RECCo to participate in Ofgem’s Electricity Commercial Code (ECC) Code Manager Licensing Assessment Phase

June 1, 2026

RECCo welcomes Ofgem’s decision to invite it to participate in the licensing assessment phase for the Electricity Commercial Code (ECC) Code Manager role on a non-competitive basis.

Ofgem has confirmed that the process will now move to the next stage with RECCo as the sole candidate for licensing assessment, which will involve the development and rigorous assessment of potential future arrangements for the ECC Code Manager.

Background

Ofgem concluded in August 2024 that the existing electricity commercial codes, Distribution Connection and Use of System Agreement (DCUSA) and Connection and Use of System Code (CUSC), should be consolidated into a single code in Phase 2 of its code governance transition programme. In January this year, Ofgem issued a public invitation for Expressions of Interest (EoI) for prospective Code Manager candidates for the future ECC, to which RECCo submitted a response on 20 March 2026.

The selection process requires candidates to submit an EoI to enter a pre-qualification stage, assessing their eligibility and potential to fulfil the Code Manager role. In this case, the EoI was submitted to retain optionality and support wider code reform objectives by exploring whether Ofgem considered that RECCo’s experience and capabilities as a Code Manager could constructively support future ECC arrangements.

In considering whether to submit an EoI, the RECCo Board recognised that RECCo’s experience supporting the successful consolidation and implementation of the Retail Energy Code (REC) may provide relevant insight and capability to support the delivery of the ECC. These specifically included RECCo’s role in supporting the transition and sunsetting of previous code arrangements, working closely with existing code panels and industry stakeholders, novation and transfer of contracts and services, and its transition towards becoming a licensed Code Manager later this year. RECCo also has relevant experience from collaboration on cross-code working and wider energy market reform objectives.

The licensing assessment phase will require RECCo, working with Ofgem and industry stakeholders, to develop and assess credible plans for potential future operating arrangements, governance considerations, capability requirements and stakeholder impacts for the ECC Code Manager role.

Key Principles

RECCo recognises that maintaining stakeholder confidence, governance transparency, fair funding arrangements and maintaining effective operational delivery across its existing responsibilities will be critical throughout the next phase.

As part of the licensing assessment phase, we will work openly and collaboratively with Ofgem, existing REC stakeholders and new ECC stakeholders to develop and refine a set of core principles that would underpin continued involvement in future ECC arrangements. These include:

Ensuring delivery of the REC and RECCo’s ability to meet its existing code and future licence obligations is not adversely impacted;
Ensuring REC Parties are not disadvantaged through RECCo’s participation in the process;
Ensuring collaborative working in order that CUSC, DCUSA and their stakeholders’ operations are not disrupted, and the ECC transition is seamless;
Ensuring appropriate separation of governance, funding and accountability between REC and any future ECC activities;
Ensuring stakeholder confidence, transparency and effective industry engagement remain central throughout the process; and
Ensuring any future model supports effective, efficient and independent Code governance arrangements.

Next Steps

The licensing assessment phase will run up to September 2026 and focus on developing and assessing the proposed future operating model for the ECC Code Manager, including governance arrangements, funding, capability, and operational delivery considerations, as well as detailed transition planning to enable implementation.

Stakeholder engagement will be a central part of this work. We will shortly communicate our proposed engagement approach with stakeholders, including REC Parties, DCUSA Panel and CUSC Panel members, existing code bodies and wider industry participants, to help inform the development of any future arrangements and ensure stakeholder views are reflected throughout the process. RECCo will seek the support of the Panels and code administrators to ensure that CUSC and DCUSA Parties are included.

As part of progressing into the licensing assessment phase, RECCo intends to raise an urgent REC Change Proposal to ensure appropriate governance arrangements and vires are in place to support participation in the process and continued engagement with Ofgem and stakeholders.

A message from Sid Cox, CEO of RECCo

We remain committed to delivering the REC and its supporting services for the benefit of REC Parties, wider stakeholders and consumers. Our experience delivering the successful transition to the REC has demonstrated the value of collaborative, transparent and stakeholder-focused code governance. Our participation in the ECC assessment process reflects our commitment to support wider energy code reform.
We welcome Ofgem’s decision to continue into the next phase and look forward to working with them, existing and future stakeholders across the energy market, to ensure continuity, confidence and effective delivery of both the REC and the codes which will form the ECC in a manner that is fair and transparent for all parties.
We recognise stakeholders will rightly have questions around governance, funding, operational focus and capability, and engaging openly on those issues as we develop solutions, will be an important part of the next phase.