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26 June 2024

Market-wide Half Hourly Settlement (MHHS) Explained

The introduction of Market-wide Half-Hourly Settlement (MHHS) marks a notable change in the UK's energy sector. To help navigate this transformative shift, explore our FAQs where we provide insights into how MHHS will reshape the energy landscape. Discover how businesses can optimise their energy usage and potentially benefit from more accurate billing practices. Stay ahead of the curve with clear, expert answers to ensure you're prepared for the future of energy in the UK.

Market-wide Half-Hourly Settlement (MHHS) is set to bring a major change to the UK energy landscape from 7th December 2026. Supported by Ofgem, this large industry shift involves using smart meters to record electricity usage every half hour. 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 energy suppliers. Dive in to get all the details you need about this groundbreaking development in the UK energy market.

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Market-wide Half-Hourly Settlement is a new initiative, backed by Ofgem, set to take effect on 7th December 2026. It aims to transform the energy sector by creating a more affordable electricity framework, encouraging flexible energy use, and helping small businesses save on costs. This system uses smart meters to record electricity usage every half-hour, providing accurate consumption data.

Market-wide Half-Hourly Settlement is scheduled to take effect on 7th December 2026.

Ofgem, the Office of Gas and Electricity Markets in the UK, is overseeing the implementation of Market-wide Half-Hourly Settlement.

This initiative is crucial for the UK’s goal of reaching Net Zero by 2050. It supports the transition to a greener energy system by providing the flexibility needed to manage energy more effectively, reducing carbon emissions, and fostering a fairer and more environmentally friendly energy market.

Smart meters track energy usage in real-time and send this data to suppliers every half-hour. This allows suppliers to manage energy needs more accurately, leading to better service delivery, more transparent billing, and the development of innovative, cost-saving products based on time-of-use.

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 energy consumption
  • New innovative products based on time-of-use, offering customers opportunity to reduce costs
  • Enhanced network data, enabling suppliers to better forecast customer supply and demand
  • Advancing the UK’s progress towards sustainability and achieving Net Zero carbon emissions

This transition can open new ways to save energy, directly affecting your energy usage and spending. For businesses with smart meters, the shift will be seamless, with updates occurring automatically. Businesses without smart meters will need to upgrade to enable half-hourly settlement readings.

If your business does not have a smart meter, we will contact you to arrange for a site visit to install a smart meter or perform necessary upgrades before March 2026. This ensures that all customers can benefit from the efficiency and precision of half-hourly settlement readings.

By enabling more accurate energy usage tracking and fostering flexible energy use, Market-wide Half-Hourly Settlement helps reduce overall energy consumption and carbon emissions, contributing significantly to the UK’s goal of achieving Net Zero by 2050.

Energy suppliers will benefit from enhanced network data, allowing them to better forecast customer supply and demand, improve service delivery, and develop innovative products that encourage energy efficiency and cost savings.

Yes. The top line of the MPAN will be changing. The Meter Timeswitch Code (MTC) and Line Loss Factor (LLF) will be removed. These will be replaced with the Standard Settlement Configuration (SSC) and Distribution Use of System (DUoS) Tariff ID.

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