Ofgem has launched a new consultation on proposed modifications to the licences of future Code Managers for the Retail Energy Code (REC) and Balancing and Settlement Code (BSC), marking the next phase of Energy Code Reform. The consultation proposes new licence conditions and transitional arrangements to support the transfer of governance responsibilities from existing industry panels and committees to licensed Code Managers.
For the metering sector, the most significant implication is the continued shift away from panel-led decision making towards a model where the licensed Code Manager becomes the formal decision maker for REC modifications, supported by advice from the new Stakeholder Advisory Forum (SAF). Existing governance bodies, including the Metering Expert Panel (MEP), are expected to cease their current approval roles, with governance responsibilities transferring to the Code Manager under the new framework.
While formal decision making will move away from metering-specific panels, Ofgem and RECCo have emphasised that industry expertise will remain central to change development. Metering stakeholders are expected to continue influencing modifications through Operational Metering Forums, workgroups, consultations and specialist advisory arrangements.
- Transfer of governance responsibilities from existing REC governance bodies to licensed Code Managers.
- Introduction of special licence conditions covering budgets, cost recovery, delivery planning and performance management.
- Greater accountability on Code Managers to demonstrate how stakeholder and technical expertise has informed decisions.
- Continued reliance on operational metering forums and specialist workgroups to provide metering expertise during modification development.
- Transitional arrangements designed to minimise disruption as the new governance model is implemented.
Although the consultation is primarily focused on governance and licensing, the changes could have a significant impact on how metering modifications are prioritised, assessed and progressed under the REC. Metering market participants should closely monitor the development of the new governance framework and seek opportunities to engage with the SAF, Operational Metering Forums and related consultation activities to ensure metering expertise continues to shape future code development.
Consultation closes on 1 October 2026.