Milestone 16 (M16): Cutover to the new Settlement Timetable

Summary and background

Programme Milestone 16 (M16): Cutover to the new Settlement Timetable, is part of the overall MHHS Programme Delivery Plan which you can find on the Planning page of this website. It is the final Programme Milestone to deliver the Ofgem directed MHHS Target Operating Model (TOM) and MHHS Business Case.  

The M16 objective is to deliver reduced timescales for the Settlement Timetable, from 14 months to four months and the Initial Settlement run (SF) reducing from 15 Working Days (WD) to seven WDs.  

MHHS Programme workstreams were created to support delivery of M16 and the transition to the reduced Settlement Timetable. The MHHS Design Workstream delivered the MHHS Baselined Design Artefacts and Operational Choreography V5.5 which you can find in the Baselined Design Artefacts: Supporting Documents library on this website. The Transition Design Workstream Tranche 2, delivered the Settlement Timetable Transition Design Solution, which reduces the Settlement Timetable in three steps:  

1. From 14 to seven months  
2. From seven to four months  
3. Reduces the Initial Settlement run (SF) from 15 Working Days (WD) to seven WDs

The Settlement Timetable Expert Group (STEG) are tasked with developing and delivering the settlement and migration monitoring, reporting and success criteria to enable appropriate decision-making and to deliver M16 and the Settlement Timetable reductions.

STEG will consult with industry in Q2 2026, to ensure that the correct migration and settlement data items are being monitored and reported on, and the success criteria is set correctly.

For more information about STEG activities, the STEG delivery plan and the STEG consultation, please visit the STEG page of this website.

Detailed M16 and Settlement Timetable Decision Points

The following information sets out the decision choreography of how and when decisions were made to deliver the reduced Settlement Timetable.

1. Elexon lead Design Working Group (DWG) Recommendation
2. Ofgem Directed MHHS Target Operating Model (TOM) and Settlement Timetable Changes
3. MHHS Programme Delivery

1. Elexon lead Design Working Group (DWG) Recommendation

The Design Working Group (DWG) recommended a preferred Target Operating Model (TOM) to Ofgem, which  included a reduction in the timing of the Initial Settlement (SF) Volume Allocation Run (VAR) and the Final Reconciliation (RF) Run.

Click on the link below to view the original recommendation paper:Target Operating Model for MHHS DWG's recommendation to Ofgem

2. Ofgem Directed MHHS Target Operating Model and Settlement Timetable Changes

Ofgem directed the new MHHS TOM which included changes to the Settlement Timetable. You can view these decisions and directions below:

Future enabling the market-wide settlement reform TOM - September 2019

Electricity Retail MHHS: Decision - April 2021

Ofgem Final MHHS decision and Business Case - April 2021

Key Settlement Timetable decision outcomes: 

• Initial settlement run (SF) takes place five to seven working days after the settlement date
• Final settlement run (RF) takes place four months after the settlement date
• Post Final settlement run (DF) takes place 20 months after the settlement date