Ofgem proposes that Elexon is owner for MHHS implementation
Ofgem has today, 22 January 2021, published its consultation on implementation principles for Market-wide Half Hourly Settlement (MHHS) in which it explains its ‘plan to clearly place responsibility for management and delivery of the programme with industry.’
Recognition for Elexon’s existing work on Settlement
Ofgem further states that in recognition of Elexon’s existing work in relation to Settlement, its plan is for ‘Elexon to have responsibility for establishing and operating appropriate programme structures and governance to ensure timely and effective implementation.’ This will result in Ofgem remaining the programme sponsor and Elexon being the Senior Responsible Owner.
We welcome the clarity of this statement from Ofgem and will continue our history of working with industry to deliver this programme. We also recognise the importance of this programme and the significance of this responsibility.
MHHS is one of the biggest changes since retail market competition was introduced
Moving to Market-wide Half Hourly Settlement is one of the biggest changes to the energy market since competition was introduced in the 1990s. It enables innovation which can help transform the market, including support for more demand-side response, the next generation of ‘time of use’ retail tariffs, peer to peer trading and electric ‘vehicle to grid’ schemes. It will also be a major contributor to delivering Net Zero.
Our role as the programme manager will be to oversee and manage the implementation of MHHS on behalf of the industry. Ofgem is due to confirm how and when to implement MHHS this spring. We recognise the breadth of organisations involved in this programme and are committed to work collaboratively with all of them.
About the programme manager role
The programme manager role includes:
- Managing the transition to new systems and services
- Co-ordinating activity and communicating with stakeholders
- Monitoring and reporting the implementation progress of more than 180 organisations
MHHS supports Net Zero and is pivotal to developing the smarter energy system
Mark Bygraves, Elexon CEO said: “Market-wide Half Hourly Settlement is a major regulatory reform, which will help to deliver Net Zero and allow customers to play their part in meeting the Net Zero objective. Since 2017, Elexon’s Settlement experts have worked closely with Ofgem and the industry in developing the new Target Operating Model (TOM), which sets out all the industry services and settlement arrangements for MHHS.
“Our wealth of experience in managing Settlement and changes to the BSC puts us in good stead to step up and perform this role and we look forward to continuing to work with Ofgem and the industry to do so. We are developing a detailed strategy on how we would lead the programme during the design, build and test phases, which we will share in more detail with our customers and stakeholders soon.
“Moving to Market-wide Half Hourly Settlement is a ‘once in a generation’ change. We truly believe this transformation programme is pivotal to enabling the wider smart system and the consumer and societal benefits that will result from it.”
More about the MHHS programme manager role
- For more information on the programme manager role, please refer to Ofgem’s consultation document