Retail Energy Code (REC)

Page type: primary-anchored (mirrors REC, RECCo)

Last updated: 6 April 2026

The REC is the GB industry code governing the retail energy market. It covers consumer switching, metering operations, data exchange, energy theft reduction, prepayment, and retail market processes. It is the single rulebook for retail operations, having absorbed six legacy codes (MRA, SPAA, MOCoPA, MAMCoP, SMICoP, ASPCoP).

Source file: ~/knowledge/sources/rec-co/rec.md

What the REC does, in plain language

When a consumer switches energy supplier, a chain of data exchanges must happen: the new supplier is registered, metering data is transferred, addresses are verified, and the old supplier is deregistered. The REC is the rulebook for all of this. It also governs how meters are installed and maintained, how energy theft is detected, how prepayment systems work, how retail market data is shared, and how RECCo recovers its costs from market participants.

The REC is one of the newer industry codes. Ofgem created it in 2019 to replace a patchwork of legacy agreements that had accumulated over decades. The Central Switching Service (CSS) went live in July 2022 under REC v3.0, delivering next-day switching. REC v4.0 (September 2025) incorporated Market-Wide Half-Hourly Settlement (MHHS) changes.

Structure

The REC uses a Main Body (35 clauses) plus 30 numbered Schedules. This is different from older codes like the BSC which use lettered Sections.

Main Body: Governance and Framework (Clauses 1-14)

• Clause 1: Definitions (references Schedule 1)
• Clause 3: REC Objectives: (a) efficient retail market arrangements; (b) effective competition; (c) prompt, reliable, secure switching; (d) efficiency and innovation; (e) consumer protection
• Clause 4: Accession: licence-driven. Suppliers (SLC 48A), distributors, gas transporters, and metering parties must accede
• Clause 5: Party Categories: Electricity Supplier, Gas Supplier, Electricity Distributor, Gas Transporter, MEM, and others
• Clauses 6-10: Governance: RECCo (Cl.6), Code Manager (Cl.7), REC Board (Cl.8), Advisory Board (Cl.9), Panels including PAB, Change Panel, Technical Expert Panel (Cl.10)
• Clause 11: REC Services: RECCo procures and manages CSS, EES, GES, ETTS, GDCCD
• Clause 12: Relationship with other Codes: coordination with BSC, SEC, DCUSA, UNC
• Clause 14: REC Products: Baseline Statement listing all REC documents and versions

Main Body: Standard Terms (Clauses 15-35)

IP (Cl.15), liability limitation (Cl.16), confidentiality (Cl.17), data controller/processor (Cl.18-19), force majeure (Cl.20), disputes (Cl.21), appeals (Cl.22), derogations (Cl.23), Contract Manager appointment (Cl.24), audit (Cl.25), indemnity (Cl.26), notices (Cl.27), assignment (Cl.28), governing law England and Wales (Cl.32).

Schedules: Core governance (1-5)

• Schedule 1: Interpretation (all defined terms)
• Schedule 2: Transition (from legacy codes)
• Schedule 3: Accession Agreement
• Schedule 4: Company Governance (RECCo Board, committees, voting)
• Schedule 5: Change Management (Change Proposals, assessment, Authority/self-governance decision)

Schedules: Assurance (6, 9)

• Schedule 6: Performance Assurance (PAB, risk monitoring, assurance techniques)
• Schedule 9: Qualification and Maintenance (entry requirements, ongoing capability)

Schedules: Retail operations (7, 8, 10, 11, 19, 22)

• Schedule 7: Energy Theft Reduction (detection, investigation, Tip-Off Service)
• Schedule 8: Unbilled Energy Code of Practice
• Schedule 10: Charging Methodology (cost recovery from Parties)
• Schedule 11: Prepayment Arrangements
• Schedule 19: Market Exit (supplier exit process)
• Schedule 22: Market Stabilisation Charge (supplier failure cost recovery)

Schedules: Data and metering (12-17)

• Schedule 12: Data Access (consumer and market data rules)
• Schedule 13: Transfer of Consumer Data (data transfer on switch)
• Schedule 14: Metering Operations (installation, maintenance, removal)
• Schedule 15: Metering Accreditation (meter operator accreditation)
• Schedule 16: Smart Meter Installation (code of practice, formerly SMICoP)
• Schedule 17: Secure Data Exchange (protocols, security)

Schedules: Green Deal (18) and Legacy transition (20-21)

• Schedule 18: Green Deal Arrangements (GDCCD)
• Schedule 20: SPAA Transition
• Schedule 21: MRA Transition

Schedules: Switching (23-30, added v3.0)

• Schedule 23: Address Management
• Schedule 24: CSS Baseline and Configuration
• Schedule 25: Switching Data Processing
• Schedule 26: Entry Assessment for Switching
• Schedule 27: Provision of Switching Data
• Schedule 28: Resolution of Switching-related Consumer Complaints
• Schedule 29: Consumer Consent
• Schedule 30: Resolution of Consumer Facing Switching and Billing Issues

REC Services

RECCo procures and manages: Central Switching Service (CSS), Electricity Enquiry Service (EES), Gas Enquiry Service (GES), Energy Theft Tip-Off Service (ETTS), Green Deal Central Charge Database (GDCCD).

Key cross-references

• Electricity Supply Licence SLC 48A: requires suppliers to accede to REC
• BSC: settlement metering data, MHHS interaction
• SEC: smart meter registration, switching data flows
• DCUSA: distribution use-of-system, metering
• UNC: gas transportation, switching
• Energy Act 2023 Part 6: future code governance reform

Defined terms

See full register in source file (~/knowledge/sources/rec-co/rec.md). Key terms: CSS (Central Switching Service), RECCo, Code Manager, Party Category, REC Products, REC Services, Qualification, PAB, Change Proposal, Self-Governance.

Current status

• Version: REC v4.0 (September 2025)
• Administrator: RECCo (Code Manager appointed by RECCo)
• CSS: Live since July 2022, delivering next-day switching
• MHHS: Market-Wide Half-Hourly Settlement design implemented via R0209
• Energy Code Reform: Energy Act 2023 Part 6 will bring REC under new code manager

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