The UK energy landscape is undergoing a significant transformation. The introduction of Market-wide Half-Hourly Settlement (MHHS) is set to revolutionise how electricity usage is measured, billed, and managed. This change is not just a regulatory update; it’s a pivotal step towards a more flexible, efficient, and sustainable energy system.
What is MHHS?
MHHS is a major reform mandated by Ofgem, the UK’s energy regulator, representing the most significant change to the electricity market since the late 1990s, with Elexon leading its implementation. It requires all electricity suppliers to settle their accounts based on actual half-hourly consumption data obtained from smart meters. This means that, instead of relying on estimated usage profiles or monthly readings, businesses will be billed according to their precise energy usage every 30 minutes.
This shift is built upon the widespread deployment of smart meters, which automatically record and transmit energy usage data. By the end of 2025, nearly every property in Britain is expected to have a smart meter installed, enabling real-time data collection and more accurate billing.
Why is This Change Crucial?
The move to half-hourly settlement brings several key benefits:
Firstly, it enhances billing accuracy. By using actual usage data, businesses will receive bills that more accurately reflect their energy consumption, eliminating the discrepancies caused by estimated readings.
Secondly, it opens the door to cost-saving opportunities. With precise data, suppliers can offer time-of-use tariffs and other pricing models that allow businesses to optimise their energy usage and reduce costs.
Moreover, the availability of detailed usage data paves the way for integrating technologies like electric vehicles and battery storage systems. This not only helps businesses manage their energy more efficiently but also supports the UK’s transition to a net-zero carbon economy.
Key Dates and Timeline
The MHHS implementation is progressing as follows:
MHHS is taking place in stages between September 2025 and July 2027:
- September 2025 – Industry systems go live
- October 2025 to May 2027 – Industry migration window
- May 2026 to May 2027 – Industry designated migration window for Drax Energy Solutions; we’ll commence our migration in August 2026
- July 2027 – Ofgem’s target for MHHS completion
These milestones are part of a broader effort to modernise the UK’s electricity market and align it with contemporary energy needs and technologies.
What Does This Mean for Your Business?
Preparing for MHHS is essential but can feel complex. Rather than navigating the changes alone, the best way to ensure a smooth transition is to seek expert support.
At Black Sheep Utilities, we will assess your metering setup, explain how MHHS will impact your business, and create tailored strategies to optimise your energy use and costs — taking the pressure off you.
Need Assistance? Book an Appointment Today
If you have any questions or want personalised guidance, simply book a callback with one of our experts. We’re here to support you through every step of the MHHS transition.
And don’t forget to stay tuned for the next blog in our MHHS series, where we’ll dive deeper into how your business can unlock the full benefits of this major energy market reform.
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What is Market-wide Half Hourly Settlement (MHHS)?
MHHS is a major reform to the UK electricity market that requires all electricity consumption to be measured and settled based on accurate half-hourly data. This replaces estimated or monthly readings, enabling more precise billing and supporting a smarter, more flexible energy system.
Why is MHHS important for businesses?
MHHS allows suppliers to better understand actual energy usage patterns, helping to offer new tariffs and flexibility schemes. This can reduce costs, improve energy efficiency, and support the transition to Net Zero by encouraging smarter energy consumption.
When will MHHS be fully implemented?
The migration to MHHS begins in September 2025 and runs for 18 months. By May 2027, all Meter Point Administration Numbers (MPANs) will be settled on a half-hourly basis, with a full settlement timeline of four months expected by July 2027.
Who is managing the implementation of MHHS?
Elexon, an expert organisation responsible for balancing and settlement in the UK wholesale electricity market, is leading the implementation of MHHS under the oversight of Ofgem, the UK’s energy regulator.
How can Black Sheep Utilities help my business prepare for MHHS?
Black Sheep Utilities offers expert advice and support to assess your current metering setup, explain the impact of MHHS on your energy use, and develop tailored strategies to optimise your energy costs. You can book a callback with our team to get personalised guidance through this transition.
