Market-Wide Half-Hourly Settlement (MHHS)
MHHS is an industry reform led by Ofgem that will require electricity suppliers to settle all customer usage based on actual Half-Hourly (HH) data, rather than estimates. This means energy suppliers must buy and bill energy based on real-time, 30-minute usage data for every customer with a capable smart meter.
Why is MHHS being introduced?
The current system often relies on estimated energy usage, which doesn't reflect real-time demand. MHHS aims to modernise the energy market by using accurate data to improve efficiency, reduce costs, and support the shift to a smarter, low-carbon energy system.
How does MHHS benefit businesses?
- More Accurate Billing - Charges based on actual usage rather than assumptions.
- Optimised Tariffs - Access to more flexible and time-of-use tariffs that reflect when you use energy.
- Cost-Saving Opportunities - Businesses can shift usage to cheaper, off-peak times.
- Supports Net Zero Goals - Encourages smarter energy usage and enables better integration of renewables.
- Enhanced Data Insights - More granular consumption data to inform energy efficiency strategies.
Do all businesses need to take action?
Not immediately - but businesses with smart meters (particularly SMETS2) will be well-positioned to benefit. Over time, the rollout will impact all electricity users. If your business hasn’t upgraded to a smart meter yet, now is a good time to prepare for MHHS.
When is MHHS being rolled out?
Ofgem plans for full implementation of MHHS by October 2026. Preparations are already underway across the industry, and energy brokers can help ensure your business is ready.
Does MHHS affect contracts or switching?
No - MHHS doesn’t affect your ability to switch suppliers or negotiate contracts. In fact, with more accurate usage data, it could help secure more tailored and competitive deals.
For more information, refer to: https://www.mhhsprogramme.co.uk/