Industry Change

Established in April 2024, TIG has played a significant role in developing several major Energy Theft‑related Change Proposals (CPs). While these efforts have delivered successful outcomes, REC has noted a recent decline in the number of new theft‑related Issues and CPs, prompting a review of how best to manage future work in this area.

CHIG, a well‑established and highly attended forum, now provides end‑to‑end support for REC Change Issues, including solution development, industry engagement, and governance processing. Many existing TIG participants already contribute actively to CHIG discussions.

Under REC’s proposal:

• All future Energy Theft Issues will be managed through CHIG.
• CHIG will feature a standing agenda item dedicated to Energy Theft.
• Issue‑specific working groups will be formed where deeper specialist focus is required—for example, work underway on I0265 Theft Calculator Usage & Suitability Assessment.
• TIG may be re‑established in the future should issue volumes or industry needs increase.

The REC Code Manager expressed thanks to TIG members for their contributions to date and emphasised that collaboration will continue within the CHIG environment.

During the recent TIG, several attendees shared concerns regarding the transition:

Some participants highlighted that theft specialists who routinely support TIG may not have capacity to attend monthly CHIG meetings, risking a reduction in expert input. REC clarified that attendance would only be required for the Energy Theft agenda slot, not the entire CHIG meeting.

Concerns were raised that discussions could become less candid in a larger forum—particularly if Ofgem or other wider audiences are present. TIG has historically provided a space for more open exchange on sensitive theft matters.

Several members questioned whether fewer issues are being raised because key stakeholders may not be participating, rather than because issues do not exist.

Participants noted that best‑practice sharing across the theft community is already limited, and some fear that integration could further reduce opportunities for industry learning.

The Chair of the UK Revenue Protection Association (UKRPA) also expressed similar concerns during the discussion, echoing members’ observations on the importance of maintaining specialist insight and open dialogue.
However, the UKRPA Chair acknowledged the rationale behind REC’s decision and reiterated that the UKRPA continues to provide a dedicated forum for:

• sharing best practice,
• discussing operational theft challenges,
• supporting industry collaboration, and
• offering technical input to RECCo and the REC Code Manager when required.

Its Chair emphasised that the UKRPA remains committed to working closely with REC to help the industry address Energy Theft and safety issues effectively.

Addressing Long‑standing Installation Barriers

Historically, scenarios where the meter supply neutral was taken from a shared neutral/earth (N/E) block were recorded under B07, a code requiring the job to be stopped and the Distribution Network Operator (DNO) to attend—even when no network intervention was necessary. This process resulted in avoidable delays, extra costs, and poorer customer journeys.

The introduction of C21 provides a more accurate reporting route for these non‑standard PME arrangements, enabling Meter Operator Agents (MOAs) to continue installations safely without requiring automatic escalation. The update aligns data guidance in DI51121 / J1824 with current field conditions. 

Industry Support and Expected Benefits

The proposal received unanimous backing from respondents representing both DNOs and other industry parties. Feedback highlighted the value of reducing unnecessary aborts, cutting back on unproductive DNO callouts, and improving installation success rates—particularly important during large‑scale programmes such as meter exchanges and legacy equipment removals.

Responses indicated varied implementation lead times across organisations, ranging from just a few days to several months. To support a consistent, coordinated rollout across all affected parties, a six‑month lead time was agreed upon.

Governance and Implementation

The change was reviewed and approved through the REC Metering Expert Panel (RECMEP), with updates made to STIRG guidance and associated legal drafting. The governance process confirmed that the change is low‑cost, proportionate, and beneficial for both operational performance and consumers. 

Implementation will follow a “big bang” approach on 27 February 2026, ensuring all market participants adopt the updated reporting code simultaneously. 

A Step Toward Greater Efficiency

The introduction of C21 marks a practical improvement in addressing real‑world installation scenarios. By reducing unnecessary site visits and simplifying how non‑standard PME arrangements are reported, the change is ex

Smart meters rely on the Smart Meter Wide Area Network, which is divided into regions based on the technology used. The North region, for example, utilises Long Range Radio, while the Central and South regions depend on cellular infrastructure. The SEC requires that the correct variant of Communications Hub is installed according to the region, but in recent months, a significant number of CHs have been installed outside their permitted regions. This has led to a situation where, without intervention, connectivity for these devices would be removed from 1 January 2026.

The consequences of such a disconnection would be severe. Ofgem’s decision document highlights that around 46,000 consumers would be affected, including over 16,000 on prepayment and more than 21,000 on the Priority Services Register (PSR). Many of these individuals rely on remote top-ups and support provided by smart meters, and losing connectivity could result in disconnection, particularly during the winter months when energy needs are greatest.

To address this, SECMP308 establishes a formal mechanism for maintaining connectivity for existing Out of Region CHs. DCC will enter into contractual agreements with service providers to ensure continued service for these devices in the North region. This arrangement will remain in place until 1 June 2026, giving suppliers time to replace the affected hubs with compliant alternatives. The modification also introduces a new charging mechanism, with suppliers required to pay up to £500 per Out of Region CH in their portfolio. If the pace of replacements increases and costs exceed this cap, additional expenses will be socialised across all suppliers and network providers.

The decision to approve SECMP308 was not taken lightly. The SEC Change Board, after considering the proposal and responses to a short consultation, recommended its approval, noting that it would better facilitate the objectives of the Smart Energy Code. Ofgem agreed, concluding that the modification would ensure the efficient provision and operation of smart metering systems, enable DCC to meet its licence obligations, and support consumers in managing their energy use.

Industry stakeholders raised concerns about the fairness of the charging arrangements, particularly for suppliers who had not installed Out of Region CHs and for Distribution Network Operators who benefit from network health data provided by these hubs. Ofgem acknowledged these concerns but emphasised that the situation had arisen due to continued installations in contravention of SEC requirements. The regulator stressed the importance of suppliers acting quickly to replace Out of Region CHs and avoid unnecessary charges.

Ultimately, Ofgem’s decision prioritises the needs of vulnerable consumers and the continuity of smart meter services. By approving SECMP308, the regulator has ensured that thousands of households will retain access to essential energy services through the winter and into the new year, while giving the industry time to implement a permanent solution.

MP308 Smart Energy Code (SEC) changes | Ofgem

The Retail Energy Code (REC) has published the slide deck and Q&A responses from the joint I0230 and I0261 Q&A session, held on 19 November 2025. These materials are now available to all stakeholders via the REC Portal.

Session Overview

The session, hosted by he REC Code Manager team, addressed two key REC issues impacting Meter Asset Providers (MAPs) and Meter Operator Agents (MOAs):

• I0230 – D0303 Flow Following MHHS Design Changes:
  The “Effective from Settlement Date” (J0049) in the D0303 flow has changed from mandatory to optional, following Market-wide Half-Hourly Settlement (MHHS) design changes. This adjustment may impact MAPs’ ability to accurately invoice suppliers, as critical data may not always be available. 

• I0261 – Addition of Export Flag in D0303 Flows:
  The rise in microgeneration has led to the creation of Export MPANs, complicating installation flows and increasing manual checks for MAPs. The proposal seeks to introduce an export flag in the D0303 flow to streamline operations and reduce errors.

Published Materials

The following documents are now available on the REC Portal:

I0230 I0261 Q&A session

Joint Information Request – How to Respond

A joint information request covering both I0230 and I0261 has been published and can be accessed from the Information Request Register on the REC Portal. 

Responses are invited by 05 December 2025.

Key Q&A Highlights

• Accessing the EES API:
  MAPs can apply for access via the REC Portal under Organisation Management > Make an Application. Approval typically takes around three months, subject to completion of information security and data protection assessments.

• Data Privacy:
  Portfolio extracts can exclude address information if required, and MAPs can request only the data they need. Address is an allowed data item as set out in the REC Data Access Matrix.Change Dependencies:
  The change to add Supplier Effective From Date to the IF-036 Market Message has been descoped as a REC Change, as IF-036 is owned by the Balancing and Settlement Code (BSC). Any future changes will require further coordination.