Settlement reform update

Guidance

Publication date

Industry sector

Supply and Retail Market

Settlement reform highlights

Target Operating Model (TOM):  Since the last update, Ofgem approved the five skeleton Target Operating Model options developed by the Design Working Group for stakeholder consultation by Elexon. This concluded stage 1 of the Target Operating Model design work.

The design work now moves into stage 2, detailed design. This started with reviews by the Design Working Group and Design Advisory Board of the stakeholder responses to the skeleton Target Operating Model consultation. The reviews did not identify any additional Target Operating Model options required for consideration.

The Design Working Group has now commenced detailed design of the service requirements for the five skeleton Target Operating Model options, with a view to having a draft set of service requirements put together in late 2018.

Consumer Issues: We have published a consultation on access to half-hourly data for settlement, alongside a draft Data Protection Impact Assessment, a report on access to data arrangements, and 2 pieces of consumer research.  We welcome stakeholder comments – the deadline is 3 September 2018.

Smart Meters Act: An update on new powers granted to Ofgem to help us progress settlement reform.

Parliament completed the passage of the Smart Meters Bill on 22 May 2018. The Smart Meters Act received Royal Assent on 23 May 2018. A link to the Act is here: https://services.parliament.uk/Bills/2017-19/smartmeters.html. The Act provides powers for Ofgem to make code modifications that will allow the use of half-hourly smart meter data for electricity settlement and for Ofgem to make licence changes more quickly for the same purpose.

In the short term, there are no changes to how we are proceeding with our work on market-wide half-hourly settlement. We will provide more detail on the impact of the new powers in our Outline Business Case, to be published in mid-2018.

Stakeholder teleconference: Our next teleconference is planned for 26 July 2018 between 11:00-12:00 and will focus on our access to data consultation alongside an update on the TOM design work.  Please email half-hourlysettlement@ofgem.gov.uk if you would like to join.

Looking ahead

  • 17/07/18, 10-16: Design Working Group
  • 26/07/18, 11-12: Stakeholder Teleconference 

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If you have any feedback or enquiries, please contact us at half-hourlysettlement@ofgem.gov.uk