On Thursday 14 July, Elexon hosted its annual meeting and seminar. For the first time since 2019, the meeting was held in our office although Stakeholders were also able to join online.
Thursday’s meeting was the first BSC seminar for Elexon’s new Chief Executive Simon McCalla. It was also the last seminar for Michael Gibbons, Chair of the Elexon’s Board and the BSC Panel.
The seminar guest speakers were:
- Teresa Camey, the Deputy Director of Electricity Systems for the Department for Business, Energy and Industrial Strategy (BEIS)
- Richard Smith, Energy Systems Management and Security Director, Ofgem
Simon McCalla presented on Elexon’s achievements during 2021/2022 and Angela Love, Elexon’s Director for Future Markets and Engagement, and MHHS Programme Executive Sponsor, outlined the progress of the programme over the past year, and the upcoming milestones.
We have produced a video showing the key points highlighted by our speakers at the BSC seminar.
Teresa Camey presentation
Future System Operator could be in place in 2024
Teresa Camey presented on managing the challenge to GB’s energy system of the ongoing war in Ukraine and the need to diversify our energy sources while maintaining affordability. She said that the new Future System Operator is expected to be in place by (or in) 2024, however this would depend on the passage of legislation including the new Energy Security Bill. The FSO is expected to play an important role in system planning and supporting moves to Net Zero.
Future ownership of Elexon
BEIS’ consultation on the future ownership of Elexon was published on the day of the seminar. Teresa talked about the two ownership models which are being considered:
- Public ownership, or
- Private ownership by industry (BEIS’ preferred option)
Elexon acts independently and for the benefit of all companies that operate in the wholesale electricity market. We believe that private, federated ownership by industry is the best outcome to ensure our continued accountability to industry. We will be engaging with BSC Parties and other stakeholders during the consultation process.
The consultation is due to close on 22 September, with a decision being made by the end of the year. We encourage stakeholders to respond to the consultation.
Next steps on reforming energy codes
In April, BEIS and Ofgem confirmed that code administrators and code panels will be replaced by arrangements where Ofgem licenses code managers. Teresa said that this autumn, Ofgem will set out views on how reforms to support this can be implemented.
Richard Smith / Ofgem’s presentation
Richard Smith discussed what Ofgem is doing to stabilise energy markets and ensure security of supply. He said that to reduce the risk of supplier failure, and ensure that inappropriate risk is not passed on to consumers, Ofgem is putting in place new retail market controls, focussed on financial resilience.
The results of the ESO’s independent review of rising costs for balancing the system, together with Ofgem analysis of this issue, both showed that there was no clear evidence of behaviour that is inconsistent with market rules.
However, Richard said that Ofgem is concerned about behaviours of some generators when margins are tight. He told the audience that Ofgem was ready to explore “near term interventions” in energy markets if they were required.
Simon McCalla presentation
Simon McCalla presented on Elexon’s achievements during 2021/2022 which included:
- The launch of the digital BSC site and the Elexon Kinnect Insights Solution
- The launch of the Helix Programme to overhaul Elexon’s internal BSC systems in preparation for Market-wide Half Hourly Settlement (MHHS)
- Continuing to work with industry to develop and implement changes to BSC rules to support Net Zero which include P375 ‘Settlement of Secondary BM Units using metering behind the site Boundary Point’ (implemented on 30 June).
You can find more highlights of our work in:
- Annual Report 2021/2022
- Business plan 2022/2023
- Financial statements 2021/2022 – also includes detailed reporting on spending against budget
Video of Simon’s presentation on Elexon’s 2021/2022 performance
Angela Love presentation
Update on the MHHS Programme
Angela Love, Elexon’s Director for Future Markets and Engagement, and MHHS Programme Executive Sponsor, outlined the progress of the programme over the past year, and the upcoming milestones.
- Core MHHS Detailed Design expected to be completed and signed off by the Design Advisory Group in October 2022
- The developer of the Data Integration Platform (to be used by suppliers to share MHHS data with Ofgem) starting work on creating the platform in October 2022
- All programme participants to be fully mobilised and ready to commence their design, build and test phase by October 2022
The MHHS Programme is separate and ring-fenced from the rest of Elexon’s activities. For more information on the Programme visit the website
Elexon Board Directors election
At the meeting Category A or ZC Authorised Signatories from BSC Party Trading Groups voted on whether to elect, or re-elect Directors of Elexon’s Board.