Ofgem approves changes to the Retail Energy Code to make Market-Wide Half-Hourly Settlement possible

We are delighted that Ofgem has formally approved REC Change Proposal R0209, a pivotal step towards implementing Market-Wide Half-Hourly Settlement (MHHS) in 2025. This milestone marks the culmination of over two years of extensive work between Code Bodies, the MHHS Programme and industry stakeholders and introduces significant changes to the Retail Energy Code (REC).

At RECCo, we have played a central role in ensuring that the MHHS requirements impacting the REC and its associated services are effectively delivered, focusing on achieving positive consumer outcomes. The code drafting approved in R0209 reflects our engagement during the MHHS design phase in 2022. This includes the approval of the MHHS design baseline on 31st October 2022, subsequent changes to the design through the MHHS change control process, and collaboration with the MHHS Programme, other Code Bodies, and industry stakeholders in the MHHS code drafting workstream. Our aim has been to accurately and transparently translate the design into legal drafting for the REC.

The Change Proposal

The proposal, R0209, includes revisions to 12 existing REC Schedules, the complete replacement of the Metering Operations Schedule, and a new Schedule for MHHS migration. Changes were also proposed to the Electricity Enquiry Service definition, the Electricity Retail Data Service definition, and the data specification. Taken as a whole, R0209 will ensure that the appropriate obligations and provisions are defined within the REC at MHHS go-live to support a successful transition to the enduring governance and operational arrangements developed as part of the MHHS programme.

You can read Ofgem’s decision in full here.

Next steps

Ofgem’s decision on R0209 introduces changes to the REC that were identified in August 2024 as necessary for implementing the MHHS arrangements. However, further changes will be needed before MHHS goes live. This will align the REC with changes agreed to in the MHHS design since the legal text for R0209 was baselined in August 2024. RECCo will work with Ofgem and the MHHS Programme to take forward such proposals as required.

Read more about our MHHS programme here.

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