Martin Brailsford

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation on proposed amendments to the Network Evolution Transition and Migration Approach Document (NETMAD) concerning the reimbursement arrangements for Communications Hub (CH) only replacement visits. The proposed changes focus on improving the end-to-end reporting and reimbursement process administered by the Data Communications Company (DCC) for qualifying CH replacement activities. [A key proposal is to strengthen transparency around reimbursement payments by requiring the DCC to report the number of reimbursement payments it expects to make to lead Energy Suppliers. This is intended to improve visibility of forthcoming reimbursement obligations, support financial planning, and enhance oversight of the programme as the smart metering communications infrastructure transitions from legacy 2G/3G technology to 4G solutions.

For AMO members, the consultation is particularly relevant as it affects the governance and administration of Communications Hub replacement activity and the associated reimbursement framework. While the proposals do not alter the underlying reimbursement methodology, they seek to improve reporting accuracy, forecasting, and accountability within the process. Enhanced reporting may also provide stakeholders with greater confidence that replacement activity volumes and reimbursement payments are being effectively monitored and managed.

The consultation forms part of the wider smart metering migration programme supporting the replacement of legacy communications technology and ensuring continued smart meter connectivity across Great Britain. Responses are invited until 2 October 2026. 

The proposals are primarily administrative and reporting-focused, but they support more effective management of the large-scale Communications Hub replacement programme. Improved reporting and reimbursement governance should help maintain confidence in the delivery framework for ongoing smart metering communications upgrades. 

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.

RECCo has announced the appointment of Robert Hull as the Independent Chair of its new Stakeholder Advisory Forum (SAF). The Forum will bring together representatives from across the energy sector to provide advice and constructive challenge to the REC Code Manager, helping to inform Retail Energy Code (REC) modifications, strategic priorities, and implementation activities under the future governance framework.

Robert Hull brings more than 30 years of experience across the energy and utilities sector, having held senior leadership roles with Ofgem, National Grid and KPMG. His appointment reflects RECCo’s commitment to ensuring independent, balanced stakeholder engagement as the REC governance model continues to evolve.

The new Forum will provide a valuable opportunity for industry participants to contribute their expertise and market experience, helping to shape the future direction of the Retail Energy Code and wider retail energy market governance arrangements. Nominations for Code Party representatives are expected to open in September.

From 1 September 2026, RECCo has introduced a new approach to Performance Assurance, marking a significant step towards a more outcome-focused and evidence-led framework for identifying, prioritising and addressing risks across the retail energy market. The new approach is underpinned by an updated Performance Assurance Operating Plan (PAOP), Retail Risk Register (RRR) and Performance Assurance Methodology and Techniques (PAM), all of which have been approved by the Performance Assurance Board and are now in effect.

The revised framework strengthens the connection between retail market risks, consumer and market outcomes, and the assurance activities undertaken by RECCo. At its core is a new outcome-based Retail Risk Register, which prioritises the risks that matter most to consumers and the market, helping direct assurance activity towards areas where it can have the greatest impact. The accompanying Operating Plan sets out the assurance activities for 2026/27, including initiatives focused on data quality, vulnerable customer protection, energy theft, consumer consent, switching and billing performance, and the introduction of new market services. 

A key element of the transition is the development of an Outcome Measurement Framework (OMF), which will provide stronger evidence of how REC obligations influence consumer and market outcomes. Over the coming year, the framework will be refined to improve risk prioritisation, enhance decision-making and support more targeted assurance interventions. 

Supporting these changes is a new service delivery model that sees RECCo coordinating a network of specialist assurance providers, bringing together a broader range of expertise, data analysis and industry insight. This model is designed to improve flexibility, strengthen assurance capability and provide greater transparency regarding the effectiveness of assurance activities. 

Importantly, the introduction of the new framework does not alter REC Parties’ existing obligations. Instead, it changes how Performance Assurance is organised, targeted and delivered, ensuring assurance activity remains focused on achieving better outcomes for consumers and the retail energy market. 

As Elizabeth Lawlor prepares to become Chief Executive Officer of RECCo, she has outlined a clear vision focused on delivering positive outcomes, listening to stakeholders, and supporting innovation across the retail energy market. Drawing on more than 25 years of experience in code management and energy market governance, Elizabeth emphasises the importance of building on RECCo’s strong foundations while preparing for significant future market change.

A key theme of her leadership approach is collaboration. Elizabeth has committed to engaging closely with REC Parties, industry stakeholders, regulators, consumer representatives and service providers to better understand challenges, remove unnecessary complexity and ensure governance arrangements remain effective, proportionate and focused on outcomes. 

Looking ahead, RECCo’s priorities include supporting the transition to the licensed Code Manager model, advancing work on data, digitalisation and consumer consent, and strengthening cross-code collaboration. Elizabeth believes governance should enable innovation rather than hinder it, ensuring market arrangements remain flexible whilst continuing to protect consumers and maintain market integrity.nuity and evolution. RECCo intends to build on its existing successes whilst helping create a more joined-up, efficient and consumer-focused retail energy market. Under Elizabeth’s leadership, the organisation aims to deliver practical improvements that benefit both market participants and consumers as the energy sector continues to evolve. 

The Retail Energy Code Company (RECCo) has published an update outlining the significant progress made to Metering Assurance audits since the introduction of the Consolidated Metering Code of Practice (CoMCoP) in 2023. Working closely with its Metering Scheme Auditor (Wilcock Consultants Ltd), RECCo has enhanced guidance, reporting, stakeholder engagement and audit support resources to improve both compliance and the experience of audited parties. 

Key improvements include the introduction of downloadable audit templates, FAQs and example submissions, alongside strengthened reporting and management information. These changes have resulted in higher stakeholder satisfaction, improved clarity of audit requirements, and greater confidence in audit preparation. Overall satisfaction with the audit process increased from 8.7 to 9.1 out of 10, while ratings for audit preparation and advance notice reached 9.85 out of 10. 

Looking ahead, RECCo has extended the Metering Scheme Auditor contract until March 2028, providing continuity and enabling further development of the Metering Assurance regime. The organisation remains focused on delivering a robust, transparent and proportionate assurance framework that supports consumer protection, industry confidence and continuous improvement across the metering sector.

Source: Three years of improving Metering Assurance audits – and what’s next published by the Retail Energy Code Company on 20 August 2026.