Energy code reform phase 1: transitional measures and code changes
This consultation is open for responses
Closes 15 May 2026 (40 days remaining)
Summary
Ofgem consults on transitional measures to move BSC and REC governance to the new framework under the Energy Act 2023. This covers code text changes, licence revocation terms, and amended conditions for phase 1 code manager candidates.
Why it matters
This is the first concrete step in dismantling the existing code governance structure. Ofgem gains direct control over code direction — a structural shift from industry-led to regulator-led governance.
Questions being asked
Transitional measures
- Are the proposed code text changes appropriate?
- Are the proposed licence revocation terms reasonable?
Key facts
- •Consultation closes 15 May 2026
- •Covers BSC and REC (phase 1 codes)
- •Proposes licence revocation terms for existing code administrators
Timeline
Areas affected
Related programmes
Memo
## Energy code reform: phase 1 transitional measures
What this is
Ofgem's consultation on the practical steps to move BSC and REC governance to the new Energy Act 2023 framework. Covers code text changes, licence revocation for existing administrators, and new code manager licence conditions.
What changes
Currently, code modifications are proposed by industry and decided through governance panels. Under the new framework, Ofgem sets strategic direction via the SDS, and code managers implement changes within that direction.
This consultation deals with the transition: in-flight modifications, winding down existing governance, and new code manager licences.
Who is affected
- Elexon (BSC administrator) — facing licence revocation - RECCo (REC manager) — same transition - All BSC and REC signatories — must adapt to new governance
What to watch
Whether Ofgem's direction-setting role reduces or increases transaction costs. Industry-led governance was slow but gave participants influence. Regulator-led is faster but concentrates risk.
How to respond
By 15 May 2026 via Ofgem's consultation portal.
Source text
Energy code reform phase 1: transitional measures and code changes | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Energy code reform phase 1: transitional measures and code changes Publication type: Consultation Publication date: 2 April 2026 Closing date: 15 May 2026 Status: Open Topic: Energy codes Subtopic: Balancing and settlement code (BSC), Retail energy code (REC) Get emails about this page Print this page Related links Energy code reform: second implementation consultation Implementation of energy code reform: template code text Energy code reform: implementation consultation Energy code reform: Code manager licence conditions and code modification appeals to the CMA (GOV.UK) Share the page Share on Facebook Share on Twitter Share on LinkedIn Our proposed approach to transition to the new governance framework for phase 1 of energy code governance reform, including transitional measures and proposed changes to the BSC, REC and phase 1 code manager licences. Consultation description We are seeking feedback on the steps we need to take to be ready to transition to the new governance framework for the phase 1 codes, the Balancing and Settlement Code (BSC) and the Retail Energy Code (REC). In particular, we are consulting on our proposed approach to key changes needed to the BSC and REC code texts, and proposed licence revocation terms as well as amended licence conditions for the phase 1 code manager candidates. Who should respond We want to hear views from anyone who has an interest in energy code reform, as well as people who work in the energy sectors and the public. This includes: code administrators code parties central system delivery bodies consumer groups How to respond You can tell us about your views on the proposals by completing the response form provided with the consultation. If the response form is not fully accessible, you can also email us directly. Submit your response by 15 May 2026 by emailing industrycodes@ofgem.gov.uk . Consultation documents Energy code reform phase 1 - transitional measures and code changes consultation [PDF, 1.00MB] Annex A - Additional detail on the code manager performance framework [PDF, 113.38KB] Annex B - Revocation and termination of the code manager licence [PDF, 73.54KB] Annex C - Amendments to the Code Manager Standard Licence Conditions [PDF, 226.83KB] Energy code reform phase 1 transitional measures and code changes – response template [DOCX, 103.71KB] Get emails about this page Print this page Related links Energy code reform: second implementation consultation Implementation of energy code reform: template code text Energy code reform: implementation consultation Energy code reform: Code manager licence conditions and code modification appeals to the CMA (GOV.UK) Share the page Share on Facebook Share on Twitter Share on LinkedIn Close Notify me Would you like to be kept up to date with Energy code reform phase 1: transitional measures and code changes ? subscribe to notifications: Email Submit Close