Understanding the Market-Wide Half-Hourly Settlement (MHHS) and Its Impact on UK Businesses
The UK’s energy landscape is changing with the implementation of the Market-Wide Half-Hourly Settlement (MHHS), an initiative led by Ofgem to enhance the accuracy of electricity billing and promote a more efficient energy usage.
This initiative will bring significant changes to how businesses manage and are charged for their electricity consumption.
But what does this mean for businesses, and why is it important?
What is the MHHS?
The MHHS reform mandates that all electricity consumption must be recorded at half hourly intervals. Currently only half-hourly (HH) and non-half hourly (NHH) advanced metering is settled using half hourly usage data, which is usually collected on an automated basis.
The new approach has been designed to replace traditional estimated billing methods, ensuring that moving forwards charges reflect actual energy usage.
Who will MHHS affect?
This scheme will affect all small business and domestic electricity meters, these will currently be in the non-half-hourly (NHH) market, usually with a MPAN profile class of 01 – 04. Larger businesses may also be affected if they have multiple meters with low usages.
MHHS Timeline
The MHHS implementation has suffered several delays, initially planned to be released in March 2024, this go-live date has now been postponed to September 2025. This delay further underscores the importance for business’s to stay up to date and informed about the revised timelines so they can adjust their plans accordingly.
To keep up to date with all updates around the MHHS rollout here
Why might I need to change to a new meter?
Not all meters that have been previously installed have the capabilities to take half-hourly readings. So, to ensure you will comply with the new MHHS regulations you may need to have a new meter installed at your business premise.
However, there are a couple of instances where you will not need a new meter installed:
You already have a half-hourly meter:
If your business has a maximum demand of over 100 kilo-volt-amperes (KVA), you are legally obliged to use a half-hourly meter or alternatively you could have opted to have one installed.
If you are unsure of if you have a half-hourly meter already, check your latest electricity bill, your profile class will show as a ‘00’, or to keep things simple get in touch with your energy supplier or broker who will be able to help.
You have a second-generation smart meter
A second-generation smart meter, also known as a SMET2, will already be automatically recording your electricity usage at half-hourly intervals.
If you have a first-generation smart meter, also known as SMET1, you will need to upgrade these as they typically do not take half hourly readings.
If you had your smart meter installed prior to 2018 you will have a SMET1 meter that needs to be upgraded as SMET2 meters were not deployed until 2018.
If you are unsure of the date of the smart meter installation, contact your energy supplier or broker who will be able to inform you of the meter you have.
What Options Are Available to Me?
If your business isn’t currently using a half hourly meter or a smart meter, you will need a new meter installed to comply with the MHHS regulations.
You can reach out to your energy supplier or broker to upgrade your meter, or alternatively all energy suppliers will be reaching out to inform you about the upgrades available to your business. They are likely to offer you a SMET2 smart meter or half-hourly meter depending on your business size and energy consumption.
An alternative option to a half-hourly meter or a smart meter is an automated meter reading, known as an AMR, meter.
These meters offer more flexible reading frequencies than half-hourly meters and provide more granular usage data, meaning you can keep a close eye on your usage patterns. These are particularly useful for businesses with complex energy needs such as a manufacturing facility or a data centre.
These are the options available for your business, its advised you discuss these options thoroughly with your internal teams and your energy supplier or broker who will be able advise you on the meter that would be most beneficial to your business.
Take Advantage of the Rollout and Upgrade Your Meter
If you don’t want to wait, get in touch with the Dyce Energy Team to discuss an upgrade to your meter.
By proactively preparing for this upcoming change, businesses can position themselves to capitalise on the advantages of a modernised energy market.
Get a quote today and take the first step towards controlling your energy usage.
