Board highlights: April 2026

May 22, 2026

RECCo Board meeting

29 April 2026

This is my second bi-monthly update as RECCo’s Chair, following our latest Board meeting. I’ll continue to share these after each meeting to give REC Parties and wider stakeholders clearer visibility of what we’re discussing and what’s shaping our direction.

These updates are intended to provide a more personal summary of the Board’s focus, not just the decisions we take, but the context behind them and the priorities guiding our work. More detailed RECCo updates and materials continue to be available on the RECCo website for those who would like to explore further.

At our April meeting, the Board focused on the following areas:

Code Manager Licence Governance Progress and Approach

RECCo is currently engaging with Ofgem on the establishment of an interim Stakeholder Advisory Forum (SAF), including an alternative option to appoint an independent Chair and members in time for licence grant.

The SAF is expected to play an important role in providing impartial advice and constructive challenge to RECCo as Code Manager, supporting decision-making across code modifications and other areas defined within the licence. This includes input into the development of annual budgets and delivery plans aligned to Ofgem’s Strategic Direction Statement.

We will keep stakeholders informed of progress, including how the SAF will interact with and complement existing REC governance structures, such as the REC Change Panel.

Review of RECCo’s Performance Assurance Strategy

As part of the Evolution of the Code Manager Services Project, RECCo will be implementing a new performance assurance delivery model from 01 September. The new model builds on the success of last 5 years with an increased focus on measurable outcomes to improve the retail market and consumers’ experience. To support this, RECCo has developed an overarching Performance Assurance Strategy comprising the following principles which are designed to ensure that REC Performance Assurance will be:

Outcome-focused;

Risk-based;

Evidence-based;

Proportionate;

Technology-enabled;

Consistent and fair;

Transparent and Accountable; and

Future-ready.

The Board has approved the Performance Assurance Strategy, and we look forward to seeing the benefits of the new approach in the coming months.

RECCo’s Expected Outturn for 2025–26 and Audit Process

In the coming months, RECCo will undertake its annual statutory financial audit, which will confirm the costs incurred in delivering industry-critical services and key programmes over the past year.

Our current expected outturn indicates an underspend of approximately £9m. Of this, £5.5m was returned to REC Parties in January, with the remaining balance expected to be returned in October following audit completion.

In the context of ongoing cost pressures across the energy sector, the Board has maintained a strong focus on financial discipline. This has included challenging the organisation to secure efficiencies across service delivery and programme activity. Key drivers of the underspend include enhanced scrutiny of spend, a shift from contractor to employee delivery models, changes to service provider arrangements, prioritisation of change activity, and some timing differences.

The Board expects this focus on efficiency and value for money to continue into 2026.

RECCo’s Referral of DCC’s Procurement Costs to Ofgem

As part of the 2026 Budget, RECCo included a £5.6m allowance for the procurement of contracts supporting the Central Switching Service.

However, RECCo identified that extending the existing contracts, rather than undertaking a full procurement, could better serve industry and consumers by reducing both cost and delivery risk, particularly within an already complex and congested change landscape.

RECCo therefore challenged the Data Communications Company (DCC) to develop a robust business case for contract extension. Following this, DCC provided supporting evidence, and RECCo has subsequently confirmed to both DCC and Ofgem its support for extending the four contracts to 2029.

This position is consistent with recent industry engagement, which has indicated a strong preference for extension.

Supporting the delivery of the Energy Digitalisation Framework 

The Board reviewed and welcomes RECCo’s position in the Energy Digitalisation Framework policy which was recently published by Ofgem and Government, recognising both the strategic importance of the policy and RECCo’s central role within it.

RECCo will mobilise delivery of the Consumer Data Domain and Consumer Consent Infrastructure roles, alongside continued engagement with DESNZ, Ofgem and industry to shape detailed implementation.

The board will continue to monitor developments as the Digitalisation Coordinator role evolves as we remain well positioned to support delivery in line with policy direction and the needs of the retail energy market, stakeholders and consumers.