The UK energy industry is undergoing one of the biggest changes in decades – and if you’re a business or household energy user, it’s going to impact how you’re billed. The shift is called Market-wide Half-Hourly Settlement (MHHS), and it means that instead of estimating when you use electricity, suppliers will soon be using actual data from your meter every 30 minutes to settle what you owe.
But what does that mean for your costs?
Let’s break it down.
What Is MHHS?
Until now, most homes and small businesses were billed using non-half-hourly (NHH) settlement. This means energy suppliers estimated your usage based on profiles and averages — not on real-time data.
But with the rollout of smart meters and advanced metering, we now have the technology to measure exactly when electricity is used. MHHS is Ofgem’s programme to ensure that all electricity usage is settled using half-hourly data – no more guesswork, just accurate readings every 30 minutes.
Why Is the Industry Changing?
The shift to MHHS supports:
- A more flexible, low-carbon energy system
- Better integration of renewables
- Accurate billing based on when you use energy – not just how much
- More incentive for customers to move usage away from peak times
It’s part of building a smarter, greener grid – but it also means your electricity bill could look a bit different in future.
How Will This Affect Your Energy Costs?
Here’s what to expect:
✅ More Accurate Billing
Because MHHS uses real-time data from your meter, it reduces the risk of incorrect bills based on estimates. You’ll be charged for what you use, when you use it — no more, no less.
💡 Opportunities to Save with Flexible Use
Time-of-use tariffs (like Economy 7 or more dynamic versions) will become more common. These tariffs offer cheaper rates during off-peak hours, meaning you could lower your bill by shifting energy use to quieter times — like running appliances overnight or charging an EV during midday solar peaks.
⚠️ Costs Could Increase for Inflexible Usage
If you rely heavily on electricity during peak times (typically 4–7 pm), and can’t shift your usage, you may find your bills rise under time-based pricing models. It’s more important than ever to understand how and when your business or household consumes power.
🏠 Smart Technology Becomes Even Smarter
Smart meters, automated home systems, and energy monitoring tools will help you stay in control. With MHHS, the value of these technologies grows — giving you the information you need to optimise your usage and avoid peak charges.
📈 Tariff Structures Will Evolve
You may notice more innovative tariffs from suppliers – ones that offer rewards for reducing demand at peak times, or penalise high usage during system stress. Choosing the right tariff for your habits will become crucial.
What Should You Do to Prepare?
- Get a Smart Meter – If you haven’t yet upgraded, speak to your supplier or your energy broker about installing one. It’s essential for half-hourly settlement.
- Understand Your Usage Patterns – Work with your broker to analyse your consumption data. When do you use the most energy, and is there flexibility to shift?
- Review Your Tariff Options – Time-of-use tariffs may benefit you – but only if they align with how you operate.
- Stay Informed – MHHS will roll out over the next couple of years, with full implementation expected by 2026. Your broker can help you stay ahead of the changes.