Ofgem has set the timetable for the Market-wide Half-Hourly Settlement programme.
What is the Market-wide Half-Hourly Settlement (MHHS) programme though? And what does it mean for your business? Find out how this critical reform will affect your business below.
Check out our FAQs to find out how your business needs to get ready.
What is MHHS?
MHHS will transform and modernise the UK's electricity market. It’s mandated by the energy regulator Ofgem and is the most significant reform since industry competition was introduced in 1998.
MHHS introduces new rules to improve the accuracy of how we measure energy consumption. Energy use will be settled in half-hourly intervals, providing a more precise picture of electricity usage.
The transition to MHHS is built on the deployment of smart meters and will enable a more intelligent and flexible energy system. This supports the UK's net zero targets, and helps grow a competitive retail market with products and services that prioritise your business.
MHHS is set to be implemented between October 2025 and July 2027. Ahead of this migration, there will be phases of updates to help ensure a successful completion.
What is settlement?
Energy generators and suppliers trade electricity in half-hourly periods. The settlement process balances the differences between the quantity of electricity suppliers buy and how much customers actually use.
For large consumers, like industrial companies, electricity usage has been measured in half-hour intervals for many years.
For smaller businesses and households, electricity usage has traditionally been estimated by taking regular meter readings (monthly, quarterly or yearly) and spreading them into half-hour periods based on average consumer usage.
These estimates are updated as meters are read, which means the current settlement process can take more than a year to complete.
With smart meters, exact consumption can now be recorded every half hour, allowing the entire electricity market to be settled every half hour. MHHS will make the settlement process more accurate and quicker, reducing the settlement process to around four months.
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Reduce future costs - Costs across the energy industry will be lower than they would be without these measures. So, while costs may increase, they won't rise as quickly, saving you money in the long run. GB consumers should see net benefits of £1.6bn–£4.5bn by 2045, predicts Ofgem.
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Smart products - Electric vehicles (EVs) and battery storage can be integrated into your business, enabling you to optimise energy usage.
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Opportunities to lower bills - With better data, suppliers can offer new and personalised products, time-of-use tariffs and flexibility schemes, predictive analytics and automation.
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Reduce energy waste - With improved energy usage data, you can lower energy bills by managing how you use energy. With greater visibility and control over energy consumption, our teams can help you choose the best options.
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Switching to smart metering - Smart meters will reduce manual readings and estimated bills.
Why do we need MHHS?
MHHS makes the electricity system more efficient, reliable, and cost-effective. It helps ensure that we have enough electricity when we need it, manages growing demand, reduces costs, and supports the use of renewable energy. Here’s why MHHS will help transform the energy market:
Keeping the lights on
MHHS helps ensure that there is enough electricity available when we need it. By providing accurate and timely information about how much electricity is being used, it helps keep the lights on and prevents blackouts.
MHHS is a game-changer for the energy industry and for you as a customer. For more information, speak to your account manager, visit the MHHS Programme website or click the button to talk to our team.