Code administrator Elexon has brokered a cross-sector agreement about the recovery of the radio teleswitch service (RTS) operational costs.
A decision has been reached that from March 2020, the scheme will be funded directly through the Balancing and Settlement Code (BSC), which Elexon manages.
The RTS allows energy suppliers to offer time-of-day electricity tariffs using radio signals, broadcast through existing BBC infrastructure.
There are currently around 1.4 million customers with RTS metering, concentrated in the East Midlands and Scotland.
Previously the RTS operating costs were funded by the Distribution Network Operators (DNOs) through the Energy Networks Association. However, that contract ends in March and for the past 18 months all sides have been considering a solution to keep the RTS system operational until at least March 2021.
Mark Bygraves, Elexon chief executive, said: “Following discussions with Energy UK, in July 2019 Elexon convened industry representatives to agree a solution for operational RTS costs to be recovered from BSC parties, post April 2020, through existing BSC cost recovery arrangements.
“We then worked with industry participants through the issue workgroup to determine the most optimum solution for parties.
“The speed with which a solution was arrived at demonstrates how as an expert code manager, Elexon works closely with industry to address issues affecting Parties. This particular solution, agreed in under two months, will use existing systems and ensure consumers continue to benefit from the RTS service.”