Market Wide Half Hourly Settlement (MHHS) Guide
The Market Wide Half Hourly Settlement programme will change how businesses are billed for their commercial electricity usage, through updating electricity meters and having more accurate bill readings.
Why Is Market-Wide Half-Hourly Settlement (MHHS) Important?
The Market-Wide Half Hourly Settlement Programme (MHHS) addresses the challenges many UK businesses face with estimated electricity consumption. These issues often lead to being undercharged or overcharged on electricity bills, which can strain a business's cash flow.
What Is The Market-Wide Half Hourly Settlement Programme?
Market-Wide Half Hourly Settlement will ensure UK businesses are billed more accurately for their commercial electricity by submitting automatic meter readings every 30 minutes with half hourly meters.
When Will MHHS Begin Rolling Out?
The MHHS programme is set to begin rolling out to businesses in September 2025, with full implementation expected by May 2027. A smooth rollout needs several steps to take place, and the 18-month window allows time for testing before the full launch.
Will I Need A New Electricity Meter?
UK businesses with basic smart or traditional meters will need to upgrade to a half-hourly meter that can send readings more frequently. This change is mandated by the industry regulator Ofgem, and failure to comply before the deadline may result in penalties.
How Much Will A Half Hourly Meter Cost?
Many suppliers should upgrade your electricity meter to a half hourly meter free of charge. If not, consider switching business electricity suppliers to one who will install your electricity meter for free.
How Does MHHS Impact Multi-Rate Meters?
Half-hourly meters are compatible with multi-rate tariffs so businesses with Economy 7 and Economy 10 tariffs do not need to worry about losing access to non-peak hour savings.
What Are Half Hourly Meters?
Half-hourly meters are business electricity meters that take electricity readings every 30 minutes and automatically send them to your supplier. Also known as HH or 00 meters, they have been popular among businesses with high electricity consumption (maximum demand of 100 kWh or higher) as a way to manage electricity costs effectively.
Read more about half hourly meters
Why MHHS Is Being Implemented?
Ofgem began reviewing the electricity market nearly a decade ago and concluded that market-wide adoption of half-hourly meters would address many issues stemming from estimated billing. It also supports the UK’s efforts towards reaching Net Zero.
Since many larger businesses have already been required to use half-hourly meters for several years, this move represents a logical next step to reducing lengthy billing settlement periods. Ofgem has designated Elexon to operate the IT data platform that will support MHHS.
What Do Businesses Need To Do To Comply With MHHS?
UK businesses of all sizes must have electricity meters capable of taking automatic readings every 30 minutes. This may require upgrading their current meter or installing a new one.
Compliance with this mandate is necessary, and although the specific penalties for non-compliance are not yet known, businesses must be prepared for them. The official live date is set for May 2027.
Business MHHS Compliance Checklist
Check current meter - Determine the type of meter you currently have to see if action is required. You may need to examine your electricity bill or your physical meter, which can sometimes be labeled as ‘HH’ or ‘00’ meters.
Start upgrade
If you do not have a half-hourly meter, you will need to initiate the upgrade process. It may be more practical to do this when switching suppliers. You’ll get a new MPAN with a new installation.
Review new contract
Since you'll be receiving a new type of meter, your supplier will need to provide you with an updated contract.
Electricity review
Once your new half-hourly meter is installed, use it to optimise your business's electricity consumption.
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