Market-wide Half-Hourly Settlement (MHHS) reform will see the electricity industry working together in a significant move forward in how electricity is used and accounted for. The MHHS Programme is an industry first, in that Ofgem has placed responsibility on the industry to deliver the Programme and made Elexon the Senior Responsible Owner (SRO) of the Programme.
The outcome of MHHS will be a faster, more accurate settlement process for all market participants, introducing site specific reconciliation using half-hourly meter readings. Elexon is a key organisation at the centre of the wholesale electricity market and is an expert in balancing and settlement processes. Elexon is proud to lead the MHHS Programme, which will be a key enabler to a smarter, more flexible energy system and will be vital in supporting flexible solutions to enable the nation’s transition to Net Zero.
Recognising industry concerns about potential conflict of interest, a Separation Solution has been established to clearly detach the role of Elexon as a programme participant, delivering the central systems, from its programme management role. The Separation Solution seeks to minimise and manage the potential for conflicts of interest between these two roles. The Elexon Board, Ofgem and an Independent Programme Assurance (IPA) function will monitor the separation requirements.
The whole approach for the MHHS Programme paves the way for new ways of working for the electricity industry. Ofgem consider the MHHS Programme as a first in defining the ‘blueprint’ for future large change programmes within the energy industry.
We look forward to working in a collaborative and transparent way with the energy industry to develop and deliver the MHHS Programme.