We published the final version our 2022/23 business plan on 21 March, following approval by Elexon’s Board at its Meeting earlier in the month.
We thank the BSC Parties, and the BSC Panel who shared their views on the plan. We have updated the plan following their feedback.
The plan explains how we will continue to manage Settlement to our historic high standards, and make changes to the BSC which support Net Zero.
Priority areas of work for 2022/23
Our priorities for the coming year include:
- Delivering the Market-wide Half Hourly Settlement Programme Manager role which involves co-ordinating the activity of around 180 organisations across the sector to implement MHHS. The MHHS Programme role has been separated and ring-fenced from the rest of Elexon’s BSC activities
- Progressing a new multi-year programme to redevelop Elexon’s BSC Central Systems so that we can manage an exponential increase in the amount of half hourly data to be processed in Settlement once MHHS is introduced
- Continuing delivery of Elexon Kinnect, our cloud-native digital platform. Milestones for 2022/23 include completing the migration of the Settlement Administration Agent (which performs the daily Settlement Runs) and the Balancing Mechanism Reporting Service to the new platform
- Working to digitalise our Performance Assurance work to reduce the compliance burden on BSC Parties. We also implemented Modification P429 in the February 2022 BSC Release. P429 helps Suppliers by removing the majority of the Performance Assurance Reporting and Monitoring System serials.
- Working to implement two major BSC Modifications which support Net Zero (P375 and P376), and continuing to develop P415 with the industry. All of these changes support progress to Net Zero
- Delivering the first usable version of the digitalised BSC by April 2022 which will make it easier for Parties to get quicker answers to questions about the code
- Acting on feedback we received from our 2021 customer survey to further improve our services
Our budget for 2022/23
The Board approved the proposed total budget of £98.2m for 2022/23 compared with £83.7m in 2021/22. The main drivers of the increase are the spending required for the MHHS Programme (£19.5m in 2022/23) and the Helix Programme (£16.2m in 2022/23). We regard both of these programmes as mandatory, following Ofgem’s approval of MHHS implementation in April 2021.
We appreciate the challenging market conditions that our customers are facing. Ahead of preparing the plan we challenged ourselves to ensure that the work we are proposing to do is essential. We also considered ways in which we could be more agile in our delivery of it.
As a result, our budget for ‘regular business-as-usual activity’ including operational costs will decrease by £6.6m (nearly 10%) to £62.5m in 2022/23.
Download the full Business plan 2022/23 as a PDF or view the interactive document below.
You can also view our Business plan summary document, which outlines the priorities and budgets for 2022/2023
Cost benchmarking analysis
We commissioned independent analysis of Elexon’s costs compared with a set of similar organisations in the public and private sector. The analysis for this work was completed by consultants (Credera) based on the 12-month period ending Dec 2021.
Draft Business Plan webinar held on 14 January 2022
Watch the draft Business plan webinar with the Executive team held on 14 January 2022, the team provided a high level overview of each key work area and budgets associated.
Video length: 53 min, 43sec
Previous business plans
You can view PDF versions of the previous business plans or visit the corresponding interactive microsites.
BSC related priorities
More information about the priorities listed above can be found on the BSC website.
- Elexon Kinnect platform
- Market-wide Half Hourly Settlement Programme
- Modification P429 ‘Switching off Participant-Reported PARMS Serials’
- Modification P375 ‘Metering behind the Boundary Point’
- Modification P376 ‘Utilising a Baselining Methodology to set Physical Notifications’
- Modification P415 ‘Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties’
- Digitalisation of the BSC project
- Customer survey 2021