The UK electricity market is undergoing its most significant transformation in decades, with the Market-Wide Half-Hourly Settlement (MHHS) introduction. This change is set to revolutionise how energy is measured, settled, and optimised thus bringing significant benefits to businesses and energy consumers.
What is MHHS?
MHHS is a new system that will replace the existing Non-Half-Hourly (NHH) electricity settlement process. Currently, most businesses and households with non-Half-Hourly (NHH) meters use estimated energy consumption data for billing, which can lead to inefficiencies and inaccuracies. MHHS will ensure that all meters are recording data as at half-hourly intervals, allowing real-time energy usage data to be recorded and settled with greater precision.
The programme will roll out between April 2025 and October 2026, impacting 30 million meters and redesigning the energy market.
Why is MHHS Important?
The transition to MHHS is expected to:
Improve billing accuracy – By using actual half-hourly data, customers will be billed based on their real-time usage rather than estimates.
Increase efficiency – Businesses can analyse and optimise their energy consumption more effectively.
Support Net Zero goals – The new system will encourage flexible energy use and the electrification of new technologies, reducing carbon emissions.
Save costs – Ofgem predicts that MHHS could generate savings of up to £4.5bn by 2045.
Key Changes
How Will MHHS Impact Businesses?
From an industrial and commercial (I&C) standpoint, 2.6 million meters currently account for over 70% of electricity consumption.
Estimated 1.3 million meters already classified as Advanced Data Service (ADS) meters will continue to record HH readings.
The remaining 1.3 million meters will need to transition, with over half already registered as Smart Metering Equipment Technical Specifications (SMETS) meters.
This means businesses need to review their energy contracts, upgrade metering infrastructure and ensure compliance with the new system.
Revised Timeline for MHHS Implementation
Preparing for MHHS with CES
At CES, we specialise in helping businesses navigate energy transitions. Our team can assist you in understanding the impact of MHHS on your operations and developing strategies to optimise your energy use under the new system.
Contact us by email at [email protected] or call us on 0203 157 1020 to discuss how we can support your business throughout this transition.
