An alternative approach to Market-Wide Half-Hourly Settlement
Centralised or distributed? What is the best way for your energy data to be accessed under market-wide half-hourly settlement?
Led by Ofgem, Market-wide Half-Hourly Settlement (MHHS) is the largest, most fundamental change to the electricity market since the introduction of competition in energy retail in 1998. It will place stronger incentives on suppliers to develop and offer tariffs that promote load shifting on an unprecedented scale, which will reduce overall peak demand and enable a smarter, more flexible electricity system. The actual consumption data recorded every 30 minutes by AMR and SMETS meters is the key enabler. The largest consuming non-domestic sites are already treated this way and MHHS will bring the domestic and smaller non-domestic markets into alignment.
The question of how HH data should be stored and accessed under MHHS is important to get right – the wrong approach could lead to increased costs and reduced efficiency. In their Draft Impact Assessment consultation, Ofgem sought views on this issue and outlined their own minded-to position, “non-aggregated data should be made available to Balancing and Settlement Code (BSC) central settlement systems for the purpose of calculating the settlement imbalance.”
In their response to the consultation, the Association of Independent Meter and Data Agents (AIMDA), of which Stark is a member company, identified that this would introduce a fundamental inefficiency to the settlement arrangements. If implemented, it would require half-hourly data for 30 million metering systems to be transferred to central systems (Elexon) daily.
Compared to sending aggregated data on a periodic basis, this would be significantly more expensive. Moreover, it would be an unnecessary duplication of data storage costs as the data would have already been processed and stored at the supplier agent level.
Central systems would certainly benefit from targeted access to non-aggregated data to support specific subsidiary processes, like secondary calculations, disputes, performance assurance and market investigations. However, this can be achieved in a much more efficient and cost-effective way.
AIMDA’s alternative target operating model diagram
You can read AIMDA’s full response and their alternative TOM paper at the following links:
AIMDA’s response: https://www.aimda.co.uk/mhhsiaconsultationresponse
Alternative TOM paper: https://www.aimda.co.uk/alternative-target-operating-model
Stark’s offering has evolved over the last 39 years, but we have always been driving change and innovation for your benefit. Our high quality data and superior energy analytics empowers our customers to get on with achieving real energy savings, fast.
If you are a business energy consumer and want to give us your support as AIMDA continues to consult with the government then please get in touch.