Energy Networks Association (ENA) has expanded the capabilities of its Connect Direct platform, enabling installers to submit low carbon technology (LCT) applications for electric boilers, air conditioning units and plug-in solar devices. These additions build on the platform’s existing support for EV chargepoints, solar PV installations and heat pumps, further streamlining the connection application process for a wider range of technologies.

The enhancement supports the continued electrification of heat and transport, providing installers with a more efficient route for obtaining network approvals and reducing administrative burdens. With auto-approval rates reportedly reaching up to 40% for eligible applications, the platform is helping to accelerate the deployment of low carbon technologies while improving customer experience.

A further improvement allows installers to access more detailed information on applications that have been escalated for network assessment. This increased transparency should help installers better manage customer expectations by providing greater clarity on application status and next steps.

For the metering sector, the ongoing growth of LCT installations is expected to increase the importance of accurate metering, network visibility and data management as electricity demand patterns evolve. The continued development of digital connection processes such as Connect Direct will support industry efforts to deliver a more efficient and customer-focused transition to a low-carbon energy system.

The guidance provides a clear, proportionate framework for how significant, consumer‑impacting product issues or procedural incidents should be identified, escalated, communicated, and managed across the industry. It is intended to support the safe and effective rollout and ongoing operation of smart meters, while protecting consumer safety, confidence, and trust.

Version 1.0 has been developed in response to a Safety Advisory Group (SAG) action for SMIP to review and enhance existing arrangements for handling emerging product and safety issues. The aim was to improve clarity and consistency across industry participants, recognising the complexity of multi‑party delivery and the need for aligned responses where issues have potential system‑wide implications.

A key feature of the guidance is its emphasis on early and proportionate notification. It encourages timely escalation of issues that may affect consumer safety or confidence, even where technical investigation is still underway, helping to avoid delays that could increase risk or undermine public trust.

The guidance also focuses strongly on coordination and consistency of communications, recognising that fragmented or unaligned messaging across suppliers, networks, manufacturers, and metering agents can lead to confusion for consumers and stakeholders. It sets expectations for collaboration on consumer messaging and media handling, with DESNZ acting as a central coordination point where appropriate.

Clearer arrangements are set out for industry coordination and escalation, including when SMIP may convene relevant parties and stakeholder groups to support effective resolution of multi‑party issues. While responsibility for remediation remains with the impacted organisations, DESNZ maintains an oversight role to ensure issues are addressed proportionately and in a timely manner, particularly where inconsistent approaches could create further harm or uneven consumer experience.

Importantly, Version 1.0 places increased emphasis on learning and prevention. Beyond immediate remediation, the guidance establishes a mechanism for capturing anonymised lessons learned and sharing good practice across the programme, supporting continuous improvement and reduction of future risks rather than a sole focus on reactive response.

The guidance has been developed iteratively, informed by operational experience and extensive industry engagement. A draft was discussed at the Smart Meters Operations Group (SMOG) in December 2025, followed by targeted engagement with industry bodies, including representatives from the Energy & Utilities Alliance (EUA) and the UK Metering Forum (UKMF). Subsequent refinements addressed feedback on the scope of security‑related incidents, alignment with existing reporting frameworks, and sensitivities around the handling and onward sharing of commercially or contractually sensitive information.

The final Version 1.0 document was recirculated to SMOG members in March 2026 for sense‑checking, with no further comments raised. DESNZ has confirmed that it is now exploring appropriate options to make the guidance more formally available, while remaining mindful of governance, assurance, and information‑handling considerations.

The release of Version 1.0 represents a significant step forward in establishing a credible, system‑level framework for managing smart metering product and safety issues, reinforcing consistency, collaboration, and consumer protection across the programme.

Headline Movements (Typical Medium Consumption)

Price Cap Levels

Key Drivers of the Change

1. Policy Costs – Major Decrease

• Driven mainly by UK Budget 2025 measures removing or reducing several obligations from consumer bills:
  • ECO & GBIS no longer funded via bills.
  • Renewables Obligation (RO) allowance cut by 75% from April 2026.
• Warm Home Discount (WHD) costs move from standing charge → unit rates.
• Indexation for RO and FiT schemes changes from RPI → CPI.

2. Wholesale Costs – Modest Decrease

• Gas prices lower due to strong LNG supply, higher global production, and reduced Asian demand.
• Some offset from a short cold period in Jan 2026, causing price spikes.

3. Network Costs – Significant Increase

• Mainly due to RIIO‑3 price control decisions affecting:
  • Electricity Transmission
  • Gas Transmission
  • Gas Distribution
• Also impacted by new depreciation rules and updated WACC methodology.

4. Other Adjustments

• Operating, debt & industry costs: small decreases.
• VAT, headroom, EBIT allowance: small decreases.
• Appendices show detailed cost breakdowns for each payment type.

• Suppliers must ensure full compliance with licence obligations.
• Data to Ofgem must be accurate and timely.
• Ofgem will monitor service quality and take enforcement action where needed.

RECCo’s Draft Forward Work Plan for 2026–29 sets out a transformation agenda designed to modernise retail energy market services, strengthen governance, prepare for the Code Manager Licence, and support emerging flexibility markets. The plan balances continuity of today’s core services with investment in future‑ready digital and regulatory capabilities.

 

RECCo, established in 2019 as a not‑for‑profit body overseeing the Retail Energy Code (REC), is at a pivotal transition point. Government policy on clean power, consumer‑led flexibility, and Ofgem’s Strategic Direction Statement (SDS) are accelerating expectations on market governance. With original contracts nearing end‑of‑life and a Code Manager Licence imminent, RECCo is repositioning itself for a more accountable, digitally enabled future.

RECCo will become the Licensed Code Manager, increasing its accountability and decision‑making responsibility.
Key elements:

A major modernisation programme will overhaul REC’s digital estate and services.
Planned for 2026:

RECCo will continue stabilising and delivering existing market services including:

Inquiry Services timeline:

RECCo will play a system‑shaping role in emerging flexibility markets.

Planned actions:

(14% increase vs expectation)

RECCo is positioning itself for a more proactive, accountable, and digitally capable role at the centre of the UK retail energy market. Its 2026–29 plan is designed to:

Why the change is required

The current REC‑mandated commissioning process takes up to 85 working days (WDs) end‑to‑end. Under MHHS, RF will occur just ~88 WDs after consumption, meaning:

• Defects may be discovered at or after RF.
• Settlement errors could become irreversible.
• Parties (DNOs, MOAs, Suppliers) could be held liable for issues they cannot correct.
• Calendar effects (e.g., Easter + early May bank holidays) can push commissioning beyond RF.

This creates an industry‑wide settlement and compliance risk.

What the Change Proposal aims to achieve

The proposal does not change technical commissioning requirements (BSC CoP4), only the REC timescales.

It aims to:

• Ensure commissioning is always completed before RF.
• Reduce the likelihood of defects “crystallising” into Settlement.
• Improve end‑to‑end coordination between DNOs, MOAs and Suppliers.
• Establish a realistic and enforceable SLA framework under MHHS.

Two initial options are in development:

• Option A: Reduce the overall chain from 80 → 70 WDs
• Option B: Reduce from 80 → 60 WDs

(Subject to Impact Assessment and CHIG data.)

Key operational challenges

Panel discussions highlighted several constraints:

• Third‑party operatives (customer‑appointed installers) remain outside licensed control.
• DNO and MOA workforce capacity already stretched in some regions.
• Appointment lead‑time variability affects commissioning speed.
• BSC auditors monitor processes, not REC timescales—so REC must set realistic, evidence‑based SLAs.

These factors will strongly influence final timescale decisions.

Impacts

Consumers

• Fewer long‑term billing inaccuracies and Settlement errors.
• Reductions in unnecessary site revisits.

REC Parties

• Suppliers: Faster resolution of commissioning blockers.
• MOAs: Accelerated on‑site commissioning expectations.
• DNOs: Potential tightening of CT/VT commissioning from 16–21 WDs.
• No cross‑code impacts expected, but tracked via CCSG for BSC/DCUSA interactions.

Risks Identified

• Operational capacity constraints (MOA/DNO resource).
• Non‑licensed installer delays outside party control.
• Settlement crystallisation risk if commissioning remains too long.
• Compliance burden if deadlines are shortened too aggressively.
• Industry readiness to update systems and processes.

Timeline (from Proposal Plan)

• Dec 2025 – Apr 2026: Initial Assessment & Solution Development
• Feb – Apr 2026: Impact Assessment & Business Case
• May – Jun 2026: Consultation
• Jul – Aug 2026: Final Determination & Panel Vote (12 Aug)
• 13–27 Aug 2026: Appeal Window

This ensures implementation well ahead of MHHS M16 (Jul 2027).

Current status and next steps

• REC Code Manager issuing the Impact Assessment.
• CHIG will gather real‑world data (current SLA performance distribution).
• Industry responses will shape whether 60WD, 70WD or an alternative is viable.
• Evidence‑based refinement will follow before consultation.

Executive‑Level Takeaway

I0284 is a preventative, MHHS‑critical change ensuring commissioning completes within the compressed 4‑month Settlement timetable.
It reduces the ~85WD chain to a shorter, deliverable timeframe, balancing MHHS compliance with operational reality.

The REC Change Panel supports the current plan, and emphasises:

• Timescales must be achievable, not aspirational.
• Installer and DNO/MOA operational constraints must be reflected.
• Evidence from IA and real site data is essential to setting the new SLAs.

The change is strategically important, risk‑reducing, and time‑sensitive—requiring progression during 2026 to avoid compressing the industry ahead of MHHS go‑live.#

The REC Code Manager is planning to attend the AMO’s HHEMF 26-01, 19 February 2026, to discuss the issue.

Exciting News! The Association of Meter Operators Annual General Meeting is Coming Up!

We’re delighted to invite Members to join us for this year’s AGM, taking place on 19th and 20th March 2025 at the beautiful Ashorne Hill, Leamington Spa.This is a great opportunity to connect with fellow members, engage in meaningful discussions about the future of our industry, and gain valuable insights. Whether you’re a long-standing member or new to the AMO, we’d love to see you there!

Members, secure your place now – spaces are limited, so don’t miss out!

Looking forward to seeing you in March!