Getting ready for Market-wide Half Hourly Settlement (MHHS): a new era for the electricity market

Getting ready for Market-wide Half Hourly Settlement (MHHS): a new era for the electricity market

Blog: Marc Brook, Bureau Services Manager at TEC

Market-wide Half Hourly Settlement (MHHS) represents one of the biggest reforms to the UK electricity market in more than 25 years. Electricity suppliers will bill customers using half-hourly data for the energy used rather than relying on monthly reads that are more often estimated than actual or rely on customer readings.  MHHS aims to improve the accuracy of electricity consumption measurement and billing, supporting the transition to a modern energy system. To help members understand what this means in practice, we spoke with Marc Brook, TEC’s Bureau Services Manager, about the scale of the change, how members should prepare, and how TEC is supporting the transition.

How significant is the change to Market-Wide Half-Hourly Settlement (MHHS)?

MHHS is one of the biggest changes to the way the industry manages data since competition was introduced in the late 1990s. The traditional meter settlement process looked at data over a 14-month period, but under MHHS suppliers will need to settle that data in just a few days. This shift will dramatically change how suppliers operate and how existing industry agents, such as the traditional metering agents, the data collectors, and data aggregators, manage their processes.

For electricity consumers, the reform will have huge implications for pricing, budgeting, and forecasting. Initially, the biggest impact will be felt by institutions with a “traditional” meter portfolio – meters that are neither “smart” nor automatically read – and those with non-functioning advanced meter portfolios, as these cannot meet the half-hourly requirements.

How is TEC helping its members prepare for these changes?

As MHHS represents such a major industry change, TEC’s focus will be on making the transition as seamless as possible for our members. We’re already working closely with EDF, our energy supplier, as well as other independent metering agents. At this stage, the most important thing is raising awareness. Members need to understand the type of meters they have and how ready their metering portfolio is for MHHS.  TEC will be reaching out to members whose meters may need upgrading – particularly those with traditional or non-functioning advanced meters.  Once MHHS goes live later this year, elements of metering costs could initially increase if suppliers are not receiving half hourly data. This makes it key to get on top of traditional and broken meters as quickly as possible.

How can TEC members use MHHS to reduce energy costs and usage?

With access to more detailed consumption data, you can analyse your energy use in far greater detail as you may do with your existing Half Hourly portfolios. Understanding how energy usage aligns with factors such as footfall and operating hours can identify opportunities to improve efficiency and reduce costs. The fuller data sets also enable better forecasting and budgeting. By analysing baseload consumption and behavioural use, TEC can work with suppliers to explore more innovative tariff options with our suppliers that reward energy use during periods of lower demand. Another advantage to MHHS is that you will be able to spot anomalies sooner – meaning you don’t need to wait a month to find out your bill is inaccurate.

Whilst the membership has a varied portfolio, there is some commonality, so sharing knowledge about maximising the benefits of MHHS will be important.

TEC is holding a Market-wide Half Hourly Settlement (MHHS) webinar with Stark on Friday 13^th March 13. Contact your MSA to register.