The energy industry is undergoing significant changes as it moves towards a more sustainable and efficient future. One of the most notable transformations coming soon is the launch of Market-Wide Half-Hourly Settlements (MHHS). This marks one of the most significant shifts in the sector since its privatisation in 1990 and the introduction of full retail competition in 1998. This development, which will reshape how electricity is produced, consumed, and stored, is vital for achieving long-term sustainability goals.
What is MHHS?
Market-Wide Half-Hourly Settlements (MHHS) is a ground-breaking reform designed to modernise the collection and application of energy consumption data. This system ensures more precise measurements of energy usage, which helps reduce waste, facilitates the creation of new energy solutions, and improves how businesses and consumers interact with energy providers.
Key Dates and Transition Process
The transition to MHHS begins in April 2025 and is expected to be fully implemented by December 2026. Some suppliers are even beginning to roll out changes this December, using system integration testing for a group of industry participants. Businesses with Automated Meter Reading (AMR), smart meters, or Half-Hourly (HH) meters will see the first wave of changes, with energy suppliers managing the migration process.
How Will This Affect Businesses?
The implementation of MHHS will have a significant impact on businesses, particularly those with high energy usage. Here are some key ways in which businesses will be affected:
The Benefits of MHHS
Impact on the Industry and Energy Grid
One of the key outcomes of MHHS is the ability to shift energy demand across the grid, reducing pressure during peak times and creating a more balanced energy system.
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As part of the MHHS implementation, various industry terms and processes will also evolve. For instance, ‘Data Aggregation’ will be replaced by ‘Market-Wide Data Service’. The industry is also moving from traditional Half-Hourly and Non-Half-Hourly settlements to smart and advanced meters, further modernising the billing system.
The shift to Market-Wide Half-Hourly Settlements represents a turning point for the energy sector, offering benefits ranging from cost savings to enhanced sustainability. At RES, our Renewables Specialists are here to help businesses navigate this transition and take full advantage of the opportunities it presents.
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