Energy Code Reform Phase 1: Transitional Measures and Code Changes
Summary
Ofgem has published a consultation on phase 1 transitional measures and code changes for energy code governance reform. The consultation covers proposed modifications to the Balancing and Settlement Code (BSC) and Retail Energy Code (REC), along with amended licence conditions for phase 1 code manager candidates. Responses are due by 15 May 2026.
What changed
Ofgem is consulting on the transitional arrangements needed to move the Balancing and Settlement Code (BSC) and Retail Energy Code (REC) to the new governance framework under energy code reform. The consultation proposes changes to BSC and REC code texts, transitional measures for code parties and administrators, and amended licence conditions for the phase 1 code manager candidates, including revocation and termination terms.
Code administrators, code parties, central system delivery bodies, and consumer groups should review the consultation documents and submit responses by 15 May 2026 via email to industrycodes@ofgem.gov.uk. Parties affected by the new governance framework should assess their readiness for transition and provide feedback on the proposed transitional measures and code changes.
What to do next
- Review proposed code text changes to BSC and REC
- Assess readiness for transition to new governance framework
- Submit consultation response by 15 May 2026
Source document (simplified)
Energy code reform phase 1: transitional measures and code changes
Publication type: Consultation Publication date:
2 April 2026
Closing date: 15 May 2026 Status: Open Topic: Energy codes Subtopic: Balancing and settlement code (BSC), Retail energy code (REC) Get emails about this page Print this page
Related links
- Energy code reform: second implementation consultation
- Implementation of energy code reform: template code text
- Energy code reform: implementation consultation
- Energy code reform: Code manager licence conditions and code modification appeals to the CMA (GOV.UK)
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- Our proposed approach to transition to the new governance framework for phase 1 of energy code governance reform, including transitional measures and proposed changes to the BSC, REC and phase 1 code manager licences.
Consultation description
We are seeking feedback on the steps we need to take to be ready to transition to the new governance framework for the phase 1 codes, the Balancing and Settlement Code (BSC) and the Retail Energy Code (REC).
In particular, we are consulting on our proposed approach to key changes needed to the BSC and REC code texts, and proposed licence revocation terms as well as amended licence conditions for the phase 1 code manager candidates.
Who should respond
We want to hear views 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
You can tell us about your views on the proposals by completing the response form provided with the consultation. If the response form is not fully accessible, you can also email us directly. Submit your response by 15 May 2026 by emailing industrycodes@ofgem.gov.uk.
Consultation documents
Energy code reform phase 1 - transitional measures and code changes consultation [PDF, 1.00MB] Annex A - Additional detail on the code manager performance framework [PDF, 113.38KB] Annex B - Revocation and termination of the code manager licence [PDF, 73.54KB] Annex C - Amendments to the Code Manager Standard Licence Conditions [PDF, 226.83KB] Energy code reform phase 1 transitional measures and code changes – response template [DOCX, 103.71KB] Get emails about this page Print this page
Related links
- Energy code reform: second implementation consultation
- Implementation of energy code reform: template code text
- Energy code reform: implementation consultation
- Energy code reform: Code manager licence conditions and code modification appeals to the CMA (GOV.UK)
Share the page
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