ, and RECCo—with Ofgem and DESNZ setting policy and RECCo delivering the service.
Financial update & expected outturn 2024-25
Audit fieldwork is nearing completion, and the final report will be shared with the Finance & Audit Committee in July 2025. Financial Statements 2024–25 will be approved at the next Board meeting in August 2025 and published shortly thereafter.
RECCo anticipates a full-year cost of approximately £42 million, against a budget of £53 million. In light of this underspend:
- £4 million has already been returned to REC Parties through price reductions
- A further £7 million will be returned later in 2025 via reduced REC Charges
A more detailed breakdown of the underspend drivers will be shared in the July 2025 Inside RECCo newsletter.
RECCo’s Annual Report 2024–25
The Board approved RECCo’s Annual Report 2024–25, which comprehensively reviews activities over the preceding financial year. The report includes statements from Chair Hannah Nixon and CEO Sid Cox, highlighting:
- Launch of the new Strategy 2025–30
- Key achievements
- Recent policy decisions—including Ofgem’s confirmation of RECCo as the Delivery Body for the Consumer Consent Service
It also offers a detailed summary of FWP commitments, with 21 completed and six continuing into 2025, alongside assessments of strategic execution and budget performance.
A detailed appendix in the report provides further insight into core service areas, including:
- Code Manager performance
- REC Change Process
- REC Performance Assurance
- REC Service developments and planned improvements
Notable achievements include:
- On-time delivery of all Market-wide Half-Hourly Settlement REC milestones
- Submission of the Energy Theft Unit proposal
- Preparations for a unified Digital Services platform set to launch in Autumn 2026
The Annual Report 2024-25 will be published shortly and made available to all REC Parties.
For more information, please contact: communications@retailenergycode.co.uk
