UK set to implement market-wide half-hourly settlement for SME’s

The UK has set a world-leading target of reaching net zero by 2050. To fulfil this, the government has outlined an ambitious plan to create a fairer and more environmentally friendly electricity system. A crucial aspect of this plan is the implementation of Market-wide Half-Hourly Settlement, which plays a vital role in providing the flexibility needed for the transition to net zero.

What is Market-wide Half-Hourly Settlement?

Market-wide Half-Hourly Settlement, backed by Ofgem and scheduled to take effect on 2nd July 2027, is expected to drive considerable changes in the electricity sector. Its main goals include creating a more affordable electricity framework, encouraging flexible electricity use, and helping small businesses save on costs. The roll out of the Market-wide Half-Hourly Settlement is phased, which is why we’re starting work now. It allows us to ensure a smooth transition and to begin delivering the benefits of Market-wide Half-Hourly Settlement as early as possible. In the past, considerable electricity consumers such as large companies had their usage recorded every half-hour, while small businesses often had theirs estimated. But now, with the widespread use of smart meters, both large and small businesses have the capability to monitor consumption more accurately.  Smart meters enable half-hourly settlement by continuously tracking electricity usage and sending data across the energy network, facilitating more efficient management of electricity distribution and demand balancing. It provides businesses of all sizes with accurate consumption data, leading to a more sustainable and cost-effective future.

Benefits of Market-wide Half-Hourly Settlement

The change will help to facilitate a smarter, more flexible system and empower smaller businesses to manage their electricity and take an active role in guiding the shift towards a greener electricity system as the industry moves towards decarbonisation.  

There are many benefits, for all market participants, including:

• More accurate and transparent billing, improved service delivery for all electricity customers  
• Better daily visibility of usage data, make informed decisions aimed at reducing electricity consumption  
• New innovative products based on time-of-use, offering customers opportunity to reduce costs  
• Enhanced network data, enabling the energy network to better forecast customer supply and demand  
• Advancing the UK’s progress towards sustainability and achieving net zero carbon emissions 

How it impacts your business

The transition will not affect your supply of electricity, but could open new ways to save electricity, directly affecting your usage and spending. There is no preparation needed for the upcoming change, but staying informed is essential to navigate the ever-evolving electricity landscape effectively. For businesses with a working smart meter already installed, the shift will be seamless as the update will occur automatically and readings will be altered accordingly, without any noticeable changes. However, for those without smart meters, the changeover to half-hourly settlement readings requires an upgrade. To ensure a smooth transition, we will reach out to customers without smart meters to arrange site visits for smart meter installation or other necessary upgrades before March 2026. Enabling all customers to experience the efficiency and precision of half-hourly settlement readings.

To help you understand this significant change, we’ve compiled a comprehensive list of FAQs. Here, you’ll find answers to common questions about how MHHS works, its benefits, and what it means for both businesses and suppliers. Dive in to get all the details you need about this groundbreaking development in the UK electricity market.