Ofgem has published an open letter confirming the introduction of mandatory half-hourly settlements (HHS).
A half-hourly electricity meter automatically sends updated meter readings to energy suppliers every half hour.
Not all consumers currently have meters capable of recording half-hourly consumption data. Instead, they are settled using estimates of their usage.
Half-hourly metering is mandatory for all businesses with a supply greater than 100kW but the new legislation will extend to organisations with profile classes 01 and 02 and will also include domestic customers by 2017.
Ofgem believes the rollout of smart and advanced meters that can record half-hourly power usage “presents an opportunity to improve the accuracy and efficiency of the settlement process”, claiming it will benefit customers financially.
The regulator now intends to launch a Significant Code Review (SCR), designed to speed up the reform and faciliate complex and significant changes to codes that energy companies are required to abide by.
Ofgem is also working on a different scheme to enable cost-effective elective HHS for profile classes 1-4.