The new ‘Market-Wide Half-Hour Settlement’ (MHHS) scheme is expected to bring in benefits of up to £4.5 billion for UK consumers in the next 20 years – but why is it so important that businesses reap the rewards too?
With the deadline to implement smart meters for the new MHHS scheme now passed (22nd October), business energy experts at Utility Bidder have given their advice on what businesses should do if they have missed it and the consequences they may face.
Mark Gamble, Head of Supplier Relations at Utility Bidder, has commented on the MHHS scheme and given key advice to UK businesses on what to do next:
“October marked the long-awaited introduction of new electricity market reform led by Ofgem – the MHHS (Market-Wide Half-Hourly Settlement) – to adjust all electricity consumers to a half-hourly settlement. As a transition to Net Zero, this settlement uses half-hourly meter readings for all customers and businesses, enabling benefits such as more accurate billing and improved forecasting.
Those who were unprepared or uninformed and have missed the October deadline risk overpaying for electricity due to estimated billing. Not only that, but delays or errors in the reconciliation of energy consumption and potential compliance issues with energy suppliers and Ofgem rules.”
When should we expect all UK businesses to be utilising the MHHS scheme?
“Despite the scheme now being up and running, there are bound to be teething problems. Back in October 2024, it was specified by Energy UK that the programme would be aiming to steer all domestic and non-domestic electricity market trading to be based on accurate half-hourly data by May 2027.”
What should a business owner do if they have missed the MHHS deadline?
“If a business misses the MHHS deadline, it should immediately contact its energy supplier to arrange a mandatory upgrade to a smart meter or half-hourly meter. Having an up-to-date smart meter is imperative for the scheme to work, and perhaps the biggest obstacle to getting it rolling nationwide, as smart meters are needed to record the amount of energy used on a half-hourly basis”
What are the consequences of missing the Market-Wide Half-Hourly Settlement deadline?
“The supplier will be unable to take on new customers who aren’t compliant, and the business risks being stuck with estimated billing and outdated contracts. The business should also audit its existing meters and understand the impact of the new settlement timetable to avoid potential penalties.”
What are the key benefits for businesses getting on board with the MHHS scheme?
“To make the most of the MHHS benefits, businesses need smart meters capable of those half-hour recordings. They will then be able to gain more accurate, timely insights into their energy usage, and predict energy forecasts with more clarity as a result.
“With the transition to net zero being a massive factor in the introduction of MHHS, engaging with these new schemes will not only result in lower energy bills for businesses, but the likelihood of rewards too for their cooperation.
“Despite the short-term actions needed, all in all, upgrading your business’s smart meter will lead to less hassle in the long run, and cut out the need for engineers taking manual meter readings.”
For more information about business energy and switching, visit https://www.utilitybidder.co.uk.