Levelisation - Selection of Reconciliation Operator

Decision
Publication date
Industry sector
Supply and Retail Market

The letter below confirms that Ofgem has selected the Retail Energy Code Company (RECCo) as the external reconciliation operator for the non-volumetric payment type Levelisation programme. The letter contains the reasons and justification for this selection.



In summary, Ofgem is developing policy and operational capacity for the potential introduction of a ‘Levelisation’ process across different payment methods. We published a policy consultation on 25 August 2023 that explains the options we are considering. The policy work is ongoing and no final decision has been made till date to implement the payment method Levelisation. We consider it prudent at this stage to select a reconciliation operator to develop a non-volumetric levelisation solution pending the outcome of policy decisions.



As such, we have selected RECCo to operate as the non-volumetric reconciliation operator. If the policy decision is to implement volumetric Levelisation at a later date, we will work with the industry to determine which body or bodies could operate as volumetric reconciliation operator alongside the non-volumetric system.