Retail Energy Code Company (RECCo) Budget Consultation

Ofgem has released a consultation on the REC 19-20 budget consultation. REC V1 is expected to come into effect 1st February 2019. Ofgem will issue accession forms to relevant parties at that time, which are to be returned by 28th February 2019 or as soon as possible after. 

The REC Company will serve as the corporate vehicle for ensuring the proper, effective and efficient implementation and ongoing management of the REC.  During the implementation of the Switching Programme, the RECCo costs will fall into two main categories: 

•            Administrative arrangements to support the establishment and operation of the REC and of RECCo itself; and 

•            Services to support the delivery of the Switching Programme.

Once the new switching arrangements are implemented and version 2.0 of the REC takes effect, which is due to be mid-2021, the RECCo will also be responsible for the payment of other REC governed services, including those of the CSS. The RECCo will recover such costs from funding parties in accordance with the relevant charging methodology. 

As the REC is not yet in effect and in the absence of a REC Manager, Ofgem is consulting on the 2019/20 budget and have forecasted costs for the following two years, although these are expected to be subject to an annual consultation carried out in accordance with the REC, once designated. 

Ofgem will summarise responses to this consultation and submit them as part of a budget paper for approval at the inaugural meeting of the RECCo board, which is expected to be in late February 2019.

The closing date for responses to this budget consultation is 15th February 2019.  Any comments should be submitted by email to: switchingprogramme@ofgem.gov.uk.