Market-wide Half Hourly Settlement Update - Jan. 2025

New developments and summary of the Market-wide Half Hourly Settlement (MHHS).
New Developments
On 29 November 2024 UK Regulator - Ofgem issued a statement confirming that they had approved a Programme Change Request to extend the timetable for completion of MHHS by 6.5 months. The primary reason for this delay is to ensure all new software systems required are robust and fully tested simultaneously.
Ofgem have stated they are determined there will be no further delays and in early 2025 they intend to introduce a package of further regulatory measures to expedite the delivery of MHHS and reduce the risk of any further delays.
This means that the start of the migration of meters to Half Hourly (HH) settlement has been pushed back to approximately September 2025.
MHHS Recap
For a recap on MHHS read our previous blog, published on 2 September 2024 - UK Market-Wide Half Hourly Settlement | NUS Consulting; however lets briefly re-cap what MHHS is all about.
The MHHS programme is being implemented by Elexon, the UK agency managing the settlement processes between suppliers, generators and traders of electricity.
The current deadline for completion of the MHHS Programme is May 2027 (the updated deadline), with the introduction of many new processes and demands on all industry participants, including Network, Metering and Data providers.
The programme objective is to provide actual Half-Hourly metering data for electricity supplies to all consumers. With an accurate view of energy usage across the UK, the UK Regulator - Ofgem hopes to support the development of a smarter, more cost-effective energy system.
The intended benefit being that all parties will receive better billing, settlement, decarbonisation and energy cost saving opportunities, with the ultimate goal to support a transition to a Net Zero future.
How will changes to the MHHS affect my business?
Most changes will take place behind the scenes and any commercial details will be worked out and communicated to consumers as the programme is delivered across the industry.
Once your MPANs are migrated to MHHS, you will likely notice some initial changes particularly on electricity invoices/bills such as:
- More accurate settlement based on HH data for all your meters;
- A new format for supply numbers;
- Updates to bills, quotes and contracts - possible cost changes due to the difference between NHH and HH metering and settlement;
- MPANs reclassified into new segments - โSmartโ, โAdvancedโ or โUnmeteredโ; New Metering and Data Services Providers to replace existing agents (โMOPโ, โMEMโ, โDAโ, โDCโ);
- As MHHS progresses, it will bring potential benefits for businesses with meters capable of recording HH consumption and sending it to your supplier, in short; significant reduction in estimated billing;
- Better data insights โ As all data will then be Half-Hourly data this can help with managing your consumption and energy efficiency;
As stated in our previous blog; to prepare in advance for MHHS you may wish to upgrade any Non-Half-Hourly (NHH) meters you currently have within your portfolio to Automatic Meter Reading (AMR) meters.
Should you require assistance in updating your metering portfolio please complete - Contact NUS | NUS Consulting or if you are a client speak to your assigned Energy Consultant.
