Ofgem has published an open letter to smaller suppliers seeking information on the possible introduction of half-hourly electricity settlement for households.
The letter highlights several key areas which Ofgem is particularly keen to receive feedback on in relation to the electricity settlement reform significant code review.
These include the impacts on:
- IT
- Operation
- Aggregation
- Balancing
- Customer messaging
- Competition
- Product innovation
Ofgem proposed the significant code review (SCR) in July 2017 to look at the scope for using accurate consumption data from smart meters to improve settlement quality.
The regulator says it expects market-wide electricity settlement reform will “expose suppliers to the true cost of supply across the day” and that it will strengthen the incentives on them to help their customers shift consumption to times when electricity is cheaper to generate or transport.
Submitted responses will be used to inform the draft impact assessment which will be up for consultation as part of developing the full business case for settlement reform.
The deadline for all respondents is 5pm on 7 October.