RECCo Strategy and Development
The Board reviewed a draft strategy document, capturing the key outputs from the strategy planning event in September.
The document covers the period 2025-2030, with thematic outcomes rather than specific deliverables; this ensures the strategy remains relevant over time and provides the important context set out in the annual Forward Work Plan (FWP). Both the Strategy and FWP documents will be consulted upon over the coming months.
Potential CRS Transfer to RECCo
The Board heard that RECCo has continued to engage with Ofgem, the DCC, SECCo and industry Parties – via the Switching Stakeholder Advisory Forum – to evidence the case for the potential transfer of the Central Registration Service (CRS).
This includes the delivery of a full information pack and cost-benefit analysis to Ofgem, and the development of a robust Transition Plan and Service Delivery Model. Ofgem has indicated that it will decide on whether to transfer the CRS at the end of October. The REC Board approved a provisional draw-down from the Contingency Budget, as agreed with the Parties, to support the next phase of the project should Ofgem decide to transfer the CRS.
Evolution of RECCo’s Operating Model
The Board received an update on the evolution of RECCo’s Operating Model, following a discussion at the strategy planning event in September.
RECCo is committed to remaining fit-for-purpose and adaptable to meet future market needs. For example, if RECCo is awarded the REC Code Manager licence, we aim to enhance our ability to make design decisions more holistically, ensuring that we are well-equipped to manage evolving industry needs.
To achieve this, the REC Board has confirmed key elements of RECCo’s operating model. We are transitioning from a predominantly “procure and manage” organisation to an “intelligent source” model, with no intention to insource at scale. This approach allows the organisation to retain critical knowledge of processes while mitigating potential risks.
We are focused on ensuring the right balance of capability and capacity to deliver our portfolio of projects and services effectively. This includes maintaining strong engagement, fostering transparency, managing risks, and continuing to operate as a remote-first organisation to attract the talent necessary to achieve our objectives. And, following feedback from the industry, we have decided to move to a single brand over time, in the most cost-efficient manner.
Financial Management
The Board received an update of the financial management of the budget.
RECCo is committed to best practices in financial management and the Board regularly reviews performance against budget and conducts re-forecasts throughout the year. This ensures an accurate view of our financial position and expected full-year outcomes.
The Board reviewed the expected 2024-25 financial outcome and found that there is likely to be an underspend on our Market-Wide Half-Hourly Settlement (MHHS) Project costs. This is due in part to the replanned programme timescale with a proposed delay in the MHHS go-live date from March to August/September 2025. This will impact certain RECCo activities and lead to reduced costs in the current financial year. Recognising that RECCo utilises industry funds and is committed to delivering value for money, the Board agreed to reduce the MHHS charges for the remainder of this financial year.
Stakeholder Engagement Programme
The Board was updated on the organisation’s comprehensive stakeholder engagement programme, highlighting key initiatives and activities planned for the coming months.
It heard that RECCo is conducting roadshows in Manchester and London in October. These roadshows aim to engage with stakeholders, explaining how feedback collected over the past year has been integrated into RECCo’s continuous improvement programme, and ensures our services are aligned with stakeholder needs and priorities. The roadshows will also cover the organisation’s medium-term operational programmes, including updates on Code Reform, the evolution of the Code Manager Service, and the potential transfer of the Central Registration Service (CRS) to RECCo.
RECCo is also actively engaging with stakeholders in the development of its Strategy and Forward Work Plan (FWP). Bilateral meetings are currently underway, with preparations in place for a stakeholder webinar to discuss these developments in November, and next January and February. RECCo will also launch its annual stakeholder satisfaction survey in November, seeking insights into the performance of REC services and identifying areas for focus in the 2025/26 financial year. This will be complemented by the publication of RECCo’s Q2 report, also planned for November, providing a detailed overview of progress against commitments and service partner performance.
