On 16th February 2022, Ofgem published a decision document to introduce two measures that they believe are in consumers’ interests. This includes a requirement for suppliers to pay a Market Stabilisation Charge (MSC) when acquiring new customers, as a measure to address the risks to consumers in the short-term from ongoing wholesale market volatility.
The obligation for RECCo to administer Ofgem’s Market Stabilisation Charge (MSC), was implemented under the Retail Energy Code (REC) on 14 April 2022 (via REC Change Proposal R0034).
Since then RECCo has been working to develop the supporting governance arrangements, technical solutions and end-to-end business processes to administer the MSC under the REC, and we are on target for the planned delivery at the end of June 2022.
Further to the implementation of R0034, RECCo was responsible for working with the industry to develop REC Change Proposal R0035, which sets out how the administration of the charge will operate. We are pleased to report that on 27th June, the Authority approved R0035 for implementation on 30th June 2022.