Electricity settlement

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. Suppliers can already choose to settle consumers half-hourly through our elective half-hourly settlement work. We expect, however, that we will have to require that all suppliers do this in order to maximise consumer benefits.

Looking forward

In July 2017, we launched our Significant Code Review, which sets out our revised timetable following our November 2016 consultation on the timetable for reform for market-wide half-hourly settlement (previously mandatory half-hourly settlement). The decision on whether to require that all suppliers across the market settle half-hourly will be made in mid-2019 and is subject to cost-benefit analysis.

HHS has a fundamental role in delivering the Smart Systems and Flexibility plan which could save consumers up to £40bn off their energy bills in the coming decades.

Publications and updates

  • Published: 14th Nov 2017
  • Guidance
  • 2 Associated documents
Half-hourly Settlement update: November 2017

  • Published: 3rd Nov 2017
  • Decisions
  • 0 Associated documents
Ofgem has made a decision on the membership of the Design Advisory Board for the Settlement Reform SCR.

  • Published: 23rd Oct 2017
  • Open letters and correspondence
  • 2 Associated documents
Request for Information to inform the Privacy Impact Assessment being undertaken in connection with the decision on access to data for half-hourly settlement.

  • 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.

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