DWG consultation reconfirms its preferred Target Operating Model

The ELEXON-led Design Working Group (DWG) ran a consultation on its preferred Target Operating Model (TOM) for Market-wide Half Hourly Settlement (MHHS) during February and March. We received 23 public responses, which the DWG discussed at its 26 March meeting.

ELEXON and the DWG thank all respondents for taking the time to provide views. The TOM is one of the key outputs of Ofgem’s Significant Code Review (SCR) on Electricity Settlement Reform.

Outcome of the consultation

The DWG is encouraged that the consultation responses validate the general approach and coverage of its TOM design, while mirroring the DWG’s own majority / minority views on the overall preferred TOM. The DWG has agreed that no fundamental changes are therefore required to the TOM.

Summary of responses

You can find a more detailed summary of the DWG’s discussion of the responses from the following:

Next steps

The responses raise a variety of points and suggestions regarding the transition to the TOM, including on the importance of a managed transition to the reduced Settlement timetable.

The DWG will consider these as it develops its transition approach over the next few months.

The DWG notes that some responses also comment on areas that fall outside its remit, but which Ofgem will consider under its wider Significant Code Review.

The DWG looks forward to continuing to engage with you later this summer as its work progresses.

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