See the systems behind the system. This route explains how control rooms, settlement, smart metering, and data standards work together so you can understand why energy operations increasingly depend on software quality as much as physical assets.
Start with the stack and the live infrastructure map, then move into MHHS, public APIs, metering, and governance so you can place each system in the right operational context.
Public APIs & Data Portals
The top of the stack. Public APIs from Elexon, NESO, and the Carbon Intensity team provide near-real-time access to generation, demand, pricing, and carbon data. Anyone can query these for free. The Elexon BMRS API alone publishes over 150 different data feeds.
Settlement Systems
Settlement calculates how much each supplier owes based on actual consumption versus contracted positions. MHHS will move everything to actual half-hourly settlement, requiring a complete rebuild of the settlement infrastructure. Settlement runs progress through Initial, SF, RF, DF, and Final stages.
Data Aggregation & Processing
Data from millions of meters is collected, validated, and aggregated. Data Collectors retrieve readings. Data Aggregators aggregate by supplier and Grid Supply Point. Under MHHS, these roles are being consolidated into new Smart and Advanced Data Services. Around 20 registered agents process ~1.4 billion readings per day.
Communication Networks
The DCC operates the smart metering communication network. SMETS2 meters connect via cellular networks (urban, via Telefonica) and long-range radio (rural, via Arqiva). Data is encrypted end-to-end with each device having its own security credentials. The HAN protocol uses Zigbee / DLMS-COSEM.
Smart Meters (Physical Layer)
At the bottom of the commercial stack sit the physical meters. A smart electricity meter records consumption in half-hourly intervals and communicates readings automatically via the DCC network. The gas meter usually sends readings to the electricity meter via Zigbee, which relays them to the DCC. Over 40 million installed, with the current standard being SMETS2.
Operational Technology (OT) Networks
Below the commercial metering layer sits the operational technology that network companies use to monitor and control the physical grid. SCADA systems, RTUs, intelligent electronic devices at substations, and increasingly IoT sensors on low-voltage networks. Governed by NIS Regulations with air-gapped security. Protocols include IEC 61850, DNP3, and Modbus.
Four layers to keep in mind
System operation
NESO and network control room systems monitor state, dispatch flexibility, and manage outages and constraints.
Market and settlement
Elexon and associated market systems convert metered and contractual positions into imbalance and settlement outcomes.
Metering and communications
Meters, DCC communications, and supplier data flows determine whether consumption is visible accurately and in time.
Standards and interoperability
CIM, governance processes, and data quality frameworks make cross-organisation exchange workable at scale.
How a meter reading becomes a settlement outcome
Market-wide half-hourly settlement
MHHS is the plumbing change that makes a smarter retail and flexibility market credible. Without it, the system cannot price actual consumption patterns well enough.
Why it matters
Settlement moves closer to when customers actually consume electricity.
Suppliers face stronger incentives to shape demand rather than socialise it through profiling.
Domestic flexibility becomes easier to value because interval data quality improves.
Tariff innovation becomes more credible when settlement and metering quality improve together.
Current verified status
Elexon reported on 16 February 2026 that more than two million meters had already transitioned to MHHS. The current milestone timetable points to around 80% migration by October 2026, migration completion by 7 May 2027, and programme cutover by 2 July 2027.
● Verified Mar 2026
MHHS migration timeline
Public APIs
GB energy institutions publish several widely used public APIs and open data services. That matters because they make scrutiny, research, and software development much easier.
Smart meters matter because they turn customer consumption from a billing estimate into an operational and settlement signal.
Installed base
0
million meters
Smart and advanced meters in operation in homes and small businesses in the latest official DESNZ quarterly publication.
● Verified Mar 2026
Smart mode
0
million+ in smart mode
Meters operating in smart mode in the same DESNZ release. The next official quarterly update was not yet published at review time.
● Verified Mar 2026
SMETS1 and SMETS2
The difference is not just meter age. It is whether the communications and interoperability model supports switching, authorised access, and durable system integration.
Why data quality matters
Poor interval data weakens settlement, distorts tariff design, and reduces confidence in demand flexibility. Metering is not a side system. It is one of the foundations of the market model.
L2
The SMETS1 problem explained
First-generation smart meters (SMETS1) were designed before the central communications infrastructure was ready. Each supplier built its own proprietary connection, which meant that if you switched supplier, your smart meter would go dumb and revert to estimated readings. SMETS2 meters connect through the DCC's central network and work regardless of which supplier you are with. The DCC has been enrolling SMETS1 meters onto its network to fix the problem, but the process has been slow and some older meters will never be fully compatible.
Data governance
As the system becomes more digital, permissioning, standards, cybersecurity, and interoperability become operational issues rather than background administration.
Ofgem's digitalisation governance position still reads as a transition to an enduring coordination model rather than a completed institutional settlement.● Verified Mar 2026
Access control
The energy system needs data sharing, but not unrestricted sharing. Roles and permissions matter because these systems sit close to critical national infrastructure.
Standards
Common models such as CIM matter because they reduce translation overhead between market and network tools owned by different organisations.
Security and resilience
Digital dependence makes resilience planning, vendor control, and cyber hygiene part of operational reliability rather than a separate IT conversation.
Methodology and sources
Last reviewed: 17 March 2026
The route keeps the React digital infrastructure component but now anchors the page shell to current first-party material on MHHS, smart metering, NESO data services, DCC, and Ofgem's digitalisation governance work.