REC Services Procurement Clarification

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Summary
This change proposes amendments to Clause 5.3 of the Main Body, to clarify that all provision of REC Services to the REC Service Users (including the Centralised Registration Service is procured by, and from, the CRS Provider) and are procured from the REC Service Providers by RECCo.

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04/10/2023 - Following the approval of R0138, this change has been withdrawn.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 REC Parties and Market Participants
DCC Other
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

Ann Perry - -
1 Aug 2022

Change details

REC Services Procurement Clarification
A new Clause 5.3 was added into the REC Main Body during the REC v3 development which currently reads: “RECCo is responsible for procuring the REC Services (including the Centralised Registration Services) from the REC Service Providers (including the CRS Provider). RECCo is then responsible for supplying the REC Services (including the Centralised Registration Services) to the REC Service Users in accordance with this Code. Any and all provision of services by the REC Service Providers to the REC Service Users under this Code is undertaken solely as procured by RECCo under this Code. It is acknowledged that the REC Services are supplied to RECCo and used for the purposes of its business as the central administrator of this Code and the REC Services. Acting via the REC PAB, RECCo will take action against the REC Service Providers where they fail to provide the REC Services in accordance with this Code.” The text that reads “Any and all provision of services by the REC Service Providers to the REC Service Users under this Code is undertaken solely as procured by RECCo under this Code” requires amending for the following reasons: - It refers to “all services” by REC Service Providers which is too wide and ambiguous this should only refer to the defined term “REC Services” consistent with the rest of this clause and is necessary to avoid ambiguity. - The meaning of “REC Service Providers” includes DCC but RECCo is not entitled to be a “REC Service User” (clause 5.2). The result is that the 5.3 wording which starts “Any and all provision of [REC Services] by REC Service Providers to REC Service Users” does not correctly reflect the understanding that: (i) DCC, in its role as a REC Service Provider, will be providing the CRS to RECCo (not to REC Service Users), which DCC has itself already procured from switching providers under the DCC Licence and for which DCC will invoice RECCo under clause 9.25 from 1 April 2023 onwards; (ii) the CRS is not “solely” procured by RECCo under the Code – the CRS is first procured by DCC and stated to be procured or provided in its role as CRS Provider under the Code (see, for example, clause 13.10); (iii) REC Service Providers will be performing the REC Services but the intention is that they will not be “providing” the REC Services to REC Service Users in a VAT sense, so this wording conflicts with the rest of the clause.
The current drafting could impact both DCC and RECCo’s ability to protect input VAT entitlement as a recipient of the CRS.
Amending Clause 5.3 to clarify that all provision of REC Services to the REC Service Users (including the Centralised Registration Service is procured by, and from, the CRS Provider) and are procured from the REC Service Providers by RECCo. These clarifications will help protect both DCC and RECCo’s input VAT entitlement.
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Impacts

Other (please specify in the Additional information box below)
Other (please provide details in Additional information box below)
No Consumer impacts
REC Main Body
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DCC
RECCo
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No
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Priority & timing

Yes
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Activity