- Publication date
- 24th September 2015
- Information types
- Policy areas
Together with changes to industry processes, smart meters open the door to far greater customer involvement in the energy market. Settlement processes work out how much consumers use in each half hour of the day and how much suppliers pay for that electricity.
Currently, most consumers’ half-hourly consumption is estimated. As smart meters can record actual half-hourly consumption, this data can be used in settlement. This would encourage suppliers to offer tariffs that cut charges for consumers that use electricity when it is cheaper. We’ve recently approved an industry proposal (P272) to settle larger businesses using their half-hourly consumption data.
The attached document answers some frequently asked questions about this change. We will update this periodically.
We have also published a guide to help business consumers understand the change. We suggest reading this together with the FAQs.