As the UK energy landscape evolves rapidly, businesses must stay ahead of upcoming energy deadlines and reforms – or risk being caught off guard. From market settlement changes to the retirement of legacy systems and the introduction of new carbon-border taxes, the next two years promise to reshape how businesses buy, meter and report energy. Here are five key developments on the horizon and what to watch.
Market-Wide Half-Hourly Settlement (MHHS)
The Market-Wide Half-Hourly Settlement (MHHS) programme will fundamentally change how electricity usage is recorded and billed. It will require most electricity consumption in non-domestic sites to be settled on a half-hourly basis, using smart metering and more detailed data flows. Although the original timeline has been adjusted, with the latest plan extending migration into 2026 or beyond, the milestone achieved in September 2025, when central systems were declared ready to begin migrating MPANs, marks a significant step forward.
Businesses should review their meter portfolios now, ensuring readiness for half-hourly settlement and exploring opportunities for time-of-use tariffs or demand flexibility services. If your supplier or metering agent hasn’t yet discussed your migration plan, it’s time to start that conversation to avoid disruption or missed savings opportunities.
Radio Teleswitch Service (RTS) Switch-Off
The Radio Teleswitch Service (RTS) – used for remotely switching older multi-rate meters and heating systems – is being phased out. A regional switch-off began on 30 June 2025, with the signal being withdrawn area by area through 2025 and into 2026. Many sites, especially those with legacy storage-heating systems or Economy 7/10 arrangements, still depend on RTS to control off-peak electricity periods.
If your business operates any RTS-enabled meters or equipment, now is the time to arrange replacements with smart or modern multi-rate alternatives. Failing to act ahead of your area’s switch-off could result in disrupted heating schedules, billing issues, or compliance risks.
UK Emissions Trading Scheme (UK ETS) and Carbon Border Adjustment Mechanism (CBAM)
Carbon policy is tightening, with two major developments: the ongoing evolution of the UK Emissions Trading Scheme (UK ETS) and the forthcoming UK Carbon Border Adjustment Mechanism (CBAM). The ETS is undergoing consultation throughout 2025 to prepare for Phase II, which includes new caps, scope expansions, and potential integration of greenhouse gas removals.
Meanwhile, the UK CBAM – designed to impose a levy on carbon-intensive imports such as cement, aluminium and steel – will take effect on 1 January 2027. Draft legislation was released for consultation in April 2025. Businesses importing carbon-heavy goods should begin mapping their exposure, engaging suppliers, and establishing carbon-reporting systems now to prepare for compliance.
Energy Code Reform
The Energy Act 2023 initiated sweeping changes to industry governance through Energy Code Reform, which will reshape how market codes (such as the BSC and REC) are managed and updated. Ofgem has begun licensing new “code managers” to take over these responsibilities, with transitions continuing through 2026.
These reforms will change how modifications are proposed and approved, influencing everything from settlement processes to metering standards. For energy and compliance teams, it’s essential to stay informed on code developments and ensure contractual arrangements remain aligned with the new regulatory framework.
From smarter metering and data-driven settlements to carbon-pricing reforms and code modernisation, these changes will affect every business’s energy costs, compliance, and sustainability reporting. Now is the time to review contracts, assess data readiness, and plan upgrades.
If you’d like a tailored briefing or checklist outlining how these deadlines affect your business’s sites and supply contracts, RES can help ensure you’re fully prepared for what’s coming next. Get in touch with our expert team today for support.
