What is Market-Wide Half-Hourly Settlement (MHHS), and what does it mean for my business?

The energy industry in the UK is on the brink of its biggest transformation since the mid-90s, with the introduction of Market-Wide Half-Hourly Settlement (MHHS).

The changes are being introduced in response to a far-reaching review by industry regulator, Ofgem, and are designed to deliver more a cost-effective management of fluctuations in supply and demand –  and therefore, cost savings.

With full implementation scheduled for between April 2025 and October 2026, MHHS is set to completely overhaul electricity data metering. This means transitioning all energy consumers to a Half-Hourly metering model, enabling more accurate and transparent billing.

But what exactly is MHHS, how will it work and what does it mean for your UK business? World Kinect’s UK energy experts will guide you through this major industry reform in our article.

What is MHHS and when will it come into effect?

Market-Wide Half-Hourly Settlement (MHHS) is a new framework that uses Half-Hourly consumption data to improve the accuracy of electricity consumption pricing across the UK. 

This process will more accurately check if a supplier has purchased too much or too little electricity, and adjust payments accordingly. 

Currently, settlements are based on either estimated consumption profiles; Non-Half Hourly or actual consumption data Half-Hourly.

MHHS aims to change that. The new Half-Hourly settlement model will cover all electricity users: domestic and commercial, including Half-Hourly, Non-Half Hourly, and unmetered. As a result, the market will no longer differentiate based on settlement types.

Instead, the focus will shift to the type of meter installed. This mandatory reform is set to begin from April 2025. Suppliers must migrate meters by October 2026.

Key changes introduced by MHHS

1. A transition to Half-Hourly Metering for all consumers

The shift from Non-Half Hourly to Half-Hourly settlement will impact your data collection, billing, and settlement processes. All electricity supplies will be included, and the transition will require any business not already on a Half-Hourly metering system to switch to one.

2. More accurate consumption data

MHHS will demand more precise consumption data from all energy users. This focus on accuracy will help more efficient energy distribution, crucial to bringing renewables into the grid and market fairness. 

Under the new standards, 99 per cent of actual data must be delivered for settlement within 5-7 working days, a significant change from the current 14-month window for Non-Half Hourly sites.

Why is MHHS being introduced?

MHHS is part of the wider plan for the UK to reach net zero by 2050. 

The introduction of Half-Hourly data will enable grid operators to better predict and manage energy demand. This will account for the intermittent nature of renewable energy sources as they are introduced to the power grid.

Additionally, MHHS can help empower businesses to adjust usage patterns during peak periods. This transition is expected to encourage innovation, leading to smarter, more flexible energy systems and ultimately save money.

What does MHHS mean for my business?

1. More accurate energy costs and billing

MHHS will bring about more accurate bills and provide a clearer understanding of energy usage patterns. With Half-Hourly data, businesses can adjust their energy usage based on real-time rates, potentially leading to cost savings.

2. Operational changes and compliance requirements

The important thing to note is that MHHS is mandatory and will take place automatically. Adopting a chosen Half-Hourly metering settlement means you can comply with new regulatory requirements whilst benefitting from the best rates possible.

How can World Kinect support my business through the transition?

World Kinect is here to help guide your business to Half-Hourly metering and we offer full support to help you monitor your usage on a Half-Hourly basis. 

With years of experience under our belt providing power, natural gas and water services, as well as Half-Hourly and Non-Half Hourly metering services for our customers, you can be confident in our expert and thorough advice and support. 

Here’s how we can help you today:

•    Energy and metering advisory services: Our team can help your business understand your new obligations under MHHS.
•    Metering solutions: We can offer advanced automatic meter reading installations to ensure you are prepared for the transition, and help your business access the optimal opportunities arising from these changes.
•    Data services: We provide full support for managing your Half-Hourly data, helping you stay compliant and optimise energy use. Our data portal helps you manage your Data Collection agreements, giving you control over and visibility of your energy patterns.

Contact us today for expert support, and to learn how we can help your business thrive under the new MHHS framework.

FAQs on the Market-Wide Half-Hourly Settlement

1. Why is MHHS being introduced?

The introduction of MHHS is designed to offer significant cost savings, of between £1.5 and £4.5 billion by 2045. More precise and transparent billing insights will enable control of energy consumption patterns, allowing customers not only to take advantage of innovative and off-peak tariffs, but also help support goals to lower carbon emissions.

2. What are the benefits of MHHS for my business?

MHHS offers potential cost savings, better control over energy usage, as well as access to innovative tariffs. With more accurate billing and insights, you can optimise your energy consumption patterns.

3. Will I need to change my current metering system?

Depending on your current metering set up, you may need to upgrade your metering capabilities. World Kinect can help arrange Advanced Metering (AMR) installations to ensure a seamless transition to the new system. 

Talk to us if you’re not sure whether this applies to you.

4. How will MHHS affect my energy bills?

Expect more precise billing based on actual consumption data, which could offer cost-saving opportunities, especially if you can adjust your usage to off-peak times.

5. What steps should I take to prepare for MHHS?

Start by understanding your meter portfolio. If you’re struggling with where to begin, seek support from trusted partners, who can advise you on the next steps, including upgrading to an Advanced (AMR) meter.

6. How can World Kinect assist me in this transition?
We provide comprehensive support, from advisory services to metering solutions, ensuring your business is fully prepared for MHHS.

Get in touch with us to learn more.