On 30 March 2023, we published the final version of 2023/24 business plan, which explains how we will provide service excellence and customer value, while delivering the BSC rule changes needed to help support Net Zero.
Thank you to all BSC Parties who responded with feedback on the initial version of the plan. We have updated the document following this.
The updates include:
- Adding a graphic summarising the benefits of the Kinnect platform
- Adding more detail into the ‘developing our people’ section of the plan
- Adding a section about Credit Cover in the BSC
- Explaining how independent oversight for Elexon’s strategic programmes is provided
- Providing some additional assurance on costs for the Market-wide Half Hourly Settlement (MHHS) implementation programme
- Clarifying that expected reductions in headcount for Elexon are for non-industry specific roles such as technology and project management roles
- Correcting some rounding errors on the increase in costs relating to the MHHS Programme as stated in the document. The cost increase for 2023/24 is £0.3m compared to 2022/23
- Correcting an error in table 3.1 on page 38 on fixed fees for SVA metering systems and the MHHS Monthly Implementation charge.
Business plan in full
Webinar about the Business Plan
Our Executive team hosted a webinar on 18 January 2023.
Responses to the Business Plan
Summary of the Business Plan
We have structured our business plan around the five themes of the proposed Elexon strategy for 2023 to 2025. The new strategy seeks to build on everything that Elexon does well, as an independent, reliable market expert, while giving the organisation a sharper focus on delivering value as a high-performing code manager.
We are committed to ensuring value for money for our services, as Elexon needs to be efficient in both operation and delivery, as part of the vital role that we play in the industry.
Five themes for the new proposed Elexon strategy
- Delivering service excellence and customer value
- Delivering strategic programmes
- Transforming BSC code management
- Strengthening industry engagement and relationships
- Developing our people
Key takeaways for the 2023/24 business plan
- We have sought to keep our costs in 2023/24 as low as possible recognising that BSC Parties face significant challenges.
- We are proposing a budget of £107.7m for 2023/24 to deliver all Elexon activity including that for the Kinnect Programme, Helix Programme and the MHHS Programme. This is an increase of £9.5m (9.7%) against the current year’s budget of £98.2m.
- We are making efficiency savings across the business of £1.3m to help offset some of these increases.
- We have reduced our controllable costs by £1.0m (2.5%) against the 2022/23 budget and this in turn feeds into 2023/24.
- During 2023/24 we expect to lead a programme of work alongside industry and Ofgem to prepare Elexon for a change of ownership model resulting from the move to a Future System Operator.
- We will be preparing to take on a more proactive role in code management (subject to Ofgem announcing next steps on code reforms).
- We will continue to fulfil the MHHS Programme Manager role. We plan to deliver the first tranches of meters being migrated onto the new MHHS systems in spring 2025 (subject to industry agreement).
- We will continue to work with industry to develop Modifications and code changes which support MHHS implementation and Net Zero.
- By October 2024 we will have completed the roll-out of Elexon Kinnect, our cloud platform, and we will have decommissioned our legacy datacentre infrastructure.
- We will complete the design, build and test phase of the new Helix Programme solutions so that BSC systems can manage an exponential increase in the amount of half hourly data we must process when MHHS goes live.