No limits: Plan unveiled for move to market-wide HHS
The Design Working Group (DWG) has published its plan for how the electricity sector could move towards half-hourly settlement (HHS) for the whole market. The Transition Approach Plan seeks to keep the changes that different types of supply point will face separate from one another, in order to prevent delays. In this Chart of the Week, we look at how the DWG thinks this can be accomplished.
HHS has existed in the non-domestic electricity market for some time now, but it is widely regarded that a move to this for the whole market will bring benefits across a range of areas. It should make settlement faster and more accurate, as well as enabling new, innovative products and services in the sector that take advantage of smart meter data. It can also improve network management by providing more accurate data as to when and how electricity is consumed.
The DWG’s Target Operating Model envisages three separate services being developed for HHS: one for unmetered supply, one for advanced meters, and one for both smart meters and “non-smart” meters, i.e. traditional meters and smart meters operating in traditional mode. It believes keeping them separate should prevent the advanced and unmetered supply services – which will largely be evolutions of the current process for these supply points – from being held back by the more significant reforms for smart and non-smart meters.
Figure 1 shows the transition plan steps for each, with the smart and non-smart service looking deceptively simple. However, it involves around 20 times as many meter points migrating as the other two services combined. The DWG has not proposed timescales for the transition, but noted there would need to be extensive penetration of smart meters into the market before it could begin.
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