Clarifying Event of Default requirements
Summary
Following several recent events of non-payment for services and REC defaults it is clear that the event of default provisions in the Code are unclear. This change seeks to introduce clarity to the REC Main Body.
Latest update and next planned activity
Date of latest update
Latest Update
04/10/2023 - Following the approval of R0138, this change has been withdrawn.
Impacts Overview
Impacted Consumers
Electricity
Gas
Domestic
Non-Domestic
Impacted REC Parties and Market Participants
Energy Supplier
Distribution Network Operator
Gas Transporter
DCC
Shipper
Data Collector
Data Aggregator
Green Deal Provider
Green Deal Finance Company
Meter Asset Provider
AMR Service Provider
Impacted REC Documents
REC Main Body
Priority and rationale
Standard
Priority last updated on 29 May 2026
Solution development
No documents available.
There is currently no Change Plan.
Original submission
Change details
Anton Moden - REC Code Manager
16 Jun 2023
Change details
Clarifying Event of Default requirements
Following several recent events of non-payment for services and REC defaults it is clear that the event of default provisions in the code are unclear.
They expose RECCo to legal and financial risk, as well as making the default procedures opaque.
Clarity to be added to the Main Body, particularly: (i) Make clear as a separate subclause in 16.1 that persistent non-payment of REC Charges constitutes an EoD, to clarify this and avoid conflict between clauses 16 and 9/10 (ii) Include suspension of access to REC Services and withdrawal of MEM accreditation as consequences in separate subclauses in 16.4 (iii) Greater clarity on the applicability of this between for REC Parties, REC Service Users and Non-REC Party Service Users. There are also housekeeping changes, for example the term REC Board is used when this body is the RECCo Board.
This is being raised based on challenges utilising the provision.
Impacts
Electricity, Gas, Domestic Prepayment, Domestic Credit, Microbusiness, Small and Medium Enterprise (SME), Industrial and Commercial (I&C)
Switching experience, Billing accuracy, Trust and confidence, Safety, Security of supply, Ability to pay, On site experience
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REC Main Body
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No details provided
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Energy Suppliers, Distribution Network Operators, Gas Transporters, DCC, Shippers, Data Collectors, Data Aggregators, Green Deal Providers, Meter Asset Providers, AMR Service Providers, EES Users, GES Users, GDCC Users
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No details provided
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No details provided
Priority & timing
Yes
Clarity on these provisions is essential for the proper functioning of REC governance.
No
No
No details provided
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