Strategic priorities

Strategic priorities
for 2020/21

In 2020/21, our focus will remain on our existing strategic priorities: Quality Delivery, Innovation, Engagement, Customer Centric, Simplification and Consolidation, Digital Platform and Talented People. We will strive to continue delivering the high levels of service and we will work smarter to help our customers, so that we perform above their expectations and those of our other stakeholders.

We will provide a full overview of the 2019/20 activities in our Annual BSC Report, to be published in June 2020. Meanwhile, the following pages provide some highlights and key achievements for 2019/20 to date and set out our plans for 2020/2021.

 

Many initiatives cut across strategic priorities. This is especially true where in our capacity as a trusted code manager we provide key central systems and data platforms. It is also evident where we lead (where appropriate) and contribute to deliver industry-wide initiatives, such as:

Energy industry data
We will continue to play a key role in implementing the recommendations of the Energy Data Taskforce, as we have done since its launch in October 2018, sharing our knowledge, stimulating debate around open data, and embedding open data principles into our new platforms.

Energy industry codes reform
We will continue to offer our expertise and support to BEIS and Ofgem as they conclude their review of the energy codes and we will seek ways to make the industry rules easier for our customers and new entrants to understand.

Enabling storage
By building on several BSC modifications, which have already been implemented, we will continue to lead the industry in developing further modifications to enable extended deployment of energy storage. We will also maintain our contribution to changes/modifications under other codes through our participation in workgroups and Panels.

Supporting new business models
The Market-wide Half-Hourly Settlement Target Operating Model is one of the pre-requisites to facilitating new product offerings to consumers with smart meters; in particular, time-of-use tariffs. Therefore, we continue to assist Ofgem in their programme of work in this area.

Electric Vehicle rollout and integration
We contribute to the EV Energy Taskforce workgroups, and will continue to work with the Office for Low Emission Vehicles and industry, to ensure the efficient integration of EVs into the grid. This includes working to establish common smart charging arrangements that will support EV users and charging operators in providing services to the wider energy market.

We will continue to play a key role in implementing the recommendations of the Energy Data Taskforce

Highlights from 2019/20

Actively managing our services to ensure reliable, economic and efficient delivery.

Operational Support Managers and other members of Elexon are always helpful and responsive, I have therefore encouraged colleagues to engage directly with them, and I have had positive feedback

01 Data publication
As a primary source of operational data on GB’s Electricity Balancing and Settlement arrangements, the Balancing Mechanism Reporting Service (BMRS) has continued to see a strong increase in usage due to the extensive set of data it has and the flexibility and versatility of receiving information from it. (See Figure 02)

Figure 02

Stats on the increase
in BMRS usage
Most popular APIs
  • Physical BMU data
  • REMIT
  • Rolling system frequency
  • Bid offer level data
  • Rolling system demand
Average daily users
1900
The service availability remains high above 99% and supported 24/7
Chart by Visualizer

02 Performance Assurance Framework (PAF) Programme

To summarise the previous years’ work under the programme – we consolidated the 220 risks of inaccurate Settlement into 34 risk categories, making it easier for companies to identify risks and take action to mitigate them. We supplemented each of those 34 risks with additional information such as a financial impact forecast, key root causes and affected parties. We also produced a digital risk visualisation tool.

This is an interactive set of diagrams breaking down the risks by the relevant Settlement processes, so that they are understood more easily. Our new Settlement risk management framework is:

  • Effective at minimising the errors in Settlement
  • Flexible and applicable to different situations
  • Easy to understand

We believe that the new Risk Evaluation Methodology allows for a more dynamic risk management process, which is supported by the changes made to the wider Performance Assurance Framework (PAF) governance documentation

Our focus for 2020/2021

As well as business as usual during 2020/21, we will look for further opportunities to streamline and simplify what we do and how we interact with you, our customers.

01 Business As Usual (BAU)
During 2020/21 we will continue our day-to-day focus to deliver BSC obligations to the highest standard and accommodate the changing needs of the ever-increasing and evolving range of BSC Parties. Figure 04 below shows the increasing engagement we have with the industry and the growing numbers of customers we serve. We have a culture of serving the industry in a cost-effective way. In our 2019 customer satisfaction survey, we achieved our highest ever value for money rating.

02 Delivering Change
Further to the improvements implemented to the BSC in 2019/20, we will work with the industry to assess and plan further improvements, some of which are outlined in the Policy View: A Faster, More Consistent Process for Changing Energy Codes’. Following a debate with the industry in 2020/21 we will assess the need to raise new BSC modifications to simplify and streamline your experience of dealing with us.

03 Open Data and reporting
In the data-centric world, access to open and transparent data is critical for encouraging innovation, which benefits companies and consumers.

We are working to enhance and evolve our data governance framework. This includes our data analytics capabilities, applying new data standards, policies and controls. Our aim is to better align our data management activities with current regulatory and governance principles and deliver the Energy Data Taskforce recommendations.

Figure 04

Our Engagement

Balancing Mechanism Reporting Service (BMRS)
We have set up a new BMRS Change Board to work with both industry and nonindustry experts on the long-term scope and strategy for the BMRS. This includes considering how the BMRS can support provision of open data.

Market Reports / Elexon Insights
During 2019, more than 8,800 unique visitors viewed our market reports and insights. We will keep analysing the data we hold to generate valuable, readily available, interactive insight articles that could inform your decisions and aid your understanding of the market.

Licensing / open data
Elexon is an advocate of open data culture and practices. We are committed to making further progress with open data in 2020/21, expanding upon the suite of available data sets under our open data licence.

In most cases, our data is freely available to use under an open licence. However, sometimes we are required to charge for providing certain datasets and place some restrictions on how that data can be used. In 2020/21, we will remove any remaining barriers for our customers in accessing and understanding the information that we provide.

I’ve seen the Elexon Insights articles you posted on your website a few days ago which provide great summaries and useful resources, so thanks for producing.

04 Performance Assurance Framework (PAF) Review
We know that an effective and efficient performance assurance process is important to you. Our 2019 customer satisfaction survey showed increased scores for our performance assurance activities. Elexon through the PAF Review has been proposing improvements to the framework to achieve this goal. Figure 05 shows more detail on the PAF and the implementation timeline. Our recommendations on the assurance processes are being deployed into routine operations while we work on the remaining two work streams:

Review of the Performance Assurance Techniques (PATs)
We are producing recommendations to enhance the risk mitigation ‘toolkit’ of efficient and cost effective assurance techniques. Our goal is to ensure that there are sufficient preventative elements, robust and flexible audits, performance monitoring procedures and clear routes for escalation.

Data provision
We are assessing how we can make better use of existing data items. We are considering the viability of alternative methods of data provision that place less burden on you to provide data and support more accurate risk appraisal.

Figure 05

PAF Review and
implementation timeline

05 European developments
We will continue to monitor and work with other code administrators to ensure an effective relationship and proportionate representation relative to the Brexit position.

Throughout the year, we will implement, where necessary, any further changes needed due to European developments like the European Electricity Balancing Guideline (EB GL), harmonisation of Imbalance Settlement and Project MARI (Manually Activated Reserves Initiative) and the Clean Energy Package.

I found out about information I didn’t know anything about or where to find it and I was able to feed in to discussion about how these things could be improved to be of benefit within my organisation

Figure 06

European Developments:
Future impact of key EU legislation

Highlights from 2019/20

Enhancing and evolving our services to support industry changes and development of the energy market.

01 Wider Access to the Balancing Mechanism (BM)
Working with National Grid Electricity System Operator, Ofgem and the industry, we developed the solution for Wider Access to the BM for independent aggregators. This enables flexibility service providers 0to participate in the BM in their own right as a new type of BSC party (a Virtual Lead Party). Ofgem approved P344 in August 2019, concluding the two-year development phase. From December 2019, the BM was open to independent aggregators, which helped create a wider pool for provision of demand side response.

02 Market-Wide Half-Hourly Settlement (MHHS)
Working with Ofgem and the industry, we completed the design work on the MHHS Target Operating Model (TOM) and transition approach in August 2019 – to which Ofgem subsequently gave its preliminary approval in October 2019. This represented the culmination of two years’ collaboration with Ofgem, the Design Working Group and wider industry on this phase of work.

03 Enabling flexibility services and distribution network operator to distribution system operator transition
In November 2019, we published our Policy View: Setting up Electricity Flexibility Platforms. We proposed that nationwide ‘flexibility markets’ could be set up to operate in a similar way to the existing wholesale electricity market, where buyers and sellers can trade electricity or spare capacity at prices set by the market. We proposed action from the DNOs and Ofgem to bring this about and pledged our support. Flexibility platforms will facilitate more efficient network usage and fully realise the value of assets connected to the system. Figure 07 overleaf summarises our proposals.

Our focus is to provide more opportunities for demand-side response, to realise the benefits of smart meters, and achieve more efficient use of the electricity networks.

We proposed that nationwide ‘flexibility markets’ could be set up to operate in a similar way to the existing wholesale electricity marketElexon Policy View Setting up Electricity
Flexibility Platforms

Figure 07

Policy View:
Flexibility Platforms

We see the BSC and the Elexon team as enablers to innovation in services and business models that will bring benefits to our customers, end consumers and society as a whole. Central market arrangements and systems will have a vital role to play in progress towards the net zero emissions target.

01 Modification P344 – Project TERRE

Enabling BSC Parties to start trading in the European
Market During 2020 we will be deploying the changes required for P344 Project TERRE (Trans European Replacement Reserves Exchange), which will enable GB market participants to trade in the European electricity markets.

We began work on implementing Project MARI (Manually Activated Reserves Initiative) in 2019/20. MARI is the project name for the second of the Electricity Balancing Guideline (EB GL) balancing products to be introduced to the GB market. While it may be similar to Project TERRE initially, this will be an entirely new pan-European balancing product. We will work with National Grid ESO to ensure future BSC modifications to enact MARI and meet BSC Parties’ needs. We plan to start working with industry through the Workgroup process in spring 2020 once National Grid ESO completes its initial preparations.

02 Leadership on future markets and settlement design

Market-wide Half-Hourly Settlement (MHHS)
We will continue to lead on Market-wide Half-Hourly Settlement. This follows Ofgem’s preliminary approval of the Target Operating Model (TOM) design, delivered by the Elexon-led Design Working Group (DWG). In November 2019, Ofgem launched the next phase for developing the industry code changes and system architecture needed to implement the TOM. This includes establishing two new industry working groups: the Code Change and Development Group and the Architecture Working Group. Elexon will chair these groups, provide technical leadership and work closely with Ofgem, industry and other codes throughout 2020/21.

03 Enabling new paradigms in the energy sector

Multiple Providers through Meter Splitting (P379)
BSC Modification P379 will enable multiple suppliers to provide energy to the same consumer via a single meter (for example, where a customer has a domestic supplier, but has electricity for their electric vehicle provided as part of the EV leasing arrangements). The Modification was raised following an Elexon Policy View, where we articulated how this could be enabled. The Modification will facilitate non-traditional business models and innovation through the simplification of current meter splitting arrangements and the creation of a new Party Agent role, the Customer Notification Agent (CNA). During 2020/21, we will continue guiding the P379 workgroup in exploring the issue and developing the solution.

‘Behind the meter’ resources (P375)
The high proportion of renewable generation and volatile changes in demand patterns increase the need for the electricity system to be flexible. BSC Modification P375 proposes to settle Secondary Balancing Mechanism Units using metering equipment behind the defined Boundary Point for Balancing Services. This is instead of the current practice of using metering equipment at the Boundary Point.

Enabling ‘behind the meter’ equipment to input data into Settlement is a pre-requisite for a number of future innovative business models and charging structures, which require more granular data. P375 facilitates this by creating a new register of asset meters, associated code of compliance, data flows, and a new Settlement process.

This will allow balancing-related services on site to be separated from imbalancerelated activities, more accurately reflecting the balancing-energy volumes provided by the Balancing Service Provider. During 2020/21, we will support and guide the P375 workgroup summarising the proposed solution into an assessment report at the end of the process.

Electricity market sandbox (P362)
As the BSC sandbox begins operations, we will improve market access for innovators by demonstrating changes on a small scale and using the learnings to inform future BSC modifications.

04 DNO to DSO Transition

Building on our Elexon Policy View: Setting up Electricity Flexibility Platforms, we will work together with Ofgem, DNOs, Energy Networks Association (ENA) Open Networks project and any interested parties to further develop our initial ideas on achieving the DNO to DSO transition, and enabling local energy markets.

We will be working with winners of the BEIS FleX competition to trial flexibility markets during 2020/21. We will be offering support on how these trial projects can interact with Settlement and the central market arrangements.

Simplification & consolidation

Reducing complexity and fragmentation

01 Streamlining the BSC

Building on our suggestions to simplify the content of the code, we implemented eight changes to streamline the BSC in June 2019. They included among others, Modification P364, which speeds up registration for ‘non-standard’ balancing mechanism units; P372, which streamlines the process for making changes to data published in the Balancing Mechanism Reporting Service (BMRS) and Modification P394 which removes redundant provisions from the BSC.

02 Policy View on reforming codes

In May 2019, we published a Policy View on the Energy Codes Review, to stimulate debate and put forward options for how the 11 existing gas and electricity codes could be consolidated and simplified into three codes covering the retail, wholesale and settlement and networks sectors. We have been feeding our views into BEIS and Ofgem as part of their review of the codes.

03 Cornwall Insight research on code reforms

In July 2019, we published a study that we commissioned from Cornwall Insight, which analysed the 11 main industry codes and considered six different models of consolidation and how they aligned to the objectives that Ofgem and BEIS are seeking to address in the Energy Codes Review.

04 Policy View on a quicker change process for the codes

In November 2019, we published our Policy View on how to achieve a faster, more consistent code change process, where we proposed practical steps that could be taken now to improve the change process across the codes, before wider reforms are brought in.

Figure 08

Policy View: Energy Codes Review

Under the simplified model there will be a number of benefits:
A simplified and more efficient user experience
Easier processes for new and existing users to navigate
A scalable and flexible solution for future changes to energy market rules
The ability to process changes more quickly and the opportunity for more tailored engagement of parties
Consistent processes including a one-stop-shop service desk for market participants to use which would cover all the codes
The potential pooling of credit arrangements between the codes to reduce energy companies’ credit burden
Greater interaction between Distribution System Operators and the Electricity System Operator
Cost synergies

With the Government’s commitment to net zero emissions target, it is clear that the management of central market rules will have to change. We will continue to advocate that changes across the code governance arrangements are necessary to ensure that the GB energy system is more flexible and responsive. The system must support a range of new business models from new and existing BSC Parties to deliver progress towards the net zero emissions target.

01 Energy Codes Review

Building on our analysis we will continue to support and contribute to the Energy Codes Review. This includes supporting the Government and Ofgem during the implementation phase, if they decide to introduce reforms.

02 Faster code change process

Separately, we will look for further opportunities to streamline the BSC for the benefit of existing parties and new entrants. We will also engage Ofgem on our proposals for achieving a faster, more consistent change process which can act as a first step towards improving the codes before wider reforms are introduced.

03 Applying our skills

Finally, with the support of the industry, we will investigate opportunities to apply our code management and service delivery skills in other parts of our sector.

Customer-centric

Improving the customer experience and developing richer customer relationships

01 Ofgem’s code administrators’ survey

For the third consecutive year, Elexon was top of Ofgem’s energy code administrators’ performance survey, with 86% of respondents saying they were satisfied or very satisfied with our performance. Elexon was the only code administrator whose overall satisfaction score did not decline.

02 Elexon’s customer survey

In 2019, our own annual customer survey by an independent party, showed that satisfaction rose to 71% (meaning 71% of respondents rated us eight or more out of 10). This is our highest score since 2016 and up seven per cent on 2018.

On the ‘Value for Money’ indicator, 53% of our customers rated Elexon as eight out of 10 or higher, which is the highest ever score since the survey began in 2003. However, we are not complacent and continue to take on board our customers’feedback to improve the cost-effectiveness of our services.

03 Supplier of Last Resort Process

We played a key role in supporting Ofgem through the Supplier of Last Resort process (SoLR) where customers of a failed supplier are transferred to a new supplier. As such, we worked with Ofgem and suppliers to efficiently and effectively transfer 800,000 customers to new suppliers through the SoLR process smoothly and without delay.

Figure 09

Code administrators’
performance survey, 2019
86 %
Are satisfied or very satisfied with ELEXON’s overall service provision
Comparison of Satisfaction with energy codes
Chart by Visualizer

They are professional and knowledgeable on BSC subject matter, as well as strong at facilitating and report writing for workgroups

Figure 10

Our comprehensive ongoing
support for Parties

We are committed to further improving our programme of comprehensive training and bespoke advice, which is highly regarded by the industry. Our aim for 2020/21 is to further digitalise the customer journey, to ensure that we place customers at the forefront of our digital transformation.

01 Delivering the highest standard of services to BSC parties

Operational Support Managers (OSMs)
We offer comprehensive ongoing support to BSC Parties right from when they are looking to enter the market, as shown in Figure 10.

An important part of this is the dedicated OSM that we provide for each Party. We know this is appreciated by our customers and we will invest further in training of our OSMs and encourage them to gain a greater understanding of the needs of our customers.

We were pleased that the 2019 customer satisfaction survey showed increased scores in this area.

Industry days, educational sessions and webinars
We are evolving our comprehensive programme of support for all our customers throughout their lifecycle in the industry. We will continue to review the content regularly to reflect market changes and your business needs.

New ways to support BSC Parties
We will develop new features for parties to self-manage their BSC accounts. We aim to provide a 360-degree view of the customer status on the Market Entry journey and clear visibility of the next steps.

An early online preview of the forms will reduce the overall length of the market entry process and allow Elexon’s OSMs to extend support to parties early in the process, where required. This will make the BSC accession process easier to navigate.

02 Helping new and existing market participants to navigate industry processes

We will look for ways to enhance our support to all market parties and coordinate with other codes. Our ongoing monitoring of your training needs provides us with insight to develop more specialised training to ensure that new entrants as well as existing parties are aware of their obligations under the BSC and can deliver those successfully.

Engagement

Working in partnership to enable ‘whole-system’ approach and industry convergence

01 Sharing our experience

We presented at BEIS, Ofgem, and industry seminars and events to share our knowledge and experience with a wide range of stakeholders, from code Parties to policy makers.

Elexon’s training opportunities
We welcomed almost 800 customers and stakeholders to our training sessions and seminars.

Energy Data Taskforce
In addition, we supported and fully participated in the Energy Data Taskforce and progressed Elexon’s Data Strategy in line with its recommendations.

The Performance Assurance Framework review has been a very positive development. I participated directly in workgroups which were conducted in an efficient, productive manner to elicit the required feedback to help inform the decisions going forward

Close collaboration between all parties, industry, Government and Ofgem will be needed to deliver a ‘whole-system’ approach to facilitate fundamental changes such as the electrification of transport and heat. As a major central services provider, we will continue to identify challenges and work with our stakeholders to identify practical and cost-effective solutions for them.

01 Enabling ’whole-system’ approach to industry changes

During 2020/21, we will use our expertise to proactively support the BSC change process and provide guidance and advice to Modification workgroups.

We will continue to share our technical knowledge and insights on new market and regulatory developments to work on the solution and provide sound legal advice. We will continue to play a key role in the timely completion of the major industry change initiatives.

We will also continue to engage with our customers and a wider range of market participants to better understand their businesses and the challenges they face.

I feel that every aspect of the day was delivered to an extremely high standard and all presenters are professional and obvious experts in their field

Digital platform

Creating a digital platform to meet the changing needs of energy market

01 Wider Access and TERRE

In 2018/19 Elexon embarked on a multi-year plan to re-architect our central systems along with delivering on our Wider Access and TERRE commitments. Figure 11 shows the timeline for implementing the plan. During 2019/2020, we successfully progressed core elements of the developments, including the internal launch of the Customer Solution.

02 The Customer Solution

The Customer Solution is a key feature of our new Platform which will digitalise market entry and enable existing parties to self-manage their accounts – a first for any industry code.

03 Go-Live for Wider Access

During the year, we developed the systems required for participation in Project TERRE. In December 2019, we delivered our P344 commitments for Wider Access, which enables independent aggregators to participate in the BSC. As part of this release, we launched the Settlement Solution, which performs our data and calculation Settlement services, and deployed it on our new digital platform.

Figure 11

Our journey to marketleading
platform

Through the Foundation Programme, we remain committed to modernising the technical architecture of the BSC central systems. Upon completion, it will deliver a flexible, scalable platform to provide digitalised market entry, customer account management, settlement and data insight services to meet the future needs of a changing energy market.

A major focus will be the delivery of our industry testing on P344 obligations to enable Project TERRE, which will allow GB market participants to trade in the European electricity markets. Ofgem announced in November 2019 that it had granted National Grid ESO a derogation from participating in Project TERRE until 30 June 2020 at the latest and Elexon is working closely to align its BSC plans for TERRE industry testing with National Grid ESO.

We have adopted a phased approach to delivering the Foundation Programme, to minimise the overall cost and risk to to BSC Parties.

We comply with the industry standard multi-layered approach to cyber security principles and guidelines developed by UK NCSC (National Cyber Security Centre) for all our technology initiatives.

We are committed to preserving the confidentiality, integrity and availability of all the physical and electronic information. We have achieved and are maintaining our ISO27001:2013 accreditation, the scope of which covers the people, processes, technology and facilities for the provision of regulatory code administration and imbalance Settlement.

Three key features form the new platform:

  • Settlement Solution: performing scalable, flexible and modular electricity Settlement calculations (underlying platform deployed in 2019; further
    scope of agent services migrating over several years).
  • Customer Solution: digitalising market entry, registration and account management for both new and existing electricity companies (multi-year delivery, started in 2018).
  • Insights Solution: receiving, processing and publishing data together with insights to aid business and industry decision making (multi-year delivery,
    starting in 2019/20).

Figure 12

Elexon’s digital
platform

During the year we will be raising awareness of the role and progress of the Foundation Programme, including the external launch of the Platform and Customer Solution, which is scheduled to take place later this year.

01 The Customer Solution

We will continue to enhance the digital Market Entry/Exit processes along with account management functions to turn the end-to-end customer journey into an online, streamlined and self-managed experience. We have several releases planned for 2020/21 that will see an increased level of digitalisation of various customer steps and processes. With the modern system’s capabilities to support automated workflows, provide guidance and help features and clear visibility of the next steps, we will improve the customer experience and reduce the time required for market entry and asset registration processes, as we deploy this best-in-class system for managing all customer data in one place.

02 Insights Solution

We will continue our work on planning and scoping our Insights Solution, which will re-platform our existing BMRS in three phases. It will enhance our understanding of data and how we can best use those insights to the benefit of the industry. The new Insights Solution will provide the foundation on which to build new capabilities, providing options for developing services that use different technologies while leveraging common governance and security services.

Talented people

Developing our end-to-end service capabilities to enable industry to benefit from our experience

01 Evolving customer care

Taking into account our customers’ feedback, we evolved our customer services policy to explain how we are supporting BSC Parties during their lifecycle from market entry through to fully-fledged market operations.

02 Continued drive for excellence

During 2019/20, Elexon people undertook targeted training to keep improving their skills, acquire new skills and build their capacity to respond to the rapidly changing energy market.

Great opportunity to obtain an overview of many areas of the electricity industry. A great team atmosphere with lovely people who want to improve things for the electricity industry

It is important for us to develop the skills of Elexon staff so they can deliver our value-adding services in code management, central systems delivery and policy support.

01 Building on our end-to-end service capabilities

We have developed ‘end-to-end’ service capabilities and business model that extends beyond basic code administration.

As in previous years, we will maintain our focus on developing our people’s expertise. This is so we can build new capabilities in the business such as advanced analytics and insights, customer journey digitalisation, artificial intelligence, data science and modelling.

This is particularly important for our Foundation Programme platform delivery, where we have already brought in people with new skills.

02 Developing and retaining talent

We are creating leaders of the future in our own workforce through our mentoring scheme and graduate programme.

03 Maintaining our Investors in People status

We already have Silver Investors in People (IIP) Accreditation and will continue to work with the IIP to enhance our approach.

04 Knowledge sharing and transfer

We will maintain our focus on knowledge sharing and transfer amongst colleagues, and by extension to our customers. Our goal is to enable the industry experts of tomorrow.

Compared to other codes, the BSC modification procedure is very well managed and it normally progresses very well. The team at Elexon truly are critical friends and that amazing level of expertise would be valuable to all other codes

Electricity Market Reform

BSC Parties will be aware that EMR Settlement Ltd (EMRS), Elexon’s wholly owned separate subsidiary, is the Settlement Services Provider to the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC), delivering settlement services for both the Capacity Market and the Contract for Difference schemes.

This separation ensures risks and liabilities from EMR Settlement activities cannot affect Elexon. While some of our people are full-time on this EMR activity, other industry experts from Elexon support EMR Settlement activities part-time, but regardless, all record their time to ensure their cost is allocated appropriately to BSC or EMR activities. This also enables us to allocate a proportionate share of the Elexon overheads such as office costs etc.

Nearly £4.5m of such costs have been borne by EMRS since 2015, meaning that without the EMR activities, BSC Parties would have had to bear an additional £4.5m over that period.

LCCC and ESC reviewed the EMRS contract in 2019 using independent consultants. Based on their findings, that the service represented value for money, plus EMRS’ track record of service delivery and system implementation, the review successfully concluded and the contract will now continue until 2026.