The Retail Energy Code (or REC) is the set of obligations governing market participants operating in the retail energy market within Great Britain

The REC is split into a number of sections each covering different elements of the obligations including the Main Body, the REC Schedules, Service Specifications, Operational Documents and the Data Specification.

The REC Main Body sets out the key governance and boilerplate provisions.

You can access the REC Main Body with a Portal account on the Energy Market Architecture Repository (EMAR).

Parties to the REC

The REC Main Body defines the categories of organisation that are eligible to join the REC as a REC Party, and the process for acceding to the REC Accession with the Accession Agreement documented in Schedule 3 Accession Agreement. It also defines how organisations that cannot become a REC Party can obtain access to REC Services by entering into an Access Agreement.

Ceasing to be a Party to the REC is also defined including the types of withdrawal. This process is covered further in the Schedule 19 Market Exit Schedule.

Governance

RECCo is established and the key functions of the organisation are defined including the REC Board Objectives, how the REC Board and REC Chair is appointed, and the REC Board Procedures. The Main Body also establishes the requirements for a Change Panel, the REC Performance Board and the process for creation of other Sub Committees as required.

The requirement for the REC Board to appoint a Code Manager role is defined and key tasks and functions are expressed.

The role of the REC Performance Assurance Board and Events of Default are outlined. These are covered further in the Performance Assurance Schedule.

Annual Strategy, Budget and Costs

The requirements for the setting of an Annual Strategy and budget by the REC Board are defined including the process for amendment of budget, the publication of the annual budget and the recovery of costs. The Main Body also defines when the REC Board should publish the annual report and the key activities that need to be included.

REC Charging Methodology

Clause 10 of the Main Body requires the REC Board to develop the REC Charging Methodology and obligates the REC Board to review this and propose changes when required. The process of determining and publishing the REC Charging Statement is also covered.

Boilerplate provisions

A number of standard clauses are also covered in the Main Body of the REC including Intellectual Property Rights, Limitation of Liability, Confidentiality, Data Controller and Data Processor Obligations, Force Majure, Disputes, Appeals, Derogations and Audit

Contract Managers, Operational Contacts and Party Details

The requirements for each REC Party to appoint a Contract Manager and the role of the Contract Manager are covered within Clause 24 of the Main Body. This Clause also defines the requirement for Parties to appoint Operational Contacts and the need to maintain and keep updated Party Details as published on the REC Portal.