Energy code reform: second implementation consultation

Details of outcome

This consultation is closed. We have now reached decisions following this consultation on the implementation of energy code reform. Stakeholders broadly supported our proposals and agreed on the need to modernise the current complex and fragmented code governance framework. 

We have made decisions on: 

• our approach to the future code modification process
• the operation of stakeholder advisory forums
• crosscutting consequential code changes
• BSC/REC cost recovery
• our approach to directing central system delivery bodies
• implementation and assurance
• transition

These decisions will support the implementation of the new code governance framework enabled by the Energy Act 2023, under which licensed code managers will ensure that codes evolve in line with Ofgem’s strategic priorities. 

The feedback received has helped refine the detailed design of the new arrangements. Get details by reading our code manager selection guidance.

Further consultation

We are now seeking views on specific policy areas. These include the draft template code text for the new code modification process and stakeholder advisory forums. Read and feedback on our proposed template code text.

Read the full outcome

Original consultation

We are seeking feedback on our latest proposals for the implementation of energy code reform.  

Who should respond 

We want to hear views and feedback from anyone who has an interest in energy code reform, as well as people who work in the energy sectors and the public. This includes:  

• code administrators
• code parties
• central system delivery bodies
• consumer groups  

Background

We consulted on reforming the energy industry codes with the government in July 2019 and then again on the design and delivery of energy code reform in July 2021. These consultations helped to shape the new code governance framework in the Energy Act 2023.  

We also published a call for input in December 2022 and an initial consultation on our approach to implementing the reforms in January 2024.  

In August 2024, we published our policy decisions on the proposals we sought views on in our first implementation consultation and also noted our intention to consult further on detailed implementation proposals in due course.  

Our proposals

This consultation sets out our proposals on a range of policy areas on how code governance reform would be implemented in practice, including sections on: 

• the code modification process
• Stakeholder Advisory forums (SAFs)
• cross-cutting consequential code changes
• cost recovery for the BSC and REC codes
• directing central system delivery bodies
• our implementation and assurance approach
• our transition plan