Settlement reform update

Publication date
7th September 2018
Information type
Policy area

Settlement reform highlights

Business Case and Impact Assessment: We have published our Outline Business Case (OBC) on 17 August 2018.

Stakeholder Workshop: We are holding a stakeholder workshop on 1 October 2018 in which emerging findings from our access to half-hourly data consultation will be discussed. 

Target Operating Model (TOM)

The Design Working Group (DWG) is continuing with stage two of the Target Operating Model (TOM) design work. For stage two, the DWG have formed four workgroups to develop detailed service requirements for the skeleton TOMs. The workgroups are aiming to have a first draft of the detailed service requirements ready in time to undertake a gap analysis in September. The draft detailed service requirements will then be refined and considered by both the DWG and Design Advisory Board between September and November.

We have also been in reviewing the TOM forward work plan with ELEXON, and an updated copy will available on the BSC website shortly. One key change is an additional consultation on the TOM design work once a preferred TOM option has been identified by the DWG. This consultation will be undertaken on the BSC website and ensure that stakeholders can provide feedback on the preferred TOM option identified by the DWG. 

Key links

Ofgem, Design Advisory Board webpage

ELEXON, Design Working Group webpage

Business Case

We have published the Outline Business Case (OBC) on 17 August 2018. The OBC presents the results of a draft economic assessment of the impact of market-wide settlement reform. It also explores the project’s strategic interactions in further detail and presents our further thinking on how to ensure key players can manage and deliver the reforms successfully. The draft assessment indicates substantial potential benefits, suggesting that our decision on the project should centre on when and how, rather than whether, market-wide settlement reform should be introduced. 

This is the second of three iterations of the Business Case, which we will use to support our final decision on market-wide settlement reform and set out the arrangements for implementation. We are developing the Business Case over time, leading up to our decision on market-wide settlement reform by the second half of 2019.

We are seeking feedback from stakeholders on two specific points discussed in this document: half-hourly export settlement (Chapter 2) and commercial drivers on the industry to deliver market-wide settlement reform (Chapter 4). The questions are set out in the relevant chapter. We also welcome any further comments or feedback on this Outline Business Case.

Key links

Market-wide Settlement Reform: Outline Business Case 

Consumer Issues

Access to data 

In July we published our stakeholder consultation on access to half-hourly data for settlement purposes. We will be holding a stakeholder workshop on 1 October 2018 at ELEXON (350 Euston Road, London NW1 3AW) from 10:30-4 where we will discuss our emerging findings from our consultation responses. Space is limited so we will only be able to accommodate one person per organisation. If demand exceeds the available space, we will take account of the order in which we receive responses and also of the need to have a balanced range of stakeholders from different types of organisation.

If you would like to attend please email halfhourlysettlement@ofgem.gov.uk and let us know any dietary requirements. 

Key links

Access To half-hourly data consultation 

Looking ahead

  • 18/09/2018 10:00 – 4pm: Design Working group meeting 11 
  • 25/09/2018 10:00 – 4pm: Design Advisory Board meeting 5 
  • 01/10/2018 10:30 - 4pm: Stakeholder Workshop  

Your feedback and future updates

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