Chief Executive’s foreword
to BSCCo Business Plan
We promise to continue to deliver our ‘best in class’ business-as-usual services, as well as embracing our drive and commitment to support our customers
I have the immense privilege of leading Elexon, an organisation full of highly-regarded, highly-skilled market experts, as the energy market continues to change at an ever increasing speed.
This is seen in the number of new entrants, and new products and services being introduced in the industry as it evolves. These new products and services range from home batteries to time-of-use tariffs; from smart meters to new demand side aggregation services; from electric vehicles to vehicle to grid (V2G) services; all promise to provide more choice for consumers than ever before.
We see it as our number one priority to support you through these changes. In fact, we have already suggested a number of practical solutions to open up the Balancing Mechanism to new market participants and to enable consumers to have multiple energy providers.
We are determined to evolve along with the industry, maintaining and improving our historically high standards of service, retaining and attracting talented colleagues and delivering to our customers’ needs.
However, despite the high levels of customer satisfaction demonstrated in Ofgem’s and our own surveys, we are not complacent and we continuously look at areas where we can improve, be that our website or our underlying systems.
But we also believe improvements can be made beyond the Balancing and Settlement Code (BSC). And our view is that the central services landscape is too fragmented and complex and that this can be confusing for new and existing market participants and, potentially, creates additional cost for consumers.
That is why our Corporate Strategy clearly states:
With the support of our stakeholders and partners, simplify and consolidate complex and fragmented services, develop new market solutions and actively facilitate innovation for the benefit of GB energy markets and the UK economy.
Our 2019/20 BSCCo Business Plan supports this and we promise to continue to deliver our ‘best in class’ business-as-usual services, as well as embracing our drive and commitment to support our customers. During the year, we will proactively identify and implement the arrangements needed to support innovative consumer-facing solutions, as the energy industry continues to radically change and innovate.
Supporting consolidated central market arrangements
During 2019/20, we will continue to support the government’s Smart System and Flexibility Plan and fully participate in the BEIS/Ofgem review into codes and code governance.
However, we strongly believe it is only by simplifying and consolidating central market arrangements, sharing best practice and streamlining processes to enable wider participation from smaller, newer organisations and speed up existing change processes that we will provide a cost effective way of unlocking the benefits to the end consumer, while still maintaining the need for rigorous assurance in arrangements.
We will lead, drive and deliver new opportunities for customers and industry participants in markets that weren’t previously open to them.
We will share ELEXON’s breadth of knowledge and our well-established processes and governance along with our standards of service, with the Energy Codes Review team and apply them to any new arrangements.
To that end, our 2019/20 Business Plan demonstrates how we will lead, drive and deliver new opportunities for customers and industry participants in markets that weren’t previously open to them, including aggregators, electric vehicles, storage and value that can be obtained from smart meters.
Creating a digital platform to meet the changing energy market
During the year, we will continue to invest in our systems to deliver a flexible, scalable and open platform providing settlement and other value-added services to meet the future needs of a rapidly changing energy market.
By working collaboratively with BSC Parties and other key stakeholders across the industry, we will shape and design improved processes and customer interfaces that are for the benefit of the market.
In the next few years, we are committed to transform and transition the current ageing BSC central systems to a modern technology platform that will be easier to maintain, mitigate the risks of failure and deliver better value for money to our customers, as well as greater flexibility for future market requirements.
Supporting our customers now and in the future
During the year, we will continue to develop solutions that support regulatory and government policy that benefit you. We take our role as trusted, independent, reliable market experts seriously and our 2019/20 BSCCo Business Plan sets out how we will support you now and in the future.
2019/20 BSC Budget
We are now serving more Parties than ever before, supporting many more new entrants and smaller organisations, consulting on more Modifications and Change Proposals, processing more Trading Disputes, Defaults and Supplier of Last Resort (SoLR) events, responding to more industry consultations and leading more market initiatives. We are also faced with reviews of the supplier hub, supplier licensing and now a once in a generation review of codes and code governance.
At the same time we will be implementing Market-Wide Half-Hourly Settlement and making changes to our systems and process to deliver TERRE, the largest system change since NETA, and opening the Balancing Mechanism to more and smaller players.
Additionally we are leveraging those TERRE changes, which are mandatory, to redevelop our core systems in response to market transformation to make sure we can support you during the year, continuing to deliver our best-in-class service that you appreciate so highly.
That is why, as you will see from the Budget section of this Business Plan, we have had to make a proportionate increase to our budget for 2019/20.
I welcome your comments and look forward to working with you and your businesses over the coming year.
Chief Executive Officer