Smart Metering, Smarter Markets and Smart Grids
BEIS (formerly DECC) put in place the regulatory framework for the rollout of smart metering. A mandated rollout of smart meters started in Autumn 2015. By the end of 2020 the government wants smart meters rolled out to all domestic and small business customers.
As an organisation that manages wholesale electricity settlement, Elexon has a key role to play in helping the industry meet that challenges and that settlement meets the benefits that smart metering brings.
During our involvement in this programme of work we have consulted widely with the industry on the issues of smart and advanced metering.
Elexon also coordinated work around short to medium term settlement reform with the industry through its Profiling and Settlement Review Group (PSRG).
- More on the Profiling and Settlement Review Group (now ceased)
End to end solution
Smart Meter rollout
News and updates
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.
Ofgem Consultation on extending the existing smart meter framework for data access and privacy to Smart-Type Meters and Advanced Meters
Issue Date: 19 December 2013
Response Date: 19 February 2014
- Elexon’s response to Ofgem’s consultation on extending the existing smart meter framework for data access and privacy to Smart-Type Meters and Advanced Meters
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.
DECC announced that the mandated rollout of smart meters will now commence in late 2015 and complete by end of 2020.
- Dept of Energy and Climate Change: Smart Meters Programme Delivery Plan – 10 May 2013
- Key milestones for summer 2013 with revised timeline
Ofgem has set out the next steps in progressing its Settlement Reform 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).
Elexon responded to the DECC consultation relating to the first version of the Smart Energy Code.
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.
We held a seminar on Delivering Settlement Reform on Friday 2 November 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 [email protected]
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.
- Elexon’s response to DECC consultation on the second version of the Smart Metering Equipment Technical Specifications.
If you would like to discuss the issues raised, please contact us at [email protected]
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 [email protected].
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 [email protected].
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.
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.
- Elexon‟s response to DECC‟s Smart Metering Implementation Programme: a consultation on the detailed policy design of the regulatory and commercial framework for DCC (September 2011)
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.
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
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.
- Latest consultation
- Press release: Latest Elexon Consultation Examines Further Benefits from Smart Meters
We provide our expert views on options for an assurance framework under the new Smart Energy Code.
- Read our latest thought leadership paper on Assurance in a Smart Metered World
- Presentation at Marketforce’s Smart Metering Update conference – our views on setting up the DataCommsCompany for success.
This seeks to protect consumer interests as Suppliers start rolling out smart meters across Great Britain.
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.
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.
- 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.
BEIS and Ofgem guidance
BEIS smart meters guidance
The rollout of smart metering is one of the biggest challenges to face the energy industry since privatisation. BEIS continues to refine the policy and framework for the rollout of smart meters.
Ofgem Smarter Markets programme
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.
Ofgem’s work is focused on four areas:
- change of supplier processes
- electricity settlement arrangements
- regulatory and commercial framework around demand-side response
- arrangements for consumer empowerment and protection
Ofgem is developing its proposition for how electricity settlement could be transformed in the long term and intends to publish its findings shortly.
Codes and bodies
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.
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.
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.
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.