Implementation of Ofgem-led code modification prioritisation within the REC
Summary
Ofgem has consulted on, and is progressing towards a decision on, the introduction of a harmonised code modification prioritisation framework across all industry codes, under its transitional powers in Schedule 12 to the Energy Act 2023. This Issue is being raised to provide the formal REC change vehicle through which Ofgem’s prioritisation reforms can be tracked, developed and implemented in the REC, once the Authority has published its decision and statutory modification notice.
Latest update and next planned activity
Date of latest update
Latest Update
This change Proposal has been approved for implementation on the date as directed by the Authority.
Impacts Overview
Impacted REC Documents
Schedule 1 - Interpretations and Definitions
Schedule 5 - Change Management
Priority and rationale
Priority last updated on 17 Sep 2026
Change Reports, Impact Assessments, Consultations and Documents
Change Reports
Solution development
Problem Statement
In the absence of REC changes, the REC would not align with Ofgem’s harmonised approach to code modification prioritisation, creating inconsistency with other industry codes and undermining the objectives of Energy code reform.
No documents available.
There is currently no Change Plan.
Original submission
Change details
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12 Jan 2026
Change details
Implementation of Ofgem-led code modification prioritisation within the REC
Ofgem has consulted on, and is progressing towards a decision on, the introduction of a harmonised code modification prioritisation framework across all industry codes, under its transitional powers in Schedule 12 to the Energy Act 2023.
The REC does not currently reflect the proposed prioritisation framework. In order to give effect to Ofgem’s decision once made, changes will be required to the REC to introduce consistent prioritisation criteria, prioritisation categories, governance arrangements and associated reporting obligations.
This Issue is being raised to provide the formal REC change vehicle through which Ofgem’s prioritisation reforms can be tracked, developed and implemented in the REC, once the Authority has published its decision and statutory modification notice.
The REC does not currently reflect the proposed prioritisation framework. In order to give effect to Ofgem’s decision once made, changes will be required to the REC to introduce consistent prioritisation criteria, prioritisation categories, governance arrangements and associated reporting obligations.
This Issue is being raised to provide the formal REC change vehicle through which Ofgem’s prioritisation reforms can be tracked, developed and implemented in the REC, once the Authority has published its decision and statutory modification notice.
In the absence of REC changes, the Retail Energy Code would not align with Ofgem’s harmonised approach to code modification prioritisation, creating inconsistency with other industry codes and undermining the objectives of energy code reform.
Ofgem has indicated that a harmonised prioritisation framework is intended to:
• support more efficient governance of code modifications;
• enable industry to focus resources on higher-priority changes;
• support implementation of the Strategic Direction Statement (SDS); and
• facilitate transition to future code manager arrangements.
Failure to implement the required REC changes would limit the REC’s ability to operate consistently within the reformed code governance framework.
Ofgem has indicated that a harmonised prioritisation framework is intended to:
• support more efficient governance of code modifications;
• enable industry to focus resources on higher-priority changes;
• support implementation of the Strategic Direction Statement (SDS); and
• facilitate transition to future code manager arrangements.
Failure to implement the required REC changes would limit the REC’s ability to operate consistently within the reformed code governance framework.
Subject to Ofgem’s final decision and statutory modification notice, the effective solution is to implement the harmonised code modification prioritisation framework within the REC.
This will require:
• amendments to REC Schedule 1 (Interpretations and Definitions);
• amendments to REC Schedule 5 (Change Management);
• updates to the REC Change Panel Terms of Reference;
• incorporation of the Authority’s prioritisation criteria, categories and governance requirements; and
• identification and implementation of any consequential changes required to REC operational documents, guidance, tools and processes (e.g., updates to Wiki articles, User Guides, REC Portal pages and Change submission forms)
This Issue / Change Proposal will act as the formal REC mechanism to co-ordinate, track and deliver those changes in line with Ofgem’s decision and implementation timetable.
Changes to processes impacting REC Parties will be communicated via the Release process
This will require:
• amendments to REC Schedule 1 (Interpretations and Definitions);
• amendments to REC Schedule 5 (Change Management);
• updates to the REC Change Panel Terms of Reference;
• incorporation of the Authority’s prioritisation criteria, categories and governance requirements; and
• identification and implementation of any consequential changes required to REC operational documents, guidance, tools and processes (e.g., updates to Wiki articles, User Guides, REC Portal pages and Change submission forms)
This Issue / Change Proposal will act as the formal REC mechanism to co-ordinate, track and deliver those changes in line with Ofgem’s decision and implementation timetable.
Changes to processes impacting REC Parties will be communicated via the Release process
This Issue relates to Ofgem’s energy code reform programme and its statutory consultation and proposed decision on harmonised code modification prioritisation.
Decision on the preliminary Strategic Direction Statement and governance arrangements for industry codes
Energy code reform programme – statutory consultation (20 Nov 2025)
Annex A: Proposed legal drafting of code modification prioritisation procedure
Annex B: Definitions to form future guidance on code modification prioritisation
Decision on the preliminary Strategic Direction Statement and governance arrangements for industry codes
Energy code reform programme – statutory consultation (20 Nov 2025)
Annex A: Proposed legal drafting of code modification prioritisation procedure
Annex B: Definitions to form future guidance on code modification prioritisation
Impacts
No details provided
Achieving Net Zero, Trust and confidence, Other (please provide details in Additional information box below)
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Schedule 1 - Interpretations and Definitions, Schedule 5 - Change Management
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REC Change Panel - Terms of Reference
The schedules and operational documents identified above reflect those for which Ofgem has provided proposed legal drafting to date. Further REC documents, tools or guidance may require consequential updates and will be identified and progressed as part of this Issue/ Change Proposal.
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Priority & timing
No
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No details provided
Achieving Net Zero, Trust and confidence, Other (please provide details in the Additional information box below)