Ofgem and Energy Secretary Ed Miliband have warned energy companies that no further delays will be tolerated to the roll-out of a new system designed to deliver cheaper and more accurate energy bills for consumers.
The Market-wide Half Hourly Settlement (MHHS) programme, is set to modernise the way electricity usage is measured, allowing more customers to benefit from time-of-use tariffs that offer lower prices at certain times of day.
In a joint letter to energy company CEOs, Ofgem chief executive Jonathan Brearley and Ed Miliband made it clear that after a 6.5-month delay was granted in 2024, no further slippage would be accepted.
Ofgem had approved the delay to allow the programme’s implementation manager, Elexon, more time to test the system and ensure it would deliver promised benefits.
“The MHHS programme could bring down bills and reduce emissions, but it needs the industry to do its bit.
“Last year we made the tough decision of approving a delay to the scheme to give the industry more time to get this right.
“But we’re drawing the line on any further delays. We’ve written to the energy companies involved to set out some new ground rules, along with a consultation seeking views from the industry on how best to implement the programme on time.
“We’re acting now to prevent any more hold ups and get consumers the savings they need.”
Jonathan Brearley, CEO Ofgem
The introduction of MHHS from 2025 to 2027 means that where customers agree to share their data, suppliers will be able to offer new, innovative tariffs. These could give households more control over their energy usage and help lower bills.
Big savings
Data from the Department for Energy Security and Net Zero shows the potential savings are significant.
Electric vehicle owners could save an estimated £332 a year by charging their vehicles at night using time-of-use tariffs.
Households could save around £38 annually by switching from a variable tariff to a dynamic one and running appliances like dishwashers during off-peak hours.
MHHS is seen as a critical part of the UK’s net zero strategy.
By charging for electricity based on when it is used, consumers can take advantage of times when renewable energy generation is high—for example, during periods of strong wind—helping to balance demand and ease pressure on the grid.
Charging by time of day, building more wind and solar farms and speeding up grid connections are all essential to Britain’s clean energy future.
