Elexon on Market-wide Half Hourly Settlement Programme Manager role
Elexon have published its views to Ofgem’s consultation about having a Programme Manager (PM) for the introduction of Market-wide Half Hourly Settlement (MHHS).
The PM role includes managing the implementation programme, overseeing the integration of the MHHS system, and co-coordinating the activity of 180 affected Parties.
Ofgem may decide to perform this role itself. Alternatively, an industry body could provide some, or all of the PM roles.
Why Elexon should be the Programme Manager
In the response, there were five reasons why Elexon should act as the Programme Manager, which are:
- expert understanding of MHHS
- a proven track record of working alongside industry to deliver major reforms, including Wider Access to the Balancing Mechanism and P272 (half hourly Settlement for businesses)
- In-depth technical knowledge of electricity Settlement, managing the Balancing and Settlement Code (BSC) for 20 years
- Consistently come top in Ofgem’s annual survey of code administrator performance Ofgem may decide that these roles should be taken on by an organisation other than itself
- A not-for-profit business model, meaning that Elexon exist solely for the benefit of energy market participants therefore we put quality first and act in the best interests of the industry and consumers
We have created a comprehensive overview of our views and set out our case for taking on the role. We also explain in more detail what the PM role is, and what Elexon would bring to the role.
MHHS will be one of the biggest overhauls of electricity Settlement since privatisation. It will also transition all Metering Systems to new Settlement arrangements.
MHHS will make electricity Settlement quicker, more accurate and more efficient, while also enabling wider ‘smart system’ benefits. Ofgem’s latest draft MHHS Impact Assessment identifies total net benefits for GB consumers of £1.6bn to £4.6bn over 25 years to 2045.
If you are responding to Ofgem’s consultation on which organisation should fulfil the PM role, we would invite you to consider our views in your response and if you agree, recommend that Elexon undertakes the role.