Skip to content
Please check an answer for every question.
Cookie settings

Total may deposit the following categories of cookies: Cookies for statistics, targeted advertising and social networks. You have the possibility to disable these cookies, these settings will only be valid on the browser you are currently using.

Enabling this cookie category allows you to establish statistics of traffic on the site. Disabling them prevents us from monitoring and improving the quality of our services.
Our website may contain sharing buttons to social networks that allow you to share our content on these social networks. When you use these sharing buttons, a link is made to the servers of these social networks and a third-party cookie is installed after obtaining your consent.
Enabling this cookie category would allow our partners to display more relevant ads based on your browsing and customer profile. This choice has no impact on the volume of advertising.

Electricity market-wide settlement reform

Ofgem programme to deliver universal half-hourly 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.

Ofgem considers it in consumers’ interests to be settled using half-hourly consumption data from smart meters and automated meter reading (AMR) and as such has launched a Significant Code Review (SCR) which sets out their timetable for delivery of market-wide half-hourly settlement. There are five options being considered (known as Target Operating Models). The main objective of the TOMs is to create an enduring Settlement process that is simple, more accurate and facilitates innovation based on the Design Principles set out by Ofgem.

This will be a major industry programme that will deliver a modernised settlement regime designed for the smarter energy market.

More information can be found on this page of Ofgem’s website: https://www.ofgem.gov.uk (opens in a new window).

A recent presentation from Ofgem outlining the status and way forward is attached. 

 

The timetable for reaching a decision on the target operating model is as follows:

flowchart showing electricity market-wide half-hourly changes