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: 22nd Feb 2017
  • Open letters & 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 if a supplier is non-compliant with P272.

  • Published: 14th Feb 2017
  • Agendas, minutes and presentations
  • 3 Associated documents
Summary note and slides from the Mandatory HHS Workshop, held on 19 January 2017.

  • Published: 28th Nov 2016
  • Open letters & correspondence
  • 1 Associated documents
This letter reminds suppliers that compliance with the industry codes is an obligation under their licence and provides some clarity around our proposed approach when considering whether to take enforcement action.

  • Published: 11th Nov 2016
  • Closed: 6th Jan 2017
  • Consultations & responses
  • 33 Associated documents
This consultation sets out our plan for moving to mandatory half-hourly electricity settlement. We welcome views from interested parties on this plan and more widely on the move to mandate half-hourly settlement.

  • Published: 28th Jun 2016
  • Decisions, Open letters & correspondence
  • 1 Associated documents
This letter outlines our decision to launch a Significant Code Review for mandatory half-hourly settlement (HHS)

  • Published: 23rd Jun 2016
  • Reports & plans
  • 1 Associated documents
This tracker consolidates information about the changes to enable cost-effective elective half-hourly settlement.

  • Published: 26th May 2016
  • Decisions
  • 2 Associated documents
This paper sets out our conclusions on the barriers to elective half-hourly settlement, and explains the next steps we think the industry should take.

  • Published: 27th Apr 2016
  • Agendas, minutes and presentations
  • 3 Associated documents
We are publishing a note from our April 2016 workshop on elective half-hourly settlement, alongside slides presented at the workshop.

  • Published: 9th Mar 2016
  • Open letters & correspondence
  • 1 Associated documents
We are publishing a short overview of the main messages from responses to our December half-hourly settlement open letter. We also indicate how you can register your interest in our upcoming stakeholder workshop on 5 April.

  • Published: 17th Dec 2015
  • Closed: 29th Jan 2016
  • Open letters & correspondence
  • 28 Associated documents
In this open letter we outline our intention to identify and remove barriers facing suppliers wishing to settle small electricity consumers on a half-hourly basis in the short term. We also discuss a move to mandatory half-hourly settlement in the longer...

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