Ofgem published its Consumer Consent Solution consultation on 9 August 2024, setting out proposals for a digital system that would let households share their energy data with third parties1. The consultation closed on 5 October 2024, with responses requested by 4 October 20241. Ofgem has since published its decision, dated 29 April 2025, confirming the Retail Energy Code Company (RECCo) as the Delivery Body for the solution, to be governed under the Retail Energy Code2.
The consultation proposed a solution that would "enable consumers to share their energy data with trusted third parties to receive tailored services to manage their energy bills", covering the granting, managing, reviewing and revoking of consent1. Ofgem identified three potential delivery bodies: ElectraLink Ltd, the Retail Energy Code Company Ltd (RECCo) and Smart DCC Ltd1. Its proposal was that RECCo be selected1. It also proposed that supply licensees be obligated through a licence condition to record consent granted via the solution, to ensure "one version of the truth"1.
Ofgem received 50 responses to the consultation, comprising nine suppliers, seven technology companies, seven code bodies, six third party intermediaries, six nonprofits or trade bodies, five network licensees, five consumer groups and charities, two from the finance sector, two from other organisations and one from a university2. When presented with the three delivery body options, 20 respondents preferred RECCo and 10 disagreed2. Ofgem's decision confirms RECCo as Delivery Body and states that the final detail for the data model is best selected by RECCo with advice from working groups, though it considers "a hybrid model with more decentralised aspects to be the most supported approach"2.
"Our decision is to confirm our minded to position, namely that the Retail Energy Code Company (“RECCo”) will be the Delivery Body of the Consumer Consent Solution and the solution will be governed under the REC."
Funding for development and delivery will come from the Retail Energy Code cost recovery model, described as an interim funding model that Ofgem and RECCo may re-examine once the solution is deployed beyond the Minimum Viable Product stage2. Indicative costings are estimated at approximately £2.7 million for the first year of development and approximately £4.6 million over the second year, a total of £7.3 million over two years, with subsequent running costs estimated at £2 million per annum2. Ofgem states that split between consumers, this works out to 26p per household over the two years of development, with costs apportioned in this manner falling within the Default Tariff Cap as part of REC costs2.
| Item | Figure |
|---|---|
| First year of development | Approximately £2.7 million |
| Second year of development | Approximately £4.6 million |
| Total over two years | Approximately £7.3 million |
| Subsequent running costs | Approximately £2 million per annum |
| Cost per household over two years | 26p |
Why it matters for households
The consultation concerns who controls the flow of a household's smart meter data, and on what terms. Ofgem's stated aim is a standardised way for consumers to grant and manage consent, starting with smart meter consumption data and expanding to other datasets as resources and prioritisation permit2. For a household, a single recognised route for granting, reviewing and revoking consent bears on how easily energy data can be shared with a service provider, and how easily that permission can be withdrawn. Ofgem's decision notes that consent granted through the solution must be accepted by data owners across the energy sector to grant access to consumer data2. The decision also states that suppliers holding pre-existing consents must record them in the solution, which Ofgem says will be the subject of a full statutory consultation in 20262. The costs fall on households through the Retail Energy Code cost recovery model, at an estimated 26p per household over two years of development2.
What happens next
Ofgem is standing up three working groups to advise RECCo on design and delivery: Consumer Protection and Accessibility; Technical Design and Security; and Implementation and Governance2. Ofgem will chair these groups for a six-month period before handing full responsibility to RECCo2. Ofgem states it will conduct and consult on an Impact Assessment with detailed indicative cost inputs from RECCo2. A statutory consultation on modifying the supply licence to oblige suppliers to use the solution for recording consents is scheduled for 20262. Deployment of the Minimum Viable Product will follow comprehensive testing2. The consultation page records the status as closed with a decision1.
Sources2 cited
- Consumer Consent Solution consultation | Ofgem, ofgem.gov.uk
- Consumer Consent Decision, ofgem.gov.uk