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Market-wide Half-Hourly Settlement

What is the Market-wide Half-Hourly Settlement (MHHS)?

Market-wide Half-Hourly Settlement (MHHS) is designed as an enabler of the move to a smarter, more flexible energy system. MHHS will implement a new Target Operating Model for the electricity market where site-specific, half-hourly energy consumption is recorded for all metering points.

This will act as an enabler for innovative products, services and tariffs and more efficient management of the electricity networks. Ofgem’s analysis predicts that MHHS will bring net benefits for consumers of between £1.6bn and £4.5bn over the period 2021-2045.

MHHS Project Explained

The Market-wide Half-Hourly Settlement (MHHS) is designed as an enabler of the move to a smarter, more flexible energy system. Jon Hawkins works in the Operations and Transformation Team at RECCo, as the Programme Lead for the Market-wide Half-Hourly Settlement Project. In this video, you will hear all about the programme and RECCo’s role in it.

Background

Ofgem launched the Electricity Settlement Reform Significant Code Review (SCR) in July 2017, to consider the opportunity presented by smart meters to make the settlement process more accurate and timely, and act as an enabler for new products and services. For example supporting use of electric vehicles or making use of smart appliances; these can deliver positive outcomes for consumers through lower bills, reduced environmental impacts, enhanced security of supply and a better quality of service.

In April 2021, Ofgem published their decision to introduce half-hourly settlement on a market-wide basis, and to implement the Target Operating Model recommended by the Design Working Group. This also set out that Elexon, as the Code Administrator of the Balancing and Settlement Code (BSC), would act as the Senior Responsible Owner (SRO) and Implementation Manager (IM) of the programme.

RECCo's Role

 RECCo is responsible for the ongoing effective and efficient governance of the retail energy market and management of REC Services. We are therefore responsible for ensuring that the MHHS requirements impacting the REC and REC Services are delivered and that the solutions will continue to deliver positive outcomes for consumers and competition in the market.

Objective and Scope

The scope of the project includes:  

  • Engagement with MHHS Programme governance to support design, build, test and implementation activities.  
  • Updates to the REC to reflect new MHHS systems and processes. 
  • Changes to REC Services to support the new MHHS Target Operating Model and end-to-end design. 
  • Updates to REC Operational Services and Operating Model to reflect updated new market arrangements. 
  • Engagement with REC Stakeholders.
 

Project Workstreams

The project will comprise of five workstreams:  

Workstream 1: REC Drafting 

Delivering required changes to the REC baseline through updated REC drafting and consultation with stakeholders and MHHS governance. Multiple versions of REC drafting will need to be produced and maintained to align with MHHS transition milestones. 

Workstream 2: Service Provider Delivery 

Delivering required changes to REC Services including the Central Switching Service (CSS), Electricity Enquiry Service (EES), Electricity Retail Data Service (ERDS) and Secure Data Exchange Service (SDES); Ensuring delivery in accordance with the programme timetable and testing/assurance requirements. 

Workstream 3: Operational Readiness 

Ensuring new and updated operational processes are in place and working to support updated REC Baseline(s) and the RECCo Operating Model supports this. This includes any required updates to:  

  • Market Entry/Exit 
  • Entry Assessment and Qualification 
  • Party Management 
  • Committee Management 
  • Change Management 
  • Performance Assurance 
  • Data Governance 

Workstream 4: Programme Engagement 

The MHHS Programme is a design-led programme, and requires programme participants (such as RECCo) to proactively engage in programme governance to interact with the MHHS design, MHHS Implementation Plan, testing requirements and change control. Engagement with the programme will also be required to escalated any risks, issues, assumptions and dependencies impacting RECCo and/or the retail energy market so this is formally recorded and considered by the programme.   

Workstream 5: Stakeholder Engagement 

A programme of stakeholder engagement will be required throughout the project, providing updates to REC stakeholders on the progress of the project and eventually to explain and raise awareness of changes to the REC arrangements as part of MHHS. 

Project Updates - Progress

Stay informed on the progress of the MHHS Programme with our Plan on a Page (PoaP). It includes current workstreams and timelines.

Contact - Updates

We will be making updates to this page as the project progresses, as well as providing monthly updates via the REC newsletter.  

Any comments or question can be emailed to the Project Lead, Jonathan Hawkins.

Our Q&A log is coming soon here.
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