Ofgem confirms Elexon will operate key IT data platform to support MHHS
Yesterday (21 April) Ofgem confirmed that the Balancing and Settlement Code will be used to govern and fund the new Data Integration Platform (DIP) to support Market-wide Half Hourly Settlement (MHHS). This means that Elexon will manage the DIP service provider, which is currently being procured through the MHHS Programme.
Ofgem has decided that Elexon will operate the DIP initially, pending finalisation by Ofgem and Government of the energy code reforms, which will determine which code arrangements should govern the DIP in the long-term.
The DIP will capture data from smart meters
Suppliers will use the DIP to share half hourly consumption information from consumers’ smart meters with Elexon, once MHHS is implemented in October 2025. Ofgem’s decision is an important step to ensure that MHHS supports the pathway to Net Zero.
The DIP will be built using ‘event-driven’ IT architecture (EDA) to capture the major increase in half-hourly data that Elexon will need to successfully implement half-hourly Settlement across the market. EDA is already used in different economic sectors. For example, Tesla uses it to capture trillions of ‘data events’ across its business every day.
Modification to allow a technology company to develop the DIP
Ofgem has already raised Modification P439 which would give the MHHS Programme powers to procure a technology provider and to deliver the DIP. Ofgem expects to make a decision on this change in early June.
Data from the DIP has an important role to play in moves to a smarter energy system, as it will help to provide more detailed information on energy use. This in turn supports developing new products and services for consumers.
Elexon’s experience in data management and cloud architecture
Elexon made a strong case to Ofgem for operating the DIP, based on our experience in centrally managing large volumes of data, and expertise in managing Settlement.
In addition, through development of the new platform, Elexon Kinnect, we are also operating cloud-based architecture which is similar to the EDA required for the DIP.
Most importantly, as per our core focus, we will operate the DIP for the benefit of all industry parties and consumers.
Consultation on governance and operating costs
Ofgem agreed that the DIP operating costs should be recovered from industry parties. Suppliers, network owners, consumer representatives and other industry parties should also have a role in governing the DIP.
Elexon will consult on the funding and governance arrangements soon as part of a BSC Modification for governance of the service provision.
More information
- MHHS Programme – in April 2021, Elexon was appointed by Ofgem to manage the industry-led programme to deliver MHHS. This has been separated, and ring-fenced from the rest of Elexon activities.
- BSC Insight: ‘Event-driven’ architecture can help to release the value of energy data – for background information on EDA and its benefits