“I am delighted to share the highlights of the key matters discussed at our most recent Board meeting in June. In line with our organisational value of Transparency, we will share these highlights after each Board 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.
Progress towards the Code Manager role and governance evolution
A continued focus for the Board is RECCo’s transition to the licensed Code Manager model, in the context of wider Energy Code Reform.
We reviewed progress on readiness activities and noted that the programme remains on track, with no substantive new risks identified at this stage.
The Board also discussed the practical application of future governance arrangements, including the Design Authority and Stakeholder Advisory Forum. Our role will increasingly centre on strategic oversight and assurance, supported by clear reporting, robust governance frameworks and effective stakeholder engagement as the new model is established.
Electricity Commercial Code (ECC) opportunity
A significant area of discussion was RECCo’s progression in relation to the Electricity Commercial Code Manager licence.
Since our previous meeting, Ofgem has confirmed RECCo as the sole candidate progressing through the licensing assessment phase.
The Board approved the release of funding to support a structured programme of work, including development of a target operating model, transition planning, and stakeholder engagement.
This represents a strategically important opportunity for RECCo. At the same time, the Board is very mindful of stakeholder feedback, particularly the importance of maintaining strong delivery of existing REC services while this work progresses.
Market Stabilisation Charge readiness
We considered RECCo’s readiness to support potential reactivation of the Market Stabilisation Charge.
While Ofgem has not yet decided to activate the scheme, the Board recognised the need to utilise Change Investment alongside delegated authority to enable rapid mobilisation if required.
This approach ensures RECCo can respond at pace if needed, while avoiding unnecessary expenditure ahead of any formal regulatory decision.
Ensuring value for money and consumer outcomes
Financial discipline and value for money remain a key focus for the Board.
This was reflected in our decision to support the proposal to extend the Central Registration Service contracts through to 2029, recognising that this represents a lower-risk and more cost-efficient option compared to re-procurement. RECCo will now deliver on its Budget commitment to reduce charges from July in recognition of not requiring the c£5m budget allowance included for this year. More broadly, the Board continues to balance delivery, investment and affordability, ensuring that decisions support good outcomes for consumers.
Performance Assurance and governance frameworks
The Board approved the overarching Performance Assurance Framework Strategy, strengthening how performance, risk and assurance are managed across the REC.
We also agreed on further work to develop reporting outputs, oversight arrangements and practical examples to support the effective application of governance frameworks as RECCo transitions to the licensed model.
Annual Report and transparency
The Board reviewed and approved the 2025/26 Annual Report for finalisation and publication.
The report provides a transparent view of RECCo’s performance, delivery and progress over the past year, and forms an important part of our accountability to REC Parties and stakeholders.
Operational delivery and programme activity
We received updates on RECCo’s operational and programme activities, including service delivery, digital transformation, policy development, and stakeholder engagement.
The Board noted continued strong delivery across these areas, alongside an increasingly complex and evolving market environment. Maintaining operational resilience while supporting major regulatory and industry change remains a key priority.
Stakeholder engagement
Stakeholder engagement remains central to our approach.
In the context of both Code Reform and the ECC opportunity, the Board emphasised the importance of targeted, proportionate engagement, beginning with REC stakeholders while considering where engagement should expand more broadly.
We will continue to keep stakeholders informed and ensure that engagement remains open and constructive as work progresses.
Looking ahead
Over the coming months, the Board will focus on:
- Progressing readiness for the Code Manager licence
- Delivering the ECC licensing assessment programme
- Maintaining readiness to respond to potential MSC activation
- Further developing governance and assurance frameworks
- Ensuring continued strong delivery across REC services
This remains a pivotal period for RECCo as both the organisation and the wider market continue to evolve.
Your feedback
Hearing directly from stakeholders remains important to me, and to the Board more broadly.
If you would like to share your views or discuss any of the areas covered in this update, I would be very happy to hear from you communications@retailenergycode.co.uk”
Hannah Nixon
Chair, RECCo Board
