Our
Programmes

Our
Programmes

Our work programmes focus on improving our services and driving positive change in the retail energy market. Currently, we’re working on programmes to reduce energy theft, improve energy switching, move to a more intelligent energy system, and simplify the metering codes of practice. You can read more about each of our programmes, and find out how to get involved, below.

01

Energy Theft Reduction Strategy

RECCo's Role in Energy Theft Reduction

Energy theft is the unauthorised or illegal use of electricity or gas, including the interference and tampering with meters.

It’s hazardous to interfere with the energy supply – every year, it costs lives, causes injury, and destroys property. Damaging a gas supply can cause gas to leak into enclosed spaces, leading to explosions. Changing the wiring of a meter can make appliances live to the touch, risking shocks or burns.
As well as causing severe harm, energy theft increases the cost of gas and electricity for consumers.

We are working with the energy industry on an Energy Theft Reduction Strategy – to keep people safe and costs down.

Energy Theft Reduction

Current Theft Arrangements

Energy Suppliers and Network Parties (Distribution Network Operators and Gas Transporters) have a license condition to detect, prevent and investigate energy theft.

Obligations under Retail Energy Code (Schedules 7 and 8)

RECCo’s role is to assist Energy Suppliers and Network Parties with fulfilling their obligations.

Current Tools and Services

Energy Theft Reduction Programme Scope

Workstream

Industry Collaboration
Awareness
Data
Incentive Schemes
Enforcement

02

Data & Digitalisation

In financial year 2022/23 we stated that we would develop a digitalisation and data strategy to deliver data and service improvements.  We are well on the way to delivering that aim with an increase in agile delivery; review of our data sources; identification of user experience improvements and facilitation across industry of consumer consent.

Open Data

In 2022 we started a review and cataloguing of our data sources to enable the secure opening of data and fair application of data protection regulations. This will enable us to safely broaden the access to data under the REC. This work continues in 2023 and beyond as new data items, sources and the associated uses increase.

We anticipate making changes to the REC, and the associated services, to improve access by utilising the standard REC change processes.

Consumer Consent

To enable many of the future market innovations, deliver net zero and reduce energy cost to the consumer the Energy Digitalisation Taskforce identified the need for a consumer consent portal. RECCo is well positioned to facilitate this and identify the best way forward for industry to deliver this and create a positive outcome for the consumer.

Data Quality

The REC Performance Assurance Framework has a key role in maintaining standards of data quality and is well placed to drive and maintain improved data standards.  Where data quality is poor and is having a detriment to industry operation, RECCo will play a facilitating role to improve the quality. 

Digitalisation of Services

We seek to embrace a digital first approach where sensible and we continue to make incremental improvements to the REC Portal and EMAR, as well as other services such as CSS and the enquiry services.

API Gateway & Micro Services Architecture

As technology advances, the dependence on data increases; the pace of change increases and uncertainty grows. RECCo is planning to adopt an API gateway and microservices architecture, where sensible and economic, for its services. This will provide parties with reduced complexity in access services; reduced effort in changes and increased flexibility to RECCo to procure and deliver existing and new services when they arise.

Secure Smart Energy Systems (SSES)

We understand and support the drive for Net Zero and acknowledge the estimated £10 billion in savings which demand-side response services (DSR) and energy smart appliances (ESA’s) may deliver and believe that consumer engagement and consent will be critical to the adoption of these technologies. As a result RECCo and the REC will have a key role to play in the facilitation of SSES.

03

Market-wide Half-hourly Settlement (MHHS)

What is the Market-wide half-hourly settlement?

Energy Settlement reconciles the difference between the energy purchased by suppliers and the amount sold to customers. Currently, whilst generators and suppliers trade electricity in the wholesale market in half-hourly periods, most customers are ‘settled’ on a non-half-hourly basis using estimates. These estimates are based on the average consumer’s usage, and the meter reads they have submitted.

As smart meters can record the amount of energy consumed within every half hour of the day, there is an opportunity to make the settlement process more accurate.  MHHS will enable the industry to move to a more intelligent, flexible energy system. This will act as an enabler for innovative products, services and tariffs and more efficient management of the electricity networks. Ofgem’s analysis predicts that MHHS will bring net benefits for consumers between £1.6bn and £4.5bn over 2021-2045.

RECCo's role

RECCo is responsible for ensuring that MHHS requirements that impact the Retail Energy Code and REC Services are delivered and that the solutions have positive outcomes for consumers.

Objectives and Scope

During this project we will:

Engage with MHHS programme governance to support design, build, testing and implementation

Update the Retail Energy Code to reflect new MHHS systems and processes

Make changes to REC Services to support the new MHHS Target Operating Model and end-to-end design

Update the REC Operational Services and Operating Model to reflect the new market arrangements

Engage with REC Stakeholders

Project Workstreams

01

Regulatory

This workstream will deliver the required changes to the REC baseline by updating the REC drafting and consulting with stakeholders and MHHS governance.  We expect multiple versions of the REC drafting to be produced.

02

Design & Build

This workstream will deliver the required changes to REC Services. This includes the Central Switching Service (CSS), Electricity Enquiry Service (EES), Electricity Retail Data Service (ERDS) and Secure Data Exchange Service (SDES).

03

Testing

This workstream will ensure that required REC Services participate in appropriate MHHS test phases, mobilising and operating the necessary environments, processes, and resources to support the successful delivery of these programme milestones.

04

Operational Readiness

This workstream will make sure that the correct operational processes are in place. This includes supporting the update to the REC baseline and the RECCo Operating Model. Areas to update include:

Find out more

We will keep you up to date as the project progresses, and provide a monthly update via our newsletter.

If you have any comments or questions about our MHHS Programme, you can contact the team at mhhs@retailenergycode.co.uk

04

Prepayment Levelisation

What is Pre-Payment Meter Levelisation?

Historically, British customers on prepayment meters (PPM) have paid more for their energy than those on direct debit (DD). On the 15th of March 2023, the Chancellor announced that the Energy Price Guarantee (EPG) would be used to align costs for PPM and DD customers. Initially, these costs were aligned by giving PPM customers a unit rate discount. In October 2023, Ofgem selected RECCo to develop the industry processes and as the reconciliation operator for the delivery of the non-volumetric payment levelisation program. 

Why is reconciliation
needed?

This programme will levelise tariffs by requiring energy suppliers to charge DD customers more whilst discounting PPM tariffs. However, a reconciliation method needs to be introduced as the payment method split is not the same for each Supplier’s portfolio. This is so Suppliers with higher-than-average PPM consumers can be credited, whilst those with fewer-than-average can be debited. 

What is RECCo’s
role?

We have been tasked with developing industry processes under the Retail Energy Code (REC) and designing, building, testing, and delivering a functional system that will facilitate supplier payments to allow for non-volumetric levelisation. This system is due to go live on the 1st of April, 2024. The change to the REC will be given effect through Change Proposal R0147

What do Suppliers need to do?

All domestic Suppliers are required to take a snapshot of their data on the 1st day of each Calendar Month and send it to us by the 15th Calendar day of the month. We will calculate positions and send an invoice 15 Working Days (WD) after the data submission date. Suppliers are expected to pay invoices within 10 WDs of receipt of acceptance. All funds are distributed equitably, and Payments to Suppliers will be sent within 10WDs of payment deadline.

The Invoice Schedule is detailed below, containing key dates for upcoming file submission and invoicing.

Templates for Supplier data submission are also provided below. Please note, the file formatting is important for file validation, as such, please ensure the following:

  • Each region must be populated, even if there is no data i.e. populate with zeros and with relevant date format
  • file name format for electricity: MPID_YYYYMM.cs
  • file name format for gas: SSC_YYYYMM.csv
  • files using column headers or regions different to the template will not be accepted

Levelisation Payment Details

This document details the total value of invoices sent to Suppliers and the proportion of that amount collected from Suppliers. For Suppliers due to receive payment from the scheme, it includes the proportion of their calculated credit that RECCo has paid out for the current & previous invoice periods.

Payment Details

Data Submission Templates

Market Stabilisation Charge (MSC)

What is the Market Stabilisation Charge?

From 15 December 2021 to 17 January 2022, Ofgem consulted on a range of potential temporary measures to enable domestic suppliers to better manage risks created by current wholesale market volatility, which could lead to higher costs for consumers in the event of further significant supplier exits from the market.

On 16th February 2022, Ofgem published a decision document to introduce two measures which they believe are in consumers’ interests. This includes a requirement for suppliers to pay a Market Stabilisation Charge (MSC) when acquiring new customers.

The MSC is a charge which is to be levied on suppliers who gain customers through switching. The MSC is a £ per kWh charge which Ofgem will determine on a weekly basis. When a customer switches to a new supplier, the MSC in effect at the time of the switch is multiplied by the customer’s annual consumption and the gaining supplier pays that amount into the scheme. The collected payments will be distributed amongst suppliers who lose customers and is intended to compensate a proportion of the economic loss and insulate the market from the destabilising effects of a significant change in the price of wholesale energy.

Invoice Schedule

These documents contain tables showing the invoice and payment scheduling for each 4-Week MSC Cycle, detailing payment deadlines for Suppliers and RECCo.  

Schedule for Invoice Period 15/11/22

Schedule for Invoice Period 24/05/23

Schedule for Invoice Period 05/12/2023

Schedule for Invoice Period 17/05/2024

MSC Payment Details

The document below details the total value of invoices sent to Suppliers and the proportion of that amount collected from Suppliers. For Suppliers due to receive payment from the scheme, it includes the proportion of their calculated credit that RECCo has paid out for the current & previous invoice periods.

MSC Payment Details

Scroll to Top