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The electricity industry is poised for a significant transformation with the introduction of Market-wide Half-Hourly Settlement (MHHS). This ground breaking reform will revolutionise how electricity is used and accounted for, ushering in a faster, more accurate settlement process for all market participants.
At the heart of this initiative is a collaborative effort between industry stakeholders. Ofgem has entrusted the industry itself to deliver the MHHS Program, appointing Elexon as the Senior Responsible Owner (SRO). This unique approach demonstrates the industry's commitment to driving innovation and efficiency.
A key outcome of MHHS will be the implementation of site-specific reconciliation using half-hourly meter readings. This will result in a more granular and precise settlement process, benefiting all market participants. Elexon, a leading expert in balancing and settlement processes, is proud to spearhead this transformative initiative.
MHHS will play a pivotal role in enabling a smarter, more flexible energy system. By supporting flexible solutions, this reform will contribute significantly to the nation's transition to Net Zero. As the electricity industry embraces this new era, MHHS promises to deliver a more efficient, reliable, and sustainable energy future.
In basic terms it is moving all business non-half hourly supplies (majority of care homes) to be migrated onto Half-hourly settlement. This gives a better position for energy efficiency and management (access to usage data) however it also paves the way for areas such as time of use tariffs – under net zero. Things that have been in place for years such as profile classes, terms such as meter operator/collector will be changing.
In monetary terms is potential increases to standing charges as we have seen with HH supplies – on the basis that this change could make being energy efficient easier to reduce costs.
If you are due to renew your energy contract in the next 12 months we would encourage that you look at 24 months or 36 months (if rates are ok – otherwise 24 months) to delay changes to the standing charge.
Due to this change Smart Metering installation is highly recommended, however it is important that the correct route is taken to ensure alignment to this change rather than having it installed only to need it replacing again in a year or so, we can advise best practice and help care homes navigate this.
To discuss this, or any other business efficiency areas, contact our team today on 01273 424904.
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