Have your say: CCDG consultation on MHH Settlement

A new consultation on the detailed design of, and Industry Code changes from, the Market-wide Half Hourly Settlement (MHH Settlement) Target Operating Model (TOM) has now been published and we would like your feedback.

The consultation forms part of Ofgem’s Significant Code Review (SCR) on Electricity Settlement Reform.

What is MHH Settlement?

MHH Settlement will be a GB Settlement programme that will use half hourly Smart Metering information to settle the majority of households’ and small businesses’ electricity usage based on their recorded consumption. This is replacing the current system of widespread Non Half Hourly Settlement, which relies on estimates of consumers’ Half-Hourly usage based on physical, infrequent readings from traditional meters.

What is the new consultation about?

The CCDG’s consultation:

  • Sets out how it has developed the lower level detail on specific TOM design areas
  • Outlines new data items/processes and explains why some data items will no longer be required
  • Covers the remaining areas and dependencies on other industry change
  • Includes matrices that set out the amendments to sections of each industry code, the nature of the changes required and any dependencies on other areas of change
  • Gives an assessment of the detailed design against Ofgem’s Design and Development Principles for the TOM.

Get involved

If you would like to take part in the consultation then please visit the CCDG on MHH Settlement consultation page.

There you will find all the relevant documentation, as well as a summary video presented by Justin Andrews, Head of Design Authority at Elexon, who explains the role of the CCDG and the purpose of the new consultation.

The consultation period will close at 08:00 on 26 January 2021.

How will changes outlined in the consultation impact me?

The switch over to MHH Settlement will require major changes to the BSC and its systems, as well as other electricity codes such as the Smart Energy Code (SEC), the Distribution Connection and Use of System Agreement (DCUSA) and the Master Registration Agreement / Retail Energy Code (REC). The primary impacts will be on Suppliers, Supplier Agents and Distributors.

The key changes are:

  • Target Operating Model (TOM) requirements for the BSC, covering central Settlement and all market participants;
  • A new SEC User role to access the Half Hourly Settlement data from the Smart Meter;
  • DCUSA changes for Unmetered Supplies
  • Changes to data items and processes (including registration data) under the BSC and REC.

We understand that this is a busy time for you. However, this is your chance to have your say on the essential data items, processes and Code changes needed to deliver the MHH Settlement TOM.

Webinar

A webinar that discussed the aims of the consultation in more detail took place on Wednesday 13 January 2021. This webinar will be made available and published in due course on the MHH Settlement hub page.

How is Elexon involved?

Since 2017, Elexon has been leading industry work to deliver the MHH Settlement TOM to Ofgem. We are using our subject-matter expertise to support Ofgem’s SCR by

  • Developing the overall TOM design, Settlement timetable and transition approach (with the Design Working Group (DWG)). We delivered the TOM in August 2019 and Ofgem gave it preliminary approval in October 2019
  • Developing further detail on the outstanding areas of the DWG’s TOM design (with the Code Change and Development Group), and overseeing the identification of the major changes needed to Industry Codes (with the CCDG and other code bodies). This is the subject of this current consultation
  • Developing the reference architecture to support the TOM (with the Architecture Working Group). This will set the framework for subsequent IT system design. We will consult on this reference architecture in Q2 2021
  • Developing further detail on the DWG’s transition approach (with the CCDG). We will consult on this in Q2 2021
  • Carrying out the planning of a post-AWG architectural design phase. Although Ofgem are still to confirm the timescales
  • Overseeing the drafting of the detailed redlined changes to industry codes (with the CCDG and other code bodies). We will consult on this drafting in Q1 2022.

Importance of MHH Settlement for the smarter electricity system

Elexon Chief Executive, Mark Bygraves, said:

“MHH Settlement is a key step towards a smarter system as it enables new business models and services such as ‘electric vehicle to grid’ technology, electricity storage and the next generation of time of use tariffs. It will also enable faster, more accurate Settlement, reducing timescales from 14 to 4 months.”

“Elexon is playing a leading role in preparing the industry for this ‘once in a generation’ change. The CCDG consultation we are publishing today is your opportunity to have your say on the detailed design areas and Industry Code changes needed to deliver the MHH Settlement TOM. We look forward to hearing your views and taking them into account.”

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