Competition Law and Strategic Foresight: Platform Market Power

1. Introduction

Data format standardisation in energy systems means creating common rules for how energy information is recorded, stored, exchanged and understood by different electricity-sector organisations.

Modern energy systems involve smart meters, generators, batteries, electric vehicles, suppliers, distribution network operators, system operators and regulators. These organisations often use different digital systems. If their data formats are incompatible, information cannot easily move between them.

Therefore, standardised data formats are important for creating a connected, efficient and competitive energy system.

2. Meaning of Data Format Standardisation

A data format is the structure in which information is presented.

For example, different organisations may record electricity consumption using different:

units;

time formats;

data fields;

measurement intervals;

identification systems; and

communication protocols.

Standardisation creates common technical rules so that one system can understand information produced by another system.

For example, a smart meter operated by one company should be capable of sending properly structured information to an authorised supplier or network operator.

3. Importance for Smart Meters

Smart meters generate large amounts of electricity data. Standardised formats make it easier to:

collect meter readings;

transfer information between suppliers;

calculate electricity bills;

support switching;

analyse consumption;

operate demand-response services; and

detect technical problems.

Without common standards, changing suppliers or transferring data between market participants can become slow and expensive.

4. Interoperability

One of the main objectives of standardisation is interoperability.

Interoperability means that different technologies and organisations can work together.

For example:

Smart meter → Data network → Supplier → Consumer

should operate using compatible data structures.

In the European Union, electricity-market legislation supports interoperability and access to electricity data as part of the development of digital and consumer-centred energy markets.

5. Competition and Market Entry

Data standardisation can also improve competition.

If one large electricity company uses a proprietary data format that competitors cannot easily understand, smaller companies may face additional costs when entering the market.

Common standards reduce these technical barriers.

Therefore, standardisation can help independent:

aggregators;

energy-service providers;

demand-response companies;

electric-vehicle operators; and

flexibility providers.

participate in electricity markets.

6. Data Accuracy

Standardisation is also important for accurate measurement.

Electricity data must identify things such as:

the quantity of electricity;

time of measurement;

location;

direction of electricity flow; and

relevant meter or asset.

If different organisations interpret the same data differently, errors can occur in billing, balancing and settlement.

For example, if one system records electricity in kilowatt-hours while another incorrectly interprets the information using another unit, financial calculations may become inaccurate.

7. Cybersecurity

Data-format standards also have a cybersecurity dimension.

Energy information should be transferred through secure systems with appropriate authentication and access controls.

Standardisation should therefore not only make information understandable; it should also support secure data exchange.

However, common standards can create systemic risks if one widely used protocol contains a major security weakness. Therefore, standards should be regularly reviewed and updated.

8. Relevant Case Laws

SSE Generation Ltd v Competition and Markets Authority [2022] EWCA Civ 1472

The case concerned the operation of the electricity balancing and settlement framework. It demonstrates the importance of common regulatory rules and standardised arrangements for participants in the electricity market.

Commission v Belgium, Case C-767/19

The CJEU considered the legal framework surrounding electricity and gas transmission-system operation and regulatory independence. Although the case was not specifically about data formats, it demonstrates the importance of common EU electricity-market rules and properly organised system functions.

Vereniging Energie-Nederland and Others v ACM, Case C-105/17 P

The case concerned electricity-market regulation and the relationship between national regulatory measures and EU energy-market rules. It illustrates how common regulatory frameworks can influence the functioning of electricity markets.

9. Legal and Regulatory Framework

Data standardisation is supported through technical standards, market codes, regulatory requirements and industry arrangements.

In Great Britain, the Balancing and Settlement Code (BSC) provides common rules for electricity balancing and settlement. Similarly, smart-meter arrangements use defined technical and communication standards to ensure that different participants can interact with the system.

The Smart Energy Code (SEC) also provides rules governing the smart-meter communication framework.

These arrangements demonstrate that energy-data standardisation is not merely a technical matter. It is also a legal and regulatory requirement.

10. Challenges

Several challenges remain:

different legacy systems;

high cost of upgrading technology;

international differences in standards;

cybersecurity threats;

rapidly changing technologies;

lack of technical skills; and

balancing standardisation with innovation.

If standards are changed too frequently, businesses may face additional costs. If standards remain unchanged for too long, they may become outdated.

11. Conclusion

Data format standardisation is essential for modern energy systems because it allows different organisations and technologies to communicate using common rules.

It improves interoperability, competition, data accuracy, smart-meter operation, market settlement and flexibility services. At the same time, standards must protect cybersecurity and consumer information.

Therefore, energy regulators should develop standards that are clear, interoperable, secure, technology-neutral and regularly updated. A well-designed standardisation framework helps transform separate digital systems into one more coordinated and efficient energy system.