We have published our 2024/2025 business plan, setting out how our work will contribute to and support progress to Net Zero.
We are proposing a budget of £115.9m for 2024/25 to deliver all of our work including completion of our Kinnect Programme, and progression of the Helix and Market-wide Half Hourly Settlement (MHHS) Programmes.
Our corporate strategy themes
We have structured our business plan in line with the five themes of our 2023 to 2025 corporate strategy:
- Delivering service excellence and customer value
- Delivering strategic programmes
- Transforming code management
- Strengthening industry engagement to drive more value in what we deliver
- Developing our people
Our strategy centres on our transforming energy code management, and cementing our position as a central energy markets leader by 2026. Our corporate purpose remains serving at the heart of the energy industry, driving a path to Net Zero. We also want to be recognised by customers and stakeholders for our excellence, innovation, speed and value for money.
See the business plan in full
Let us know your views on the plan
If you are a BSC Party or stakeholder, we want to hear your views on our plan. Please contact us at [email protected] by 9 February 2024.
Elexon’s Board will take feedback received into account when deciding whether to approve the plan. We will publish the final version in late March 2024.
Feedback on the business plan
Our work in 2024/25
- Completing the roll out of Elexon Kinnect (our cloud platform) in October 2024, including the switching off remaining legacy systems
- The Market-wide Half Hourly Settlement Programme completing the System Integration Test Phases for MHHS through to March 2025. This includes testing of the Helix services that Elexon has developed
- Preparing to take on operation of the Data Integration Platform (DIP), the next-generation messaging system which market participants will use for submitting half hourly data to Elexon for Settlement
- Completing work on the qualification and requalification process for around 200 market participants that are preparing for MHHS participation
- Continuing to assist Ofgem in the development of proposals for the demand flexibility market facilitator role. Ofgem published a consultation on 13 December
2023 on whether Elexon or the FSO should take on the role
- Developing Elexon Support our new Customer Service Management (CSM) and IT Service Management (ITSM) platform. We will launch Elexon Support in early 2024. It will make it easier to connect our customers with the expertise of Elexon colleagues
- Continuing to develop and implement BSC Modifications which support Net Zero. This includes implementation of P415 ‘Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties (VLPs)’ in November 2024, a landmark change which will allow Virtual Lead Parties to participate in the wholesale market
- Sharing findings throughout 2024/25 of our trials of early trials to examine whether use of AI on the digital BSC website can improve our service to Parties and offer good value for money
More detail on our 2024/25 budget
In addition to our proposed £115.9m budget for 2024.25, Elexon’s Board has also agreed to an increase in our 2023/24 budget (from £107.7m to £111.4m). This follows our consultation with BSC Parties in November 2023. Having considered responses from Parties, Elexon’s Board approved the increase in December 2023.
This adjustment will be reflected in monthly invoices to BSC Parties from January to March 2024.
The budget increases for both 2023/24 and 2024/2025 are predominantly driven by impact that the re-plan for the MHHS Programme is having on costs for our Helix Programme and the MHHS Programme. The re-plan was proposed by the industry and approved by Ofgem in June 2023. It sets a new implementation date for MHHS in December 2026.
We continue to keep cost increases for our ‘regular’ BSC activity down for Parties. In 2024/25 our regular activity costs will increase by £2.5m, with £2.0m of this attributable to cost indexation effects and the remaining £0.5m for known additions to support the DIP and development of our new CSM/ITSM platform.
We are also decreasing costs for our demand-led work by £7.3m in 2024/25, driven by completion of our Kinnect programme. The costs we pass on to BSC Parties for the Radio Teleswitch Service will also decrease by £0.9m in 2024/25.