What is Market-wide Half-Hourly Settlement?
Market-wide Half-Hourly Settlement (MHHS) is an important energy industry reform introduced by Ofgem. It means electricity suppliers now use half-hourly data to settle energy more accurately with the grid.
This will make the energy system more efficient and will also support the UK’s move towards Net Zero.
What does settlement mean?
Settlement is an energy industry process that helps keep electricity flowing on the grid.
- Energy companies buy electricity from the markets based on how much electricity they predict their customers will use
- These predictions are never perfect, so afterwards the forecasts are compared to what customers actually used
- Any differences between predicted and actual use are settled by companies paying or receiving money at agreed rates
Settlement is something that customers never see, but it plays an important role in keeping the grid balanced and the whole market working efficiently.
What’s changing with MHHS?
With MHHS, energy can now be settled using more accurate half-hourly consumption data.
As a customer, you won’t notice any difference to your energy supply, but the changes will help improve the way the whole energy industry works.
The past approach
Most customers are settled on estimates based on profiles, not real-time data. This means suppliers often rely on forecasts that don’t fully reflect when and how energy is used.
With MHHS
Meters provide half-hourly readings, so suppliers and the grid know exactly when energy is consumed. This real-time insight helps the whole system run more efficiently.
What are the benefits of half-hourly settlement?
Lower energy costs
According to Ofgem, MHHS could deliver net benefits to UK consumers worth £1.6 billion to £4.5 billion from 2021 to 2045.
Improved accuracy
Energy companies will be able to match what they buy and what customers use much more closely.
A greener energy system
MHHS will make it easier to bring wind and solar power into the system, helping the UK to cut carbon.
More innovative tariffs
Real-time data means companies can offer cheaper off-peak rates (e.g. for EV charging or heat pumps).
Have you upgraded to smart meters yet?
Smart meters let you see how much energy you’re using in real time. If you haven’t switched yet, it’s quick and easy to book an installation – and we fit them for free too.