Ofgem’s 2021/22 Forward Work Programme set out five strategic priorities, including to deliver full chain flexibility in how we generate, use and store energy. One of the key activities within that strategic priority is to implement MHHS. This will be a vital enabler of the flexibility to support this country’s transition to net zero.
On 20 April 2021, we published our decision to implement Market-wide Half-Hourly Settlement (MHHS), and stated that Elexon will be the Senior Responsible Owner (SRO) for MHHS implementation. We have since consulted on governance and implementation proposals to further support the industry-led delivery of MHHS and the Decision document has been published.
We have set an expectation that the industry will implement MHHS over a period of four years and six months. We believe that this timeframe strikes a balance between securing the benefits of MHHS as soon as possible whilst recognising the complexity of the changes involved. We will also ensure that there are strong legal and regulatory incentives on the industry to implement MHHS efficiently and effectively.
Ofgem will remain the Sponsor for MHHS Implementation and we have set out proposed thresholds related to scope, outcomes, cost, timing, competition, consumers’ interests and conflict of interest that would require Ofgem intervention in the decision making for the programme.
Delivering MHHS is an essential step on our path to net zero and we look forward to working with industry to make this important change a reality through timely and effective implementation.
Ofgem, Programme Sponsor