Energy code reform: statutory consultation on modifications to the Balancing and Settlement Code and affected licences

Consultation description 

Energy code reform is a joint programme between Ofgem and government to modernise the governance of Great Britain's energy codes. The Balancing and Settlement Code (BSC) and Retail Energy Code (REC) form the first phase of implementation and will be the first industry codes to transition to the new governance framework and operate with licensed code managers. 

This statutory consultation seeks views on proposed modifications to the BSC and affected licences required to implement the new governance framework for the BSC. The proposals include changes to:  

• code governance arrangements 
• code modification process 
• stakeholder advisory forums 
• code manager responsibilities 
• transitional arrangements 
• related electricity and gas licence changes 

We have also published a statutory notice, in accordance with schedule 12 to the Energy Act 2023, setting out the proposed modifications to the BSC and affected licences. 

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  

How to respond 

We welcome views from all interested parties, including energy market participants, consumer representatives, code parties and other stakeholders. Submit your response by 18 December 2026 by emailing industrycodes@ofgem.gov.uk.  

Unless confidentiality is requested, responses will be published on Ofgem's website.  

Note: Some of the files are not fully accessible. Please contact industrycodes@ofgem.gov.uk if you need an alternative format.