Ofgem to assess case for mandatory half hourly settlement for smaller consumers
Launching its significant code review (SCR) on electricity settlement reform, Ofgem has said it will assess the case for a mandatory half hourly electricity settlement (HHS) process for domestic and smaller non-domestic customers.
Through use of smart and advanced meters, customers’ half-hourly consumption can be recorded and remotely read. Previously, the settlement process was based on half hourly estimates.
HHS means that customers are settled based on their usage in each half hour, as recorded, improving the accuracy and timeliness of the settlement process.
Ofgem regarded such a move as key in enabling innovation in smart tariffs and a necessary step in achieving potential benefits from demand-side response.