Ofgem response to the request for an extension to the Implementation Date of Balancing and Settlement Code Modification P272
Decision
Publication date
On 20 March 2015, Elexon wrote to us on behalf of the BSC Panel to request, in accordance with Section F, Paragraph 2.11.8, that we approve a delay to the implementation of BSC Modification P272 by 12 months. This letter sets out our response to this request.
P272 mandates that consumers in Profile Classes 5-8 with advanced meters are settled half-hourly (HH) from 1 April 2016. Ofgem, government and the Competition and Markets Authority have all recognised the importance of HH settlement in improving the functioning of the retail market.
While we share some of the concerns raised by the BSC Panel regarding the risks to consumers associated with the current Implementation Date, we have decided not to approve its extension request. We are concerned that, on its own, an extension to the deadline will not address these risks. It could also reduce the incentives on suppliers to start moving their PCs 5-8 customers to HH settlement as soon as possible.
We would be open to consideration of alternative solutions to address the risks to consumers. One example is introducing a mandatory start date for migration alongside a later Implementation Date for P272. Any solution could also consider a reporting requirement to monitor transition.
We encourage the industry to take steps to consider whether a more robust solution is available that fully addresses the risks to consumers by changing how all sites in Profile Classes 5-8 with advanced meters are moved to HH settlement under P272, and bring forward any modification proposals necessary.