Preparing for theMHHS Transition In UK
Ofgem’s Market-Wide Half-Hourly Settlement (MHHS) programme is arguably the most significant reform of the UK energy industry since privatisation. Its goal is to create a more flexible, smarter energy system by settling every meter in the country on a half-hourly basis.
What exactly is MHHS?
Currently, only large industrial users are settled on a half-hourly basis. Most SME and retail businesses are settled on “profile classes,” which are essentially estimates of when a business is likely to be using energy. MHHS removes the estimation and settles energy based on actual usage every 30 minutes.
The 2027 Mandate
By 2027, every business in the UK—regardless of size—must be transitioned to the MHHS framework. This requires not only a smart meter but also updated background data flows between suppliers, data collectors, and grid operators.
Opportunities for Businesses
While often viewed as a “compliance headache,” MHHS actually provides a massive opportunity for smart businesses to reduce costs. By having highly granular data, you can:
- Identify Peak Wastage: See exactly when your buildings are drawing power unnecessarily (e.g., 3 AM lighting in a retail store).
- Access Time-of-Use Tariffs: Shifting consumption just 1 hour outside of peak grid stress can result in significantly lower unit rates.
- Better Budget Accuracy: No more “bill shock” from reconciled estimates. Your bills will match your real consumption perfectly.
Your Preparation Checklist
Preparation should start now, not in 2026. Here is what we recommend:
- Audit Your Meter Stock: Do you still have old analogue meters or early-generation SMETS1 smart meters that need upgrading?
- Review Your Data Agreements: Ensure you have full rights to your own half-hourly data. Many old contracts restrict this access.
- Strategy Alignment: Talk to your consultant about how your next procurement cycle (12-36 months away) should account for half-hourly pricing structures.
At Inenergy, we are already managing the MHHS transition for some of the UK’s largest multi-site portfolios. If you have concerns about how this will impact your budget, our technical team is ready to help.
