Electricity Retail Market-wide Half-hourly Settlement: Draft Impact Assessment

Correspondence and other

Publication date

Industry sector

Supply and Retail Market

We are consulting on issues relating to the introduction of market-wide half-hourly settlement (MHHS) across the electricity retail market.

Due to the COVID-19 emergency, no deadline for consultation responses is being set at time of publishing.  When we set one, we will publish an update on the Ofgem website, and give at least 10 weeks’ notice.

MHHS will place the right incentives on retailers to develop and offer new tariffs and innovations that encourage and enable more flexible use of energy, for example, time of use tariffs, automation, vehicle to grid solutions and battery storage.

Accompanying the consultation document is a draft impact assessment (IA) of the introduction of MHHS. The IA sets out the potential impact of Ofgem’s preferred option for implementation, as well as the other options we have considered. We have also published a separate paper on the consumer impact of MHHS.

Please note, the analysis that underpins the IA and consultation document was carried out before the onset of the COVID-19 pandemic in GB. We are publishing these now in the interests of transparency. We will take account of the impacts of the developing public health situation on the project as we move forward. We are seeking views as part of the consultation on what impact stakeholders think the pandemic will have on the project timescales.

Once the consultation is closed, we will consider all responses carefully. We will publish any non-confidential responses alongside a decision on next steps on our website. If you would like any part of your response to be considered confidential, please let us know in your response alongside an explanation of why. Please clearly mark the parts of your response that you consider to be confidential, and if possible, place the confidential material in separate appendices to your response.