Introduction of MHHS Implementation Monthly Charge

We have published details of the new monthly charge, which Suppliers will pay so that Elexon can recover the costs of the MHHS implementation programme.

Ofgem confirmed in April 2021 that Elexon will be Senior Responsible Owner and Programme Manager for MHHS implementation.

Approval of Modification P413 alternative

Ofgem also approved the Modification P413 ‘Market-wide Half Hourly Settlement Programme Manager’ alternative proposal in April 2021. It requires that MHHS Programme Management costs are recovered from BSC Suppliers on a per meter point basis.

On 10 June 2021, the BSC Panel set the rate for the new MHHS Implementation Management Charge at £0.03847/Supplier Volume Allocation MSID, per month. 

This new charge rate will come into effect in July 2021. The first invoice will recover programme costs incurred from April to July 2021.

Next steps

The period for providing feedback on the MHHS programme budget closed on 14 June.  We will provide the Elexon Board with details of the comments received. The Board will decide whether to approve the budget, or approve an amended version.

If the Board decides to amend the MHHS programme budget significantly, we will recalculate the rate for the MHHS Implementation Monthly Charge, and re-present it to the BSC Panel.

The Panel will vote on whether to approve the amended rate or continue with the approved rate and allow the year end reconciliation to address the difference between the budget and the actual spend incurred. The reconciliation process is used to return un-used budget to BSC Parties.

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