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.