How Global Settlement will work
Currently, a limited number of retailers carry the cost of Unaccounted For Energy (UFE). UFE is electricity that has been consumed, but cannot be traced to a particular meter. Examples of activities which contribute to UFE might include lighting for traffic signals, streets or parks. Historically, before consumer competition was introduced, UFE was billed to the local area retailer. This is known as "Settlement By Difference". When global settlement commences on 1 May 2022, all retailers will share the cost of UFE.
Comparison of settlement by difference versus global settlement.
Current retailer settlement arrangements - settlement by difference
Retailer settlement arrangements following 1 May 2022 – global settlement