What is MHHS and how will affect your business?

Energy News 17th January 2025

Are you hearing the term MHHS when it comes to electricity?

Wondering what it is and what it means for your business?

We’ve got you covered. In this article we will dive into all these topics, breaking down the jargon and highlighting key information you need to be aware of. Please note – information is still being confirmed, so we’d recommend bookmarking this page and referring back for updates as and when they’re released.

What is MHHS?

Market-Wide Half-Hourly Settlement (MHHS) is a programme of reforms led by energy regulator, Ofgem and it’s going to modernise how electricity consumption and generation are going to be measured and settled in the electricity market. The great news is that the whole industry is working together to make this happen.

When is this going to take place?

At the time of writing this article, it is expected the changes will be going live between September 2025 and July 2027.

Why is it being introduced?

Firstly, let’s go back and look at the background of settlement in the electricity markets.

Settlement in electricity markets is the process of reconciling the differences between forecasted (predicted) and actual energy usage or generation. It ensures all market participants are paid or charged accurately for their activities. Historically, this settlement was based on estimated profiles for most consumers due to the limited metering data available. Larger consumers, however, who had advanced meters would have half-hourly settlement.

This causes limitations and challenges because:

1. Inaccuracy of matching demand and supply
2. Provided limited incentives for consumers to shift energy use to off-peak times
3. It’s hindered the integration of renewable energy and demand-side flexibility

So, as you can see something needs to evolve and change. This is what MHHS aims to do.

What will change?

The purpose for MHHS is to provide a more accurate picture of electricity consumption across the UK based on Half-Hourly (HH) data provided by modern meters.

Looking at this closely it will cover:

Half-Hourly Data Utilisation

• Smart meters collect consumption and generation data in half-hourly intervals.
• Actual data replaces reliance on generic profiles for settlement.

Market-Wide Implementation

• All customers, not just large industrial users, are included in the half-hourly settlement process.
• Applies to residential and small business customers with smart meters.

Support for Demand-Side Flexibility

• Encourages consumers to shift energy use to times of lower demand or higher renewable generation.
• Reduces reliance on fossil-fuel peaking plants.

Enhanced Accuracy and Fairness

• Settlement is based on actual usage, ensuring fair allocation of costs and revenues.

How will MHHS affect my business?

Currently the details for businesses will be worked out as the programme is delivered and while it will impact all industry consumers, most of the changes that will happen will take place behinds the scene. The exact impact on your business will depend on the type of meters and services you use. Your suppliers should be in touch directly with you as these changes take place.

Once your MPANs are migrated to MHHS you may notice practical changes:

• Settlement changes: As highlighted above, you can expect more accurate settlement based on HH data for all your meters and a new format for supply numbers
• Changes to billing: Updates to bills, quotes and contracts – possible cost changes due to the difference between NHH and HH metering and settlement
• New terminology: MPANs reclassified into new segments – ‘Smart’, ‘Advanced’ or ‘Unmetered’; New Metering and Data Services Providers to replace existing agents (‘MOP’, ‘MEM’, ‘DA’, ‘DC’)

What can I do now?

In order to get prepared for MHHS you will need to have smart or AMR meters to have access to the benefits that MHHS will bring.

New smart meters can provide precise and timely insights by recording energy consumption data up to every half-hour. This is different from traditional NHH (Non Half-Hourly) meters.

If you need help getting your business prepared for MHHS, please get in touch with our team who can provide guidance on the next steps.