Energy consumers who use prepayment meters have historically paid more for their energy than those who pay via direct debit. Today, Ofgem confirmed that from 1st April 2024 standing charges will be made level, removing the prepayment meter premium. Ofgem also confirmed the acceptance of REC Change Proposal R0147, giving effect to a new REC Schedule and reconciliation scheme to be operated by RECCo, ensuring the equitable distribution of levelisation costs between suppliers.
RECCo selected as scheme operator – with the ability to implement change quickly and cost-effectively recognised by Ofgem
In October 2023, Ofgem selected RECCo as the scheme operator. We have since been working to develop industry processes and to design, build, test, and deliver a functional system that will facilitate reconciliation.
In today’s decision, Ofgem stated, “RECCo was selected as the delivery partner and the reconciliation operator as they already operated on a dual fuel basis and were able to work at ‘risk’ with the industry to carry out the required changes. As we were developing levelisation and reconciliation processes in tandem and at pace, RECCo was well placed to deliver the necessary code changes efficiently and with low potential costs in the possible event that Levelisation did not proceed. Since Reconciliation would require a code amendment and given that the REC covers both gas and electricity, it was deemed both an effective and efficient selection decision. Furthermore, the initial cost estimations suggested that RECCo could carry out both roles in the most cost-effective manner. ”
Learn more
In December 2023, we hosted a webinar detailing how the reconciliation scheme will operate, data reporting requirements and more. You can read the round-up here.
As part of the final preparations for the 1st April implementation date, the REC Code Manager is hosting a further webinar on 14th March 2024 (13:00-14:30). To view the full list of topics and register your interest, click here.
