How Market-Wide Half-Hourly Settlement (MHHS) Will Transform the UK Energy Market

Thomas McGlynn • 15 January 2025

What Is Market-Wide Half-Hourly Settlement and Why Does It Matter?

The UK’s electricity market is undergoing a revolutionary transformation with the introduction of the Market-Wide Half-Hourly Settlement (MHHS) Programme. Designed to bring about cheaper energy bills, smarter energy usage, and a greener future, MHHS is set to reshape the way electricity is traded and consumed. But what does it mean for you as an energy user? Let’s explore.

What is the MHHS Programme?


At its core, the MHHS Programme enables energy suppliers to match the electricity they buy with the actual usage of their customers. By October 2026, all electricity market trading for domestic and non-domestic customers will be based on accurate half-hourly data.


The programme is a cornerstone of the UK’s journey towards Net Zero, making the energy market more flexible and sustainable. It also sets the stage for a wide range of innovations, such as time-of-use tariffs and battery storage solutions, all aimed at improving energy efficiency and reducing costs for customers.

Why Does MHHS Matter?


The MHHS Programme isn’t just a technical upgrade for energy suppliers; it brings real-world benefits to households and businesses alike:


  • Cheaper Bills: By enabling more accurate billing and innovative tariffs, MHHS ensures you only pay for the energy you use when you use it.


  • Smarter Energy Usage: With better visibility of your energy consumption, you’ll have the tools to optimise your usage and reduce waste.


  • A Greener Future: By making better use of existing infrastructure and reducing the need for new power generation, MHHS supports the UK’s ambitious Net Zero targets.



  • Access to Innovative Products: From vehicle-to-grid solutions to smarter tariffs, MHHS paves the way for products that reward flexibility and sustainability.

What Changes Will You Notice?


For most energy users, the transition to MHHS will be seamless. However, there are a few key changes you should be aware of:


  1. Smart Meters Are Essential
    MHHS relies on         smart meters to record half-hourly energy usage. If you don’t have one installed, contact your energy supplier to arrange this free of charge.

  2. Introduction of Time-of-Use Tariffs
    These innovative tariffs allow you to save money by shifting energy usage to off-peak times when electricity is cheaper.

  3. Greater Transparency
    You’ll gain access to detailed insights about your energy consumption, helping you make informed decisions about how and when to use electricity.

How Does MHHS Help the UK Achieve Net Zero?


The UK’s energy grid is under increasing pressure to reduce carbon emissions while meeting growing demand. By encouraging smarter energy use and reducing waste, MHHS:


  • Lowers the cost of maintaining and expanding the grid.


  • Reduces reliance on fossil fuels by integrating renewable energy sources.



  • Promotes sustainable innovations like battery storage and electric vehicle charging solutions.

What’s Happening Behind the Scenes?


Delivering MHHS is a collaborative effort involving several key organisations:


  • Ofgem: The programme sponsor overseeing its success.


  • Elexon: Responsible for implementing the programme and managing the transition.


  • Suppliers and Industry Participants: Adapting their systems to handle half-hourly data and developing new products and services.


  • Retail Energy Code Company (RECCo): Ensuring compliance with industry code changes and facilitating updates to switching processes.



As of now, the focus is on the testing phase, with suppliers preparing their systems for the migration phase, which starts in September 2025. By May 2027, MHHS will be fully operational.

FAQs: What You Need to Know About MHHS

  • What is MHHS, and why is it important?

    MHHS is a new settlement process that uses half-hourly energy data to enable more accurate billing and better energy management. It supports innovation, reduces costs, and helps the UK meet its Net Zero goals.



  • Do I need a smart meter for MHHS?

    Yes, smart meters are essential for recording half-hourly energy usage. Contact your energy supplier to install one if you don’t already have it.

  • How will MHHS affect my energy bills?

    With accurate billing based on when you use electricity, you may benefit from time-of-use tariffs and lower bills by shifting usage to off-peak times.

  • Will I experience service interruptions during the transition?

    No, the transition to MHHS is designed to be smooth, with no interruptions to your energy supply.

  • What are time-of-use tariffs?

    These are pricing plans where electricity costs less during off-peak hours, encouraging you to shift usage to times when demand is lower.

  • How does MHHS help the environment?

    By promoting smarter energy usage and reducing the need for new power generation and infrastructure, MHHS supports the UK's Net Zero ambitions.

  • What happens if I don’t have a smart meter?

    Without a smart meter, you won’t be able to take full advantage of the benefits of MHHS, such as accurate billing and time-of-use tariffs. Contact your supplier to arrange an installation.

  • Will this change how I pay my energy bills?

    The way you pay (direct debit, prepaid, etc.) won’t change, but the amount may vary depending on when and how much energy you use.

How Smart Energy Company Can Help


Navigating the changing energy market can be daunting, but we’re here to help. At Smart Energy Company, we specialise in simplifying energy management for businesses, offering:



  • Expert Advice: Learn about time-of-use tariffs and innovative energy-saving solutions.


  • Seamless Transitions: We handle everything, from finding the best deals to managing the switch.

Final Thoughts


The Market-Wide Half-Hourly Settlement Programme is a vital step in creating a smarter, cleaner, and more efficient electricity market. With benefits ranging from lower bills to innovative energy products, MHHS offers exciting opportunities for all energy users.


To ensure you’re ready to take advantage of these changes, make sure you have a smart meter, stay informed about new tariffs, and seek expert guidance when needed.


Want to find out how MHHS can help your business? Contact us today for a free energy review and see how much you could save.

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