Future enabling the Target Operating Model for market-wide settlement reform
Correspondence and other
Publication date
Industry sector
Supply and Retail Market
The aim of market-wide settlement reform is to enable the move to a smarter, more flexible energy system, and to empower consumers to take an active role in the energy system transition as the sector decarbonises. One of the key products of the Settlement Reform Significant Code Review is the development of a Target Operating Model (TOM) to deliver market-wide settlement reform.
The TOM is being developed at a time of significant change and transition in the energy market. One of the key challenges of the design work will be to ensure that the new TOM settlement arrangements facilitate innovation by supporting the entry of new business models and technologies into the energy market.
This working paper sets out our considerations to date on the potential future changes which the TOM design work will need to take into account of and potential features or characteristics which should be incorporated into the TOM to address them.
While not a formal consultation, we would be interested in stakeholder views on the issues discussed in this working paper and have included some areas of feedback for stakeholders to comment on. Whilst we would welcome responses at any point, it would be most helpful to have these submitted to us by the 16 August 2019. Please contact us at: halfhourlysettlement@ofgem.gov.uk. We would be happy to arrange a meeting or teleconference, or to take comments by e-mail.