How does metering work and who’s responsible for what?

It’s 35 years since the UK deregulated its electricity sector with the Electricity Act 1989. The aim was to introduce more competition in the market and drive down prices for power consumers. While most would agree the former has happened, many argue that power prices remain too high.

To discover more about the pros and cons of deregulation, read this article.

For businesses and domestic consumers, the Act meant that geographic location no longer determined either your supplier or the party responsible for installing and managing your meter(s). This change provided power consumers with an array of choices – they could get electricity from any supplier, or even from another country, if they wanted to.

Separating tasks such as getting on supply and having a meter installed led to more suppliers and the emergence of newly formed entities too (e.g. meter operators, or MOPS). This presented opportunities for entrepreneurial individuals and businesses, but also added some complexity for users – not least, concerning who was involved and responsible for the different stages.

Who’s involved?

Here’s an overview of the key players involved:

Suppliers and the grid

An import meter tells you how much electricity you’ve taken and used from the grid. Organisations that generate their own power will have an export meter to show how much electricity they’re spilling out to the grid.

?Either way, it’s important that the volumes in and out are recorded correctly. Electricity suppliers require half-hourly data from the meter, so they have an accurate profile of the organisation’s consumption (and/or export volume).

?The precision of the data ensures that the grid doesn’t become underloaded or overloaded (imbalanced). It also makes sure you pay the right amount for the electricity you use, and receive the correct payment for the self-generated power you sell.

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Meter operators (MOPS)

Installing and maintaining your meter comes with its own contract – a MOP agreement. It’s also possible to arrange MOP agreements to cover the telecoms service needed to send information to the Data Collector and Data Aggregator (see below).

MOP contracts are usually for five years and could cost ￡250 – ￡600 per year, depending on the type of supply. However, metering fees can be based on a range of variables including technology types, the geographic location of the site, the volume, and the voltage of the power connection.

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Distribution Network Operators (DNOs)

DNOs own and operate the wires, cables, poles, transformers, and other equipment that take electricity from the high voltage network of the National Grid to homes and businesses. Several

DNOs are responsible for the UK’s regions. You can use your postcode to find which one’s responsible in your area using the search tool of the Energy Networks Association (ENA).

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Data Collector (DC) and Data Aggregator (DA)

The DC retrieves the half-hourly meter readings from sites that use electricity, and the DA then aggregates the half-hourly data so validation can take place before billing. This validation process is crucial for getting accurate bills for consumption, and the right payments for power produced. You can choose a DC, although they must have accreditation plus a contract with the supplier, which appoints the DA.

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What’s next?

For metering enquiries, please get in touch, or to read more insights, head to our website.