Scottish Power has proposed a modification to the Balancing and Settlement Code (BSC) that would make Elexon the manager for Ofgem’s mandatory half-hourly settlement programme.
As the BSC will be the code most affected by the changes, the company said it would be appropriate for its administrator to oversee the programme.
In a consultation on its draft impact assessment in June, Ofgem proposed to retain overall accountability for the programme, but also identified the need for a manager to implement the delivery plan, test and roll out the new central settlement system and monitor the progress of parties.
Ofgem said it could take responsibility for some or all of these roles or alternatively they could be fulfilled by an industry body such as a code administrator or a third party not currently involved in the programme. Regardless of the outcome of this decision, the regulator said the function should be paid for by BSC parties under the existing funding structure.
The code modification P413 put forward by Scottish Power would require that the programme manager role be fulfilled by Elexon.
In the proposal document, the energy company said Elexon is the “entity with greatest subject matter-expertise” and cited its technical leadership in the development of the target operating model for the programme. It praised its “proven track record” in supporting Ofgem’s significant code review on mandatory half-hourly settlement, and more generally, in delivering BSC and cross-code changes “to time and quality”.
Scottish Power said it would also mean handing the role to a non-for-profit company “whose sole purpose is to provide services to the benefit of BSC parties and the energy market.”
“If the BSC is not amended to require Elexon to perform this function, there is a risk that this results in longer implementation timescales, higher costs for the industry and a longer period to see the benefits outlined in Ofgem’s draft impact assessment consultation.”
It said Elexon should be accountable to Ofgem and that the regulator should retain the right to remove some or all its functions as programme manager in the event of poor performance.
Elexon chief executive Mark Bygraves said: “If Ofgem concludes that an organisation other than Ofgem should provide this very important central programme management role, then we believe we have the technical expertise in settlement and experience of implementing large industry programmes to do the best job for industry.”
The regulator currently expects to make a final decision on the implementation of mandatory half-hourly settlement in spring 2021.