UK energy regulator Ofgem is to introduce half-hourly settlement (HHS) across the electricity retail market
Published May 17, 2021
HH electricity consumption data will be made available to central settlement services from consumers’ smart meters. Ofgem expects implementation to full market HHS to be complete by October 2025.
Most domestic consumers and small businesses do not have meters that can record half-hourly consumption. Instead, the suppliers estimate consumption for each half-hour.
Market-wide HHS will enable suppliers to better calculate the cost of providing their services. This will encourage them to offer new tariffs that increase flexible use of energy and lower consumer charges. Wider use of flexible tariffs, automation, vehicle-to-grid solutions and battery storage. will help decarbonise the energy sector.
The move to half hourly settlement in the domestic sector will mean whole market is more dynamic, with more demand-side response projects and storage and intermittent power production coming onto the system.
Although the measure will be more relevant to small businesses, it is expected to a more dynamic market as a whole by helping dampen down price swings, integrate more intermittent renewables and minimise the cost of accommodating millions of electric vehicles.