P423 ‘Market-wide Half Hourly Settlement (MHHS) Implementation and Governance Arrangements’

Authority Decision

The Authority approved P423 on 30 September 2021 and was implemented on 7 October 2021.

Panel Recommendations

All recommendations for the P423 Draft Authority Led SCR Modification Report were unanimously approved by the BSC Panel at it’s meeting on 16 September 2021.

Subsequently, Ofgem recommended some minor, non-material, amendments to the approved legal text which were put to another vote to Panel members on 20 September 2021. Of the quorate number of Panel Members that responded, all agreed with recommendations to approve the text.  These amendments were submitted to Ofgem as part of the Final Authority Led SCR Modification Report sent on 20 September 2021.

Consultation

We received five responses to the P423 Consultation with all respondents agreeing with the intent of the Modification.  In addition to these responses we also received a letter from the MHHS Programme which resulted in two clarification amendments to the legal text instructed by Ofgem as the proposer and owner of the legal text.

Following the Panel’s recommendation at its meeting on 19 August 2021, Elexon circulated the P423 Authority Led SCR Modification Consultation for a 10WD consultation period on 24 August 2021.

Elexon presented the Initial Authority Led SCR Modification Report to the Panel at its meeting on 19 August. The Panel initially and unanimously recommended approval.

Ofgem raised P423 on 16 August 2021. This is an Authority Led SCR Modification and as such will not follow the standard Modification Procedures. Instead it will follow the timetable set by the Authority and the Authority Led SCR Modification Proposal procedure detailed in BSC Section F5.3A.

MHHS will utilise the potential of smart meters to allow accurate consumption by smaller users to be measured and updated in real time, which will make it possible for almost all electricity consumption to be measured as close to real time as possible, and for all billing to be settled every half hour.

This Modification is to ensure the BSC reflects implementation and governance arrangements that will allow Elexon to effectively manage and oversee the MHHS programme and require Elexon to undertake that programme management in a transparent, consultative and unbiased way. It will also require MHHS programme parties to develop and deliver the changes to their systems and business processes to ensure timely and cost effective implementation and to cooperate with the programme governance and processes, including testing, qualification and migration.