Source · Select Committees · Environmental Audit Committee
Recommendation 13
13
Deferred
Expedite Ofgem's programme to deliver market-wide half-hourly settlement and report progress.
Recommendation
We further recommend that Ofgem expedite its programme to deliver market-wide half-hourly settlement. We expect Ofgem to provide a progress report in response to this recommendation, setting out current barriers to delivery of this objective, identifying measures to overcome them, and indicating a target date for final delivery. (Paragraph 67) Enabling sustainable electrification of the economy 45 Developing an electricity grid ready for net zero
Government response summary AI-generated
The government's response does not address the recommendation for Ofgem to expedite market-wide half-hourly settlement or provide a progress report. Instead, it discusses financial support and incentives for electricity network manufacturing supply chains, promising an update on wider incentives shortly.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
The Government notes the importance of Market-wide Half-Hourly Settlement (MHHS) implementation as an enabler of the increase in demand side response capacity required to meet the 2030 clean power mission. 2 https://www.gov.uk/government/publications/uk-electric-vehicle-infrastructure-strategy 3 https://www.neso.energy/publications/future-energy-scenarios-fes/fes-documents 4 ‘Profile 1: Drives 7,400 miles a year with typical household electricity use’ from https:// assets.publishing.service.gov.uk/media/66019a0065ca2fa78e7da7dc/future-default- tariffs-for-households-call-for-evidence.pdf MHHS will incentivise suppliers to reward consumers for shifting demand out of peak periods, resulting in better use of renewable energy, reduced system costs and savings for consumers. The Government expects Ofgem to work closely with Elexon and put in place the right processes and incentives to ensure the timely delivery of MHHS implementation. Ofgem welcomes the opportunity to provide the Committee with a progress report on the implementation of electricity retail MHHS. This progress report sets out: • the strategic context for Ofgem’s April 2021 decision to introduce MHHS; • the April 2021 timetable for industry to implement MHHS and the revisions made to that timetable in June 2023, along with the reasons for those changes; and • the current state of progress and prospects, including risks to timely delivery. Ofgem has now approved a proposal from the MHHS Implementation Manager, Elexon, to delay the completion of MHHS by 6.5 months to July 2027 at the earliest and December 2027 at the latest. This report outlines the actions that Ofgem will take to mitigate the risks of further delay during the implementation of MHHS. The progress report can be found at Annex A. Developing an electricity grid ready for Net Zero Connections
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