The UK’s energy landscape is on the cusp of a significant transformation with the implementation of Market-Wide Half-Hourly Settlement (MHHS). This reform aims to settle electricity usage based on actual half-hourly consumption data, moving away from traditional estimated profiles. The initiative is expected to deliver net benefits to consumers in the UK, estimated between £1.6 billion and £4.5 billion over the period 2021 to 2045.

Enhancing Energy Monitoring for Consumers

For many consumers, especially those without prior visibility into their energy consumption patterns, MHHS offers a transformative opportunity. With the integration of smart meters capable of recording energy usage in 30-minute intervals, consumers can now access detailed insights into their consumption habits. However, to effectively interpret this data, the use of energy monitoring tools becomes essential. These tools enable consumers to:

• Visualise Consumption Patterns: Graphically represent energy usage over time, making it easier to identify trends and anomalies.
• Analyse Trends: Understand long-term usage patterns, seasonal variations, and the impact of behavioural changes on energy consumption.
• Set Consumption Targets: Establish energy-saving goals and monitor progress in real-time.

By leveraging these tools, consumers can make informed decisions to optimise their energy usage, leading to potential cost savings and a reduced environmental footprint.

Implementation Timeline

The transition to MHHS is a comprehensive process. The migration phase is set to commence in September 2025, spanning an 18-month window during which suppliers will transition their customers to the new settlement arrangements. The full implementation of MHHS is scheduled for May 2027.

Potential for Energy Reduction

The shift to MHHS is anticipated to encourage more flexible energy use among consumers. By providing accurate price signals that reflect the true cost of electricity during different times of the day, consumers are incentivised to adjust their consumption patterns. This demand-side flexibility can lead to:

• Reduced Peak Demand: Lowering the strain on the electricity grid during high-demand periods.
• Decreased Need for Additional Generation Capacity: Minimising the reliance on fossil fuel-based power plants, thereby reducing greenhouse gas emissions.
• System-Wide Efficiency: Optimising the use of existing infrastructure, leading to overall cost reductions in the energy system.

According to Ofgem’s analysis, MHHS is a vital enabler of flexibility, supporting the integration of renewable energy sources and contributing to the decarbonisation of the energy sector.

The implementation of Market-Wide Half-Hourly Settlement marks a pivotal step towards a more transparent, efficient, and consumer-centric energy market in the UK. By leveraging detailed consumption data and utilising energy monitoring tools, consumers who previously lacked visibility into their energy usage can now take proactive steps to manage and reduce their consumption, leading to financial savings and contributing to broader environmental goals.