Outsourcer Steria has won a six-year £6 million contract to build and run a new settlement system for the UK energy sector.
The contract is with EMR Settlement, a wholly owned subsidiary of ELEXON, and covers the licencing of Steria's RT.Easy software as part of a new settlement system for energy generators and energy suppliers.
RT Easy is a dedicated tool designed and developed by Steria to provide additional tailored functionality within SAP IS-U, the SAP solution for the utilities industry.
The system covers both contracts for difference (CfDs) and the capacity market (CM) as part of the UK government's Electricity Market Reform (EMR) programme.
The contract, worth an initial £5.8 million, includes software licences, configuration and implementation activities, hosting of the infrastructure on a cloud-based solution, application support and maintenance, and business process services to manage the payments to energy providers.
The scope of the contract will form an important cornerstone for the changes that the government is looking to bring in to incentivise new investment in electricity generation, and ultimately the production of low carbon forms of electricity.
Peter Haigh, chief executive of ELEXON, said: "This is a significant step in the EMR programme and for ELEXON. Steria assured us they have the right experience and expertise to support our role as the settlements services provider for the EMR effort."