Warning: Undefined array key "HTTP_REFERER" in /var/www/vhosts/tomorrowuk.net/httpdocs/wp-content/plugins/cornwall-insight/inc/cookie.php on line 52

Warning: Undefined variable $field in /var/www/vhosts/tomorrowuk.net/httpdocs/wp-content/plugins/cornwall-insight/inc/training.php on line 442

Warning: Undefined variable $field in /var/www/vhosts/tomorrowuk.net/httpdocs/wp-content/plugins/cornwall-insight/inc/teams.php on line 113

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /var/www/vhosts/tomorrowuk.net/httpdocs/wp-includes/functions.php on line 5835
Ofgem raises modifications ahead of RCC and new switching arrangements

Ofgem raises modifications ahead of RCC and new switching arrangements

The latest edition of our Faster Switching Service Report due to be issued this week includes the latest developments in Ofgem’s Switching Programme and the associated Retail Energy Code (REC).

Launched in November 2019, the Retail Code Consolidation (RCC) Significant Code Review (SCR) set out Ofgem’s intention to amalgamate the Master Registration Agreement (MRA), Supply Point Administration Agreement (SPAA), Smart Metering Installation Code of Practice (SMICoP) and Green Deal Arrangements Agreement (GDAA) into one new industry code, the REC.

Ofgem has since raised a suite of code modifications to facilitate the closedown of the MRA and the SPAA for electricity and gas respectively, with some requirements from the remaining codes to move to the REC. As such, the modifications listed in Figure 1 will ensure that the relevant codes are fit for purpose for RCC on 1 September 2021 and are able to facilitate cross-code change management.

The proposals would introduce a vehicle to give effect to the Cross Code Steering Group (CCSG) arrangements. The new steering group will support the development of proposals that impact on multiple codes and will be made up of one or more representatives from each affected code. Where cross-code proposals arise, the group would decide the Lead Code for the change, and this Code’s modification would be designated as the lead change or principal change. The proposal would then be progressed under the relevant code processes with the Lead Code administrator coordinating with other affected codes. The code administrators of the other codes would be able to raise consequential or subsidiary changes where the need for these has been identified by the CCSG. The REC Code Manager would also be able to raise consequential changes to other codes if needed. These proposals would need to follow the same timelines and be approved at the same time as the Lead Code proposal.

The new cross-code arrangements will add a new layer of governance to the current structure and represents a step towards the Code Manager approaches that will see administrators taking a more active role in raising and progressing modifications.

Ofgem expects to make decisions on all the RCC code modifications in July. If approved, the relevant industry Panels would then need to implement the changes ahead of RCC on 1 September 2021.

Beyond RCC

The regulator’s statutory consultation on proposed licence changes for the Switching Programme (SP) is due in December 2021, with the year ahead seeing SP and REC Company (RECCo) activity ramp up in the run up to go-live of the new switching arrangements in summer 2022.

Of note is RECCo’s establishment of a new forum to facilitate structured engagement between price comparison websites and suppliers to facilitate structured engagement between these parties. The forum continues the work of the Consumer Journey Forum set up in February 2020 to consider the impact of the introduction of faster and more reliable switching on the various journeys that consumers might take through the end-to-end switching process, and to identify any aspects of the journey which may cause issues and/or prevent them from having a positive engagement. The forum is expected to conclude its work by mid-October 2021.

We provide regular coverage of these issues and others affecting the Switching Programme in our quarterly Faster Switching Service. For more information contact l.heyworth@cornwall-insight.com. We also recently released a complementary podcast, ‘REC-ing your brain over faster switching?’, listen to our experts here.

Related thinking

Regulation and policy

How will consumers take to Market-wide Half Hourly Settlement?

Ofgem published its decision to implement the move to Market-wide Half Hourly Settlement (MHHS) on 20 April. This confirms plans to move to new settlement arrangements over a four and a half year time period, with the Elexon-led Design Working Group’s Target Operating Model to be used as the blueprint. Meters...

Regulation and policy

Calm before the storm? 2021 energy supplier compliance developments

The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

Regulation and policy

Electricity transmission charging reform – overtaken by changing priorities?

Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...

Commercial and market outlook

April showers bring DUoS for every half hour

Almost two years ago, Ofgem approved DCP268 DUoS Charging Using HH Settlement Data, which will move existing non-Half Hourly (NHH) settled demand customers onto time-based Half Hourly (HH) Distribution Use of System (DUoS) unit rate charges. With the modification to be implemented in the DCUSA on 1 April, we revisit...

Announcement

What’s changed? Celebrating 750 issues of Energy spectrum

Today marks 750 editions of Energy Spectrum, our flagship publication which covers news and insight on the energy market. To celebrate, we present six Energy Perspectives from past publications, going as far back as 2005, which we believe still have relevance today.  Issue 4 – ‘Smart metering’ - Energy policy’s missing...

Low carbon generation

New transmission charge forecast will help generators managing cost uncertainty and volatility

Transmission network use of system (TNUoS) charges represent a significant proportion of operating costs for many renewables generators, often exceeding 50% of annual running costs. For some, as recently highlighted by SSE in a recent report and to Members of the Scottish Parliament, they could present a barrier to investment in generation...

Business supply and services

Energy suppliers must be ready to demonstrate compliance with new principles

From 22 January, energy suppliers were required to follow new principles resulting from Ofgem’s Supplier Licensing Review (SLR), which initially kicked off nearly three years ago. Such was the breadth of the SLR, changes were introduced in two rounds, with the first round of changes bringing the introduction of tougher...

Regulation and policy

Ofgem “hands-on” in RIIO-2 as net zero route unfolds

During the next round of the RIIO price controls, Ofgem can be expected to take a more hands-on approach to outputs the networks are required to provide and the allowed revenues they can charge their users or consumers. This will have impacts for network development including the enabling of electric...

This site is registered on wpml.org as a development site.