Half Hourly Settlement

We’re seeing huge volatility in the energy market, driven primarily through geopolitical events that’s had a huge impact where we’ve seen 30 suppliers exit the market with 2.7 million customers affected by those outcomes. Fundamental reasons why the energy suppliers have had many challenges is due to demand forecasting primarily from the domestic market space. This has been through the lack of available technology, but we are seeing with the introduction of smart metering more regulation around half hourly settlement that gap narrowing as we move towards the end of the rollout in 2025 and beyond.

The SMS half hourly settlement service is so unique. Our team of experts are well established on how to work with energy data. When we make recommendations we’re making them from a position of knowledge.

SMS has been an industry agent for half hourly settlements for MOP, DC and DA since 2012. Our team of analysts would load the half hourly data into our unique elective optimiser system, which calculates the savings that could be made if those suppliers were settled half hourly. The team would then take the output of that and work with the suppliers through their change of measurement class. Consumption patterns can change over time and data points can churn in and out of portfolios. This isn’t a one-off exercise that we do. We would wash the data through that system regularly to make sure that the supplier’s portfolio is always at optimal performance.

Between now and the mandated half-hourly settlements in 2025, there’s two main objectives really for energy suppliers. One is to make sure that they unlock those savings where they have a choice at the moment whether to settle half hourly or not, and the second is to make the most of this period really to test different tariff options and designs and give the end consumer greater value.

We recently worked with a UK energy supplier to analyse our portfolio. We were able to demonstrate to them a saving of £184 per site which when you add that up across a portfolio went well into the millions worth of savings that they were able to unlock.

As we drive towards a much more diverse energy system, the ability to settle the energy and trade the energy on a half hourly interval basis is incredibly important. Our estimations are that through trading through half hourly settlements energy suppliers across the global smart meter population in the UK could save in excess of £300 million. SMS are already at the heart of the smart meeting and data industry, so who better to trust with the delivery of half an hourly settlement?