Electricity settlement

The electricity settlement process places incentives on suppliers to buy energy to meet their customers’ demand in each half hour of the day. Accurate and timely half-hourly consumption data from smart metering could significantly improve the quality of settlement, which in turn could encourage innovation and efficient use of energy.

We consider it is in consumers’ interests to be settled using half-hourly consumption data from smart meters. In 2014, we commissioned an expert group to explore how this could be achieved.

In January 2015, Ofgem launched a project to develop our strategy to enable and enhance the efficient provision and use of demand-side flexibility sources across the supply chain in the GB electricity system. Our next steps for settlement reform will be set out in the wider context of this strategy.

Publications and updates

  • Published: 27th Sep 2017
  • Decisions
  • 0 Associated documents
Ofgem has made a decision on the membership of the Design Working Group for the Settlement Reform SCR.

  • Published: 13th Sep 2017
  • Guidance
  • 0 Associated documents
Update on electricity settlement reform work at September 2017.

  • Published: 12th Sep 2017
  • Guidance
  • 1 Associated documents
This document outlines the work undertaken so far to develop the Project Objectives and Assessment Options for the market-wide half-hourly settlement Business C

  • Published: 21st Aug 2017
  • Open letters and correspondence
  • 3 Associated documents
Voluntary Request for Information to inform our consideration of whether or not to centralise functions currently performed by supplier agents.

  • Published: 21st Aug 2017
  • Open letters and correspondence
  • 3 Associated documents
This information request is seeking evidence on the potential impacts of mandatory half-hourly settlement to inform the Business Case.

  • Published: 24th Jul 2017
  • Guidance
  • 1 Associated documents
This update covers the announcement that we have launched the Mandatory Half-hourly Settlement Significant Code Review.

  • Published: 24th Jul 2017
  • Charts and data, Reports and plans
  • 2 Associated documents
Ofgem commissioned this report from Cambridge Economic Policy Associates (CEPA) on the distributional impact of time of use tariffs.

  • Published: 24th Jul 2017
  • Consultations and responses
  • 5 Associated documents
This statement launches the Electricity Settlement Reform Significant Code Review and sets out our revised timetable following our consultation on the plan for mandatory half-hourly settlement (HHS) in November 2016.

  • Published: 30th Mar 2017
  • Guidance
  • 1 Associated documents
An update on our work to implement half-hourly settlement (HHS) for the GB electricity market.

  • Published: 22nd Feb 2017
  • Open letters and correspondence
  • 1 Associated documents
This letter reminds suppliers that compliance with industry codes is an obligation and explains the separate actions that may be considered.

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