Understanding Market-wide Half-Hourly Settlement (MHHS)This program is designed to revolutionise how electricity usage is measured and settled across the UK.

The energy industry is undergoing significant transformation, and one of the pivotal changes on the horizon is the Market-wide Half-Hourly Settlement (MHHS) initiative. This program is designed to revolutionise how electricity usage is measured and settled across the UK, bringing numerous benefits to consumers and the energy market.

What is MHHS?

MHHS stands for Market-wide Half-Hourly Settlement. It is an initiative aimed at transitioning the electricity settlement process from traditional methods, which rely on estimated and infrequent meter readings, to a system where electricity usage is recorded and settled in half-hourly intervals.

This change is made possible by the widespread deployment of smart meters, which can provide precise and timely data on energy consumption.

This involves switching 30m NHH meters to half hourly settlement from April 2025 and October 2026.

There are currently 2.6 million meters in the market that account for more than 70% of the electricity consumption which will all need to be moved across to the new operating model.  Currently 1.3 million are classified as advanced data service (ADS) and recording half hourly reads. The remaining 1.3 million are split with just over half already registered as SMETS meters.  This leaves 600,000 meters that need to be moved across from being traditional meters to either Advanced or Smart.

Why is MHHS Important?

> Accuracy and Efficiency: By utilising real-time data from smart meters, MHHS ensures that electricity usage is measured more accurately. This reduces discrepancies between estimated and actual consumption, leading to fairer billing for consumers and more efficient market operations.

> Consumer Benefits: With more accurate data, energy suppliers can offer innovative tariffs and services tailored to actual usage patterns. This can help consumers save on their energy bills and make more informed decisions about their energy consumption.

> Environmental Impact: MHHS supports the UK’s transition to a greener energy system. Accurate settlement data enables better integration of renewable energy sources and encourages the use of low-carbon technologies, contributing to the UK’s net-zero goals.

> Market Innovation: The shift to half-hourly settlement creates opportunities for new market entrants and service providers to develop innovative solutions that enhance the overall efficiency and resilience of the energy system.

Implementation and Governance

The MHHS programme is overseen by Ofgem, the UK’s energy regulator, with Elexon responsible for the overall programme management. The programme involves extensive collaboration with industry stakeholders to ensure a smooth transition and successful implementation.

Key Milestones

The transition to MHHS is planned to be completed by December 2026. This timeline includes several critical phases, such as system development, testing, and migration, to ensure that all market participants are ready for the new settlement process.

Preparing for MHHS

Energy suppliers, distributors, and other market participants need to prepare for the changes brought about by MHHS. This includes upgrading IT systems, enhancing data management capabilities, and training staff to handle the new processes. Collaboration with technology partners and data service providers will be essential to navigate the complexities of this transition.

Conclusion

The Market-wide Half-Hourly Settlement is a landmark initiative that will modernise the UK’s electricity market.

By harnessing the power of smart meter data, MHHS promises to deliver significant benefits in terms of accuracy, efficiency, and innovation. As the energy sector continues to evolve, MHHS will play a crucial role in shaping a smarter, greener, and more consumer-friendly energy system.

For more detailed information and updates on the MHHS programme, visit the MHHS Programme website.

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