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ELEXON proposed to lead development of Target Operating Model for Ofgem

Posted: 25 July 2017

On 24 July 2017, Ofgem released its Significant Code Review Launch Statement for Electricity Settlement Reform. The SCR Launch Statement proposes that ELEXON lead the design work to develop the Target Operating Model. We are pleased that Ofgem has taken this approach, following our offer to lead the design work using an expert group. Ofgem has invited expressions of interest from industry parties to take part in the ELEXON led Design Working Group. The working group will consider the detailed design needs to deliver effective, efficient and enduring mandatory Half-Hourly Settlement arrangements.

The SCR Launch Statement sets out Ofgem’s proposed model for the Design Working Group to develop the Target Operating Model and the governance structure. Ofgem has proposed that, as code administrator for the Balancing and Settlement Code and due to the previous work we led on in the area of half-hourly settlement, ELEXON are best placed to lead the work and draw on industry expertise through the working group and wider engagement.

ELEXON Chief Executive, Mark Bygraves, has said ‘I’m delighted that Ofgem has recognised our expertise in half-hourly settlements and with our independent market expertise, we look forward to working with industry experts in the Design Working Group and more widely to develop and deliver a recommended Target Operating Model to Ofgem for approval. Our subject matter experts are well placed to benefit this Significant Code Review.’

Ofgem is seeking feedback on both the proposed approach and expressions of interest for the Design Working Group by 1 September 2017.