Ofgem PPIR: Cost Analysis
In April 2021, Ofgem published its decision that MHHS should be introduced, based on the Target Operating Model recommended by the Design Working Group.
Alongside this, Ofgem published a Final Impact Assessment (Final IA). The Final IA estimated quantified net benefits to GB energy consumers of £1.6bn to £4.5bn over the period 2021-45. The Final IA also noted that implementing MHHS (including third party access to HH consumption data) should deliver significant additional benefits that could not be quantified in advance arising from increased competition, innovation and consumer choice. As part of the Final IA, Ofgem sought to estimate the costs of implementing and operating under the new MHHS arrangements. The central cost estimate was £541.3m over the period 2021-2045.
Since 2022, the Cross-Code Advisory Group (CCAG), in conjunction with Programme participants, has been developing the detailed suite of modifications to the Balancing & Settlement Code (BSC), the Retail Energy Code (REC) and the Distribution Connection and Use of System Agreement (DCUSA) that will be necessary to introduce the new MHHS arrangements.
Later this year, Ofgem expects to use its Significant Code Review (SCR) powers to raise proposals to modify the BSC, REC and DCUSA. As part of that process, it will be necessary - as with any other important code change - to assess the impact of these code modification proposals. To reduce the burden on those responding later this year (in what are likely to be relatively short timescales directed by Ofgem), Ofgem has asked the Programme to seek information now from Programme participants on the costs for implementing and operating under the new MHHS arrangements.
To that end, Ofgem has published a Programme Participant Information Request (PPIR) to obtain information from participants on the costs of implementing and operating under the new MHHS arrangements.
Please review the Guidance Document for more information and support in completing the PPIR Form, both available via the links below:
This PPIR closes at 17:00 on Friday 5 July 2024.
If you have any questions about the content of this PPIR, please email [email protected]
If you’re having any technical issues or problems accessing the form, please email [email protected]
