Book a meeting
The Market-wide Half-Hourly Settlement (MHHS) is a transformative initiative led by Ofgem, aimed at modernising the way electricity consumption is measured and billed in the UK. This blog will provide an overview of what MHHS is, its implications for businesses, and the key timelines you need to be aware of.
What is MHHS?
MHHS is a significant reform in the energy sector that will change how electricity usage is recorded and settled. Traditionally, electricity consumption has been measured on a Non-Half-Hourly (NHH) basis for most businesses, meaning that usage data is aggregated over longer periods. With MHHS, all electricity meters will record and report consumption data every half hour, providing a more accurate and detailed picture of energy use.
Why is MHHS Being Introduced?
The primary goal of MHHS is to enhance the accuracy of electricity consumption data. This improvement will enable better demand forecasting, more efficient energy use, and the development of innovative tariffs and services. By encouraging businesses to shift their energy usage to off-peak times, MHHS supports the transition to a more flexible and sustainable energy system.
What Does MHHS Mean for Your Business?
For businesses, MHHS will bring several changes and opportunities:
-
More Accurate Billing: With half-hourly data, your energy bills will reflect your actual consumption more precisely, potentially leading to cost savings.
-
New Tariffs and Services: Energy suppliers will be able to offer new products, such as time-of-use tariffs, which can help you save money by using energy during off-peak periods.
-
Enhanced Energy Management: Access to detailed consumption data will allow you to better understand and manage your energy use, identifying opportunities for efficiency improvements.
Key Timelines
The implementation of MHHS will occur in phases:
-
October 2025 - March 2027: All businesses will transition to MHHS over this 18-month period.
-
July 2027: Full implementation of MHHS across the UK.
Preparing for MHHS
To prepare for MHHS, businesses should consider the following steps:
-
Upgrade Meters: Ensure that your meters are capable of recording half-hourly data. This may involve upgrading to smart or Automatic Meter Reading (AMR) meters.
-
Engage with Your Supplier: Discuss with your energy supplier how MHHS will affect your billing and what new tariffs or services may be available.
-
Monitor Consumption: Start analysing your energy usage patterns to identify potential savings and efficiency improvements.
Conclusion
The Market-wide Half-Hourly Settlement is a major step forward in modernising the UK's energy system. By providing more accurate data and encouraging flexible energy use, MHHS offers significant benefits for businesses. Stay informed and proactive to make the most of this transition.
If you would like to know more about data management or how you can make your business more energy efficiency, please send us an email at [email protected] or call us on 03330 433 233.
Stay up to date and subscribe
