Executive Summary: Central Volume Allocation (CVA) Workshop – Solution Options

Elexon’s second CVA workshop focused on developing potential solutions to address the challenges identified through industry engagement. The session provided participants with an opportunity to review emerging solution options, discuss wider policy considerations, and shape the direction of future CVA reform. The workshop forms part of a broader programme assessing whether current CVA arrangements remain fit for purpose in an increasingly complex and data-driven electricity market.

The workshop built upon concerns previously raised by market participants, particularly:

• Heavy reliance on manual and email-based processes.
• Limited automation and system integration.
• Significant dependence on specialist industry knowledge.
• Poor visibility of process status and issue resolution.
• Administrative complexity within registration and market entry activities.
• Operational and financial risks arising from data quality and estimation processes.

Proposed Direction of Change

Elexon presented a strategic vision for a more modern CVA environment, centred on:

• Increased automation of operational processes.
• Greater digitalisation of customer journeys and registrations.
• Improved transparency and process visibility.
• Enhanced data quality controls and validation.
• Better integration between systems through modern digital interfaces.
• Reduced dependency on manual intervention and specialist knowledge.

Participants broadly supported the ambition to create a more streamlined, customer-focused and resilient CVA framework capable of supporting future market reforms. 

Strategic Considerations

The workshop also examined external policy developments that may significantly increase pressures on existing CVA arrangements, including:

• Reform National Pricing, which could substantially increase the number of assets operating within CVA arrangements if thresholds are reduced.
• Faster Settlement initiatives, which will require more timely and accurate data processing and reduce the viability of manual workarounds. 

There was recognition that current systems were not designed for the scale and flexibility that future industry reforms may require, reinforcing the case for modernisation. 

Next Steps

The workshop concluded with agreement that further discovery work and customer engagement are required to refine solution options and determine the most effective delivery approach. Elexon indicated that future activity will focus on:

• Assessing potential funding approaches.
• Undertaking detailed discovery and design work.
• Continuing engagement with industry stakeholders.
• Developing both short-term improvements and longer-term transformational change proposals.

The review is particularly relevant as many of the challenges identified mirror long-standing concerns around complex registration processes, reliance on manual interventions, limited visibility of market activities and growing operational pressures. A successful modernisation programme has the potential to improve efficiency, reduce administrative burden, strengthen settlement accuracy and support future market reforms affecting transmission-connected assets.

The workshop demonstrated strong industry support for modernising CVA arrangements. While current arrangements continue to fulfil their core role, stakeholders agreed that greater automation, transparency and system integration will be essential to ensure CVA remains resilient, efficient and capable of supporting future electricity market developments.

Ofgem has launched a consultation on proposed changes to electricity and gas supply licence conditions that would clarify the ability of energy suppliers and smart meter installers to provide consumers with objective information about low carbon technologies (LCTs) during smart meter installation visits. The consultation opened on 24 September 2026 and closes on 22 October 2026. 

The Energy Code Reform programme, being delivered jointly by Ofgem and the UK Government, will introduce significant changes to the way Great Britain’s energy codes are governed. As part of the reforms, code managers such as Elexon will become licensed organisations operating under a new regulatory framework designed to create a more strategic, coordinated and consumer-focused approach to code governance.

One of the most notable changes for Balancing and Settlement Code (BSC) Parties is the planned replacement of the BSC Panel with a Stakeholder Advisory Forum (SAF). The new forum will provide strategic stakeholder input to support licensed code managers in delivering the objectives set out by Ofgem through an annual Strategic Direction Statement (SDS).

The reforms are intended to improve collaboration across the energy sector, strengthen alignment between industry codes, and ensure that code change processes better support the transition to a smarter, more flexible and net zero energy system. Licensed code managers will be expected to work together to deliver regulatory priorities while continuing to engage closely with industry participants.

For organisations operating within the BSC framework, understanding these governance changes will be important as the industry prepares for a new era of code management and stakeholder engagement.

Further information is available in Elexon’s article on Energy Code Reform and its impact on the BSC Panel.

The electricity industry is being invited to provide feedback on proposals to decommission the Market Domain Data (MDD) service as the transition to Market-wide Half-Hourly Settlement (MHHS) progresses.

Ofgem has launched a consultation on the proposed governance and legal framework for the Smart Data Repository (SDR), a key component of the UK’s evolving energy digitalisation landscape. The consultation seeks views on licence and code modifications required to establish and operate the SDR, which will support secure access to smart meter consumption data and underpin future innovation across the energy sector.

The SDR is being developed as part of the Market-wide Half-Hourly Settlement (MHHS) programme and will be operated by Elexon. Its primary role will be to store, manage and share half-hourly electricity consumption data, creating a long-term repository that extends beyond the 13 months of data currently held on smart meters. Ofgem believes this approach offers a cost-effective and efficient means of enabling wider access to valuable energy data while supporting the objectives of the Energy Digitalisation Framework.

A key feature of the proposed solution is its integration with RECCo’s Consumer Consent Solution (CCS), allowing consumers to provide explicit consent for authorised third parties to access their energy data. This is expected to facilitate the development of new services, support greater consumer participation in energy markets, and improve access to data-driven insights for organisations across the sector. 

Ofgem is proposing amendments to the Energy System Operator Licence and supplier licence conditions to provide a clear legal basis for the SDR’s operation and governance. The consultation also considers how data privacy, security, proportionality and oversight arrangements should be managed as access to energy data expands. Previous industry discussions have highlighted the importance of consistent data governance practices while recognising that different datasets may require different levels of control and protection.

Improved access to high-quality smart meter data could support enhanced asset management, meter health monitoring, settlement processes, consumer services and future flexibility markets. Industry stakeholders have also highlighted the importance of interoperability between the SDR, CCS and other emerging data platforms to ensure efficient and consistent use of energy data across the sector.

The consultation closes on 19 October 2026, with Ofgem inviting responses from suppliers, code bodies, consumer groups and data users.

Further information: Ofgem Smart Data Repository Consultation [ofgem.gov.uk]

The Institution of Gas Engineers and Managers (IGEM) has published IGEM/G/4 Edition 3 – Definitions for the Gas Industry, providing a single, consistent source of terminology for use across IGEM standards and guidance documents. The new edition seeks to address historic variations in terminology that have developed across standards over time, establishing a common reference point that supports consistency, regulatory alignment, and current industry best practice. 

For AMO gas members, the publication is particularly relevant as it introduces a standardised approach to definitions that will apply to IGEM standards published from 1 April 2026 onwards where individual definitions are not provided within the specific standard. Existing standards published before this date will continue to use their existing definitions until they are revised, withdrawn, or superseded. This transitional approach aims to minimise disruption while improving industry-wide consistency. 

The document has direct relevance to gas metering activities. IGEM confirms that the standard should be read alongside IGEM/G/1 – Defining the Boundaries Between the Network, Primary Meter Installation and Installation Pipework, recognising the importance of established metering definitions that have been accepted by Ofgem for use within Great Britain. The alignment between IGEM/G/4 and IGEM/G/1 will help ensure consistent interpretation of metering responsibilities, asset boundaries, and industry terminology across operational, engineering, and regulatory environments. 

The scope of the standard extends beyond natural gas to include LPG, LPG/air systems, biomethane, hydrogen and hydrogen blends, reflecting the evolving energy landscape and supporting future decarbonisation activities. For AMO members involved in metering, asset management, network interfaces, or emerging hydrogen projects, the publication provides greater clarity and consistency as the industry prepares for a more diverse gas mix. 

While the publication does not introduce new operational requirements, it provides an important reference point that will improve consistency across future technical standards, support clearer interpretation of metering arrangements, and help reduce ambiguity when implementing new gas industry requirements. Members should consider reviewing internal procedures, technical documentation, and training materials to ensure terminology remains aligned with the latest industry definitions.

The Department for Energy Security & Net Zero (DESNZ) has launched a consultation on its minded-to position regarding Project Activity 4 of the Data Communications Company (DCC) 4G Communications Hubs & Networks (CH&N) Baseline Margin Project Performance Adjustment (BMPPA) Scheme. The consultation assesses whether DCC’s 4G communications services were delivered successfully following Initial Pallet Validation (IPV) and whether DCC should retain the performance-related margin placed at risk under the scheme. 

DESNZ, the SEC Panel and DCC have all independently awarded a score of 3 out of 3, representing the highest possible performance rating and indicating there were no material areas of concern with the delivery of 4G communications services during the assessment period. As a result, DESNZ’s minded-to position is that DCC should retain 100% of the £866,000 baseline margin placed at risk under Project Activity 4. 

For AMO members, the assessment provides positive assurance regarding the operational performance of 4G Communications Hubs. The SEC Panel reported that 4G hubs have generally performed well, particularly when replacing previously non-communicating devices, and have delivered benefits during meter exchanges by avoiding full power-down requirements at customer premises. Suppliers also reported encouraging installation outcomes during the early stages of deployment. 

The review did, however, identify several areas of ongoing industry focus. These included two Category 2 service incidents linked to external Vodafone mobile network issues rather than faults with the communications hubs themselves. While both incidents were resolved within hours and had limited customer impact, they highlighted the importance of effective change management and notification arrangements between telecommunications providers and DCC. Enhanced notification processes have since been introduced. 

Coverage performance remains another important consideration. Suppliers continue to report challenges when planning installations in areas where 4G WAN coverage is uncertain. DESNZ acknowledged that coverage levels were initially below expectations, but recognised that DCC has implemented roaming capabilities and ongoing coverage improvement initiatives which are expected to further enhance service availability across Great Britain. 

The consultation also highlights a communications hub behaviour issue that can occur when a hub becomes unseated from the electricity meter, causing flashing lights that may be misinterpreted by field engineers as a device fault. Industry feedback suggests this may have contributed to some unnecessary communications hub returns. DCC has investigated the issue and is addressing it through firmware enhancements.

Overall, the consultation provides confidence that the 4G CH&N programme is delivering improved communications performance, supporting the transition away from legacy communications technologies and helping to increase successful smart meter connectivity. While coverage enhancement, service governance and installation experience remain areas for continued improvement, DESNZ’s assessment concludes that DCC’s performance during the monitoring period warrants the maximum score under the BMPPA framework. Responses to the consultation are requested by 2 October 2026. 

The Retail Energy Code (REC) Code Manager is inviting nominations from Supplier Parties to fill a vacant Supplier representative position on the REC Metering Expert Panel (MEP).

Following the implementation of Issue 93, the CoP4 End of Life Sample Calibration check was introduced for CoP3 and CoP5 Metering Systems. This check is intended to assess the accuracy and long-term performance degradation of older meters, particularly those approaching the end of their expected operational life.

On 16 February 2026, Elexon will initiate the End of Life Sample Calibration process in accordance with the BSC CoP4 – Code of Practice for the calibration, testing and commissioning requirements of Metering Equipment for Settlement purposes.

Meter Operator Agents (MOAs) will be contacted directly by Elexon with details of the applicable requirements and the meters in scope for the 2026/27 cycle. The notification email will also confirm the date by which Elexon requires submission of the annual report.