Board approves budget for MHHS implementation programme
Elexon is managing the implementation of the industry-led MHHS Programme and as such is the Senior Responsible Owner and Programme Manager. Elexon’s Board has approved a budget of £14.5m for the first year (2021/22) of the implementation programme for Market-wide Half Hourly Settlement (MHHS).
Budget agreed by Elexon Board
Elexon’s Board agreed the budget at its July meeting and noted that the £14.5m included a not insignificant level of contingency given the uncertainty of costs at this stage.
A paper was also presented to the BSC Panel at its meeting on 8 July which provided a summary of the responses received on the draft MHHS Programme Budget and the Board’s decision to approve the 2021/22 budget. You can read the paper on the BSC Panel area of our website.
About the costs
The costs for the MHHS implementation programme will be paid for by Suppliers, as set out in the Modification P413 alternative, which was approved by Ofgem in April 2021.
Payment of the first monthly invoices for the programme begins this month, as set out in Elexon Circular EL03322.
Elexon is a not for profit company therefore any unused amounts from the budget will be returned to Suppliers.
Initial consultation
Ofgem expects MHHS Programme implementation to complete by October 2025. We issued a budget document for comment in May which, as well as the financial aspects of the Programme, also provided stakeholders with information on the objectives, structure and governance arrangements for the implementation programme.
Updated Business Plan for 2021/22
We have updated our Business Plan for 2021/22 with the confirmation of the Board’s decision. We have also updated the Elexon budget table 1.3 on page 40 of the plan, to reflect the MHHS implementation budget.