Gemserv, Deloitte and Capgemini have been appointed to jointly manage the new Retail Energy Code (REC) being introduced to harmonise metering and switching arrangements across electricity and gas.
The trio were selected by the Retail Energy Code Company (RECCo) – the corporation formed to get the code up and running – following a competitive procurement process.
The REC was created to bring together the requirements concerning energy retail activities into a single code, thereby replacing both the Supply Point Administration Agreement (SPAA) and the Master Registration Agreement (MRA).
The first version of the REC, setting out the transitional arrangements, went live in February 2019, meaning all energy suppliers, gas networks and electricity distribution networks are now required to accede as part of their license. The second version, consolidating the SPAA and the MRA, is due to take effect in September 2021.
Gemserv, Deloitte and Capgemini will together perform the new code manager function that is also gradually replacing the code administrator role for existing codes. As such, the companies will be more actively involved in the development of code modifications than has historically been the case for code administrators.
The RECCo said: “All three providers will collaborate so the single code manager operates seamlessly to parties, industry and stakeholders,” adding: “They will deliver this through a consumer outcomes-based approach, an accessible set of arrangements in plain English and digital format with robust technical and performance assurance frameworks.”
Gemserv has been appointed as REC professional services provider (RPS) and will therefore be responsible for: delivering the online portal through which all other services can be accessed; providing support to code parties through account managers; managing the code change process; providing the front-line service desk; and acting a repository of knowledge on the code.
The company is currently the code administrator for the MRA, which sets out the metering and switching arrangements for electricity. The SPAA does the same for gas and is currently administered by Electralink.
Jon Harley, executive director and RPS mobilisation director at Gemserv, said: “The REC will modernise how retail energy markets operate, delivering better outcomes for consumers, supporting net-zero and reducing regulatory burdens.
“Gemserv is now focussed on getting the REC up and running to deliver these benefits, and we look forward to working closing with RECCo, the other code manager service providers and industry stakeholders on this.”
Deloitte has been appointed as the REC performance assurance provider meaning the firm will be responsible for monitoring the performance of market participants and services providers and administering the entry and exit of parties on behalf of the Performance Assurance Board.
And as REC technical service provider, Capgemini will be tasked with implementing the REC digitalisation strategy and developing and maintaining the Energy Market Architecture Repository that will contain a “digital twin” of the code.
Ofgem’s faster switching arrangements are currently expected to be incorporated into the REC as part of its third iteration in May 2022 but will initially be kept dormant by the regulator.