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Smart Metering, Smarter Markets and Smart Grids

By the end of 2020 the government wants smart meters rolled out to all domestic and small business customers. The rollout of smart metering is one of the biggest challenges to face the energy industry since privatisation. As an organisation that manages wholesale electricity settlement, ELEXON has a key role to play in helping the industry meet that challenge and ensuring settlement is flexed to realise the benefits that smart brings.

Click on the links below for more information.

  • Smart Metering

    BEIS (formerly DECC) put in place the regulatory framework for the rollout of smart metering. A mandated rollout of smart meters will commence in Autumn 2015. BEIS (formerly DECC) continues to refine the policy and framework for the rollout of smart meters. BEIS publishes updated information and consultations on its website.

    The end to end solution is shown below:

    End to End Smart Metering Model


    Key activities related to the smart rollout are shown below:

    Smart Meter Rollout Timetable

    Smart Energy Code (SEC)

    A new energy code has been established that sets out the obligations and rights for participants involved in the rollout and use of smart metering. You can find details about the SEC here.


    GB communications for smart meters

    BEIS established a new licensed entity, the Data and Communications Company (DCC), who will provide communications services between users of smart meters (e.g. energy suppliers and network operators) and the smart meters across GB. You can find information about the DCC here.


    Central Delivery Body (CDB)

    The energy industry has established the CDB to raise awareness and oversee the messaging and promotion of the benefits of smart meters so these are understood by consumers. You can find more information here.


    Installation Code of Practice

    As part of their licence conditions to facilitate the smart rollout energy suppliers have established a Smart Metering Installation Code of Practice (SMICoP). This document sets out the expected behaviours, restrictions and obligations on suppliers prior to, during and after a smart meter installation. You can find more information here.

  • Smarter Markets

    Ofgem has established a smarter markets programme to consider how the market arrangements can be improved as a result of the rollout of smart meters and its associated infrastructure for the ultimate benefit of consumers.

    You can find further information and Ofgem’s publications related to smarter markets here.

    Ofgem’s work is focused on four areas:

    • change of supplier processes
    • electricity settlement arrangements (see below)
    • regulatory and commercial framework around demand-side response
    • arrangements for consumer empowerment and protection

    Electricity settlement arrangements

    Ofgem is developing its proposition for how electricity settlement could be transformed in the long term and intends to publish its findings shortly. ELEXON continues to drive the work on short to medium term settlement reform, with industry, through the Profiling and Settlement Review Group (PSRG).

  • Smart Grids - read our latest insights

    ELEXON has produced a series of perspectives and reports working with external consultancies. Click on the links below to read the reports:

    We are using the shorter briefing notes and longer reports to help inform the pre-policy regulatory debates at BEIS and Ofgem. The DSR report and the Active Network Management reports have been shared with the Smart Grid Forum Commercial and Regulatory Workstream 6 and the Local tariff work with BEIS.

  • Latest News

    February 2014

    ELEXON’s response to the Ofgem Consultation on extending the existing smart meter framework for data access and privacy to Smart-Type Meters and Advanced Meters is published on the Industry Insights page.

  • 2013 News

    June 2013

    Ofgem has approved Modification Proposal P292 which will enable the changes to Supplier and Non-Half-Hourly Meter Operator Agent (NHHMOA) responsibilities for smart Meter Technical Details (MTD) proposed by the Department of Energy and Climate Change’s smart metering operating model.

    May 2013

    DECC announced that the mandated rollout of smart meters will now commence in late 2015 and complete by end of 2020. Click here for more information.

    Click here to view the key milestones that will be achieved during summer 2013 alongside the revised timeline.

    March 2013

    Ofgem has set out the next steps in progressing its Settlement Reform work in an open letter.

    ELEXON will continue to provide support to Ofgem in developing their thinking on longer term Settlement Reform alongside our work on the short and medium term through the Profiling and Settlement Review Group (PSRG).

    January 2013

    ELEXON responded to the DECC consultation relating to the first version of the Smart Energy Code. Our response is here.

  • 2012 News

    December 2012

    ELEXON has submitted the BSC Panel’s report to Ofgem setting out how it would undertake a Settlement Reform project, if asked to do so by Ofgem, as part of Ofgem’s Smarter Markets work. Click here to read the report.

    November 2012

    We held a seminar on Delivering Settlement Reform on Friday 2 November 2012Click here to view the presentation slides.

    October 2012

    Delivering Settlement Reform – A consultation on the review project & invitation to seminar

    At the end of July Ofgem asked the BSC Panel to provide them with a report by the end of this year setting out how the Panel and industry could undertake a review and reform of the Settlement arrangements (Supplier Volume Allocation) in support of Ofgem’s Smarter Markets work. Ofgem will decide how it wishes the work to proceed early next year.

    ELEXON is developing the report in conjunction with an advisory group. We have issued a consultation seeking views on the approach, scope, design, risks, issues and deliverables from such a review. Responses are invited by 9 November.

    If you have any questions or we would like to receive a copy of the consultation, please contact smart@elexon.co.uk or speak to David Jones on 020 7380 4213.

    Please see the consultation documents.

    Response to the DECC’s consultation on the second version of the Smart Metering Technical Specifications (SMETS)

    ELEXON provided a response to the DECC (now BEIS) consultation on SMETS2. Our answers centre on the management of metering requirements and delivering a centralised industry assurance regime, and the lessons we have learned in doing so.

    Please see ELEXON’s response.

    If you would like to discuss the issues raised, please contact us at smart@elexon.co.uk

    June 2012

    Response to DECC’s April Smart Metering consultations

    ELEXON has provided responses to the DECC consultations on:

    • Privacy and Data Access
    • DCC Licence and Application Regulations
    • Smart Energy Code
    • Consumer Engagement

    The responses can be seen on our Industry Insights page.

    If you would like to discuss the issues raised, please contact us at smart@elexon.co.uk.

    February 2012

    Smart Security Governance

    Robust industry governance is a key element in ensuring that the smart rollout is successful and data continues to flow into settlement. In our latest thought leadership document, we explore security governance for the GB smart solution. We consider questions such as the key roles and responsibilities of licensees, government bodies and the DCC – and how future changes will be addressed.

    Read Smart Security Governance for an outline of ELEXON’s views of how good security governance could be achieved as the industry moves forward into a smart world. If you would like a more detailed version of the paper, or to discuss the issues raised, please contact us at smart@elexon.co.uk.

  • 2011 News

    December 2011

    Chris Rowell, ELEXON’s Smart programme Director spoke at the Smart Metering Forum alongside other speakers including Charles Hendry, Minister for Electricity and senior figures from the NAO, energy suppliers, DNOs and communications service providers.

    Chris opened the session on Examining the Commercial Framework and shared ELEXON’s insight into how the DCC will develop, its differing activities and how the commercial framework can and should support this.

    ELEXON is working in this area to help design the lowest risk, most economic solution for the industry and our experience in delivering complex solutions through outsourced Service providers to the multiparty stakeholders is unparalleled.

    You can read Chris’s slides here.

    November 2011

    ELEXON provided a comprehensive response to DECC’s consultation on the ‘Detailed policy design and Commercial & Regulatory Framework for DCC’. Our response focuses on ensuring that DCC is set up for success and that it can effectively support existing industry processes to ensure the integrity of Settlements. We have shared our experience as experts in managing central industry rules, systems and changes through robustly managing change and contracts and engaging effectively with customers. Click here to read our response.

    ELEXON’s Smart Programme Director, Chris Rowell, will be discussing the DCC at the forthcoming Smart Metering Forum. Our presentation will appear here after the conference.


    At the SVG meeting on 1 November 2011, the SVG considered the interaction between the BSC Codes of Practice (CoPs) and the Smart Metering Equipment Technical Specification (SMETS). The SVG also considered the BSC requirements for early smart Metering Systems which the Supplier chooses to settle on a Half Hourly (HH) basis.

    Click here to read guidance on this issue.

    October 2011

    ELEXON responds to four smart related consultations:

    DECC’s – A call for evidence on privacy and data access
    DECC’s – Licence conditions for a code of practice for the installation of smart electricity and gas meters
    DECC’s – Draft licence conditions and technical specifications for the roll-out of smart metering equipment
    Ofgem’s – Commercial interoperability arrangements

    July 2011

    Our latest consultation will help identify the benefits and barriers to our customers settling energy volumes Half-Hourly as smart (or Advanced) meters are installed for customers in Profile Classes 1-4.

    You can also read our press release here.

    June 2011

    Read our latest thought leadership paper on Assurance in a Smart Metered World. We provide our expert views on options for an assurance framework under the new Smart Energy Code.

    We recently presented at Marketforce’s Smart Metering Update conference to share our views on setting up the DataCommsCompany for success.

    April 2011

    Read our response to the 2011 Ofgem Spring Package, which seeks to protect consumer interests as Suppliers start rolling out smart meters across Great Britain.

    Smarter settlement – making the most of tariff innovation. In this thought piece, we explore the use of innovative tariffs for consumers, how they are dealt with in settlement and how we can build on this in a smart enabled world.

    March 2011

    See the presentation we gave at March’s Future of Utilities and Smart Update Conference on Settlement in a Smart World. In this presentation we examine what the immediate challenges are for settlement and how they can be managed into the future.

    March 2011

    Read our press release on DECC’s response to the Smart Metering Implementation Programme Prospectus Consultation. We’re really encouraged by content of the response, particularly as several of the comments directly reflect suggestions we’ve made.

  • Past projects and consultations

    Over the past 3 years we have consulted widely with the industry on the issues of smart and advanced metering. Find out more about the modifications, papers and consultations that have been issued.