Market Wide Half-Hourly Settlement (MHHS)

MHHS is a significant regulatory change, representing the biggest project undertaken in the energy sector since privatisation in 1998 which aims to create a more accurate and efficient energy system. However, many are not aware of the project, but LGE is here to help, our blog post by our Director of Innovation & Development, Isa Cole, explains what MHHS is, how it will impact and benefit your business and the timeline for its implementation.

What is MHHS?

Brought in by Ofgem and being administered by Elexon, MHHS will see all electricity meters become ‘settled’ on a half-hourly basis meaning measurements of your consumption will be taken every half-hour. The hope of doing this is that UK consumers will have more flexible, efficient and cost-effective electricity usage through having access to increased data granularity. Ofgem estimates it could save UK consumers between £1.6 and £4.6 billion by 2045. Alongside aiding consumers, it will also help the UK government move toward its net zero targets as it can understand in greater detail how and when consumers use electricity.

Under the changes, metering will be defined by market segment (advanced, smart and unmetered) compared to now when it is segmented by either half-hourly or non-half hourly. Many businesses have already transitioned to half-hourly settlement, but for those who have not: MHHS will be mandatory, it is not OPTIONAL, with all non-half-hourly meters transitioning to half-hourly. However, for consumers who still have NHH meters, upgrades to your meters will be optional and not mandatory, with dumb meters also still able to operate under MHHS.

Ultimately, the process will be a step-change project rather than all suppliers migrating customers in one go and at the same time. The process will be dependent on your supplier’s roadmap for MHHS.

What else do I need to know?

Even if you already have half-hourly meters, MHHS will still impact you as meter agent roles are changing. Meter Operators (MOPs) are being split into two categories: metering services smart & metering services advanced, with Data Aggregators and Data Collectors (DAs/DCs) being replaced by smart, advanced and unmetered data services. These new metering roles will be offered as a separate contract rather than being rolled up into a supply contract, providing greater choice to consumers.

Another important change is that the top-line of a meter-point administration number (MPAN) is changing, meaning that your MPAN numbers will be updated. The graphic below shows the difference in your MPAN pre and post MHHS:

How will MHHS impact and benefit your business?

The move toward a more granular half-hourly settlement of electricity consumption will have several impacts and benefits to your business. These include:

Greater Insights & Flexibility- This will be the central feature of MHHS, with more data being accessible to help you make better decisions on products, your practices and how best to meet your energy needs by improved energy management and adjusting consumption patterns.
Improved Accuracy & Forecasting- Access to real-time actual energy usage will allow for more precise meter reads and consequently more accurate billing, which will allow businesses better forecasting of energy costs and streamlined budgeting.
Corporate Social Responsibility (CSR) Goals- With many businesses now engaging with CSR, the data granularity offered through MHHS can be utilised to meet these goals and strengthen environmental credentials.
Changes to Bills- Bills will look much different due to the level of data being captured. Bills will contain the HH granularity recorded for each day within a month (meaning 48 reads per day will be shown). It is for this reason that electronic billing is strongly being advised due to the level of data being involved.
Greater Grid Efficiency- Better data for grid operators will allow them to manage supply & demand more effectively and facilitate the integration of renewable energy.

How will MHHS impact and benefit your business?

The move toward a more granular half-hourly settlement of electricity consumption will have several impacts and benefits to your business. These include:

Greater Insights & Flexibility- This will be the central feature of MHHS, with more data being accessible to help you make better decisions on products, your practices and how best to meet your energy needs by improved energy management and adjusting consumption patterns.
Improved Accuracy & Forecasting- Access to real-time actual energy usage will allow for more precise meter reads and consequently more accurate billing, which will allow businesses better forecasting of energy costs and streamlined budgeting.
Corporate Social Responsibility (CSR) Goals- With many businesses now engaging with CSR, the data granularity offered through MHHS can be utilised to meet these goals and strengthen environmental credentials.
Changes to Bills- Bills will look much different due to the level of data being captured. Bills will contain the HH granularity recorded for each day within a month (meaning 48 reads per day will be shown). It is for this reason that electronic billing is strongly being advised due to the level of data being involved.
Greater Grid Efficiency- Better data for grid operators will allow them to manage supply & demand more effectively and facilitate the integration of renewable energy.

LGE’s Recommendations:

To get ahead of the game, LGE recommends three simple actions to help you get ready for MHHS:

Becoming familiar with your consumption patterns to identify areas for optimisation and flexibility.
Understanding your current metering infrastructure and its capability for providing HH data
Investigate the potential for upgrading any NHH meters.

All these things can help assist with maximising the benefits of MHHS.

Indicative Timeline:

Due to the step-change nature of the project, the timeline for MHHS is subject to change and each supplier will be different however the key indicative dates are as follows: