UK Businesses: Is your Business ready for Market wide Half Hourly Settlement (MHHS)?

The way your business is charged for electricity is about to change. The Market-wide Half-Hourly Settlement (MHHS) programme is a major reform of the UK energy market that will affect all businesses, big and small, with an electricity meter.

Instead of using estimated or average data, energy suppliers will use actual, half-hourly data from your meter to calculate your energy consumption. While this may sound technical, it presents a significant opportunity for small businesses to cut energy costs and improve efficiency.

What is a Market-wide Half-Hourly Settlement (MHHS)?

Historically, many small businesses were billed based on non-half-hourly (NHH) settlement, which uses a profile to estimate when you use energy. MHHS removes this estimation, replacing it with precise consumption data collected every 30 minutes.

This transition supports the UK's move towards a smarter, greener, and more flexible energy system. With accurate, real-time data, suppliers can offer innovative tariffs that reflect actual energy costs throughout the day, and businesses can use that information to their advantage.

How will MHHS affect my SME?

For most SMEs, MHHS will bring positive changes and new opportunities.

• More accurate billing: Say goodbye to billing based on estimates. You will now be charged for exactly what you use, when you use it, leading to more accurate invoices and better budget management.

• Lower costs through flexible use: MHHS paves the way for new "time-of-use" tariffs. By understanding your business's energy patterns, you could shift energy-intensive tasks to off-peak hours when electricity is cheaper, leading to real savings.

• Greater energy efficiency: With access to your half-hourly data, you can identify periods of high energy consumption and pinpoint inefficiencies. This insight helps you make smarter choices to reduce waste and your carbon footprint.

• A greener business model: By responding to price signals and reducing energy use during peak demand, you'll be contributing to a more balanced and sustainable energy grid, which relies more on renewable power.

Is my business MHHS-ready? Your essential checklist

To make the most of the transition and avoid any issues, follow these simple steps:

• Check your meter: You will need a compatible smart meter (known as a SMET2) or an advanced meter (AMR) to participate in half-hourly settlement.

• If you have an older or first-generation smart meter (SMET1), you will need an upgrade.

• If you are unsure, check your electricity bill for a "Profile Class 00" under your Meter Point Administration Number (MPAN).

• Speak to your supplier: Your energy supplier can provide information on your current meter and arrange for an upgrade if necessary. They can also explain the process for transitioning to MHHS.

• Understand your energy usage: Once you have a compatible meter, use the half-hourly data to understand your business's energy consumption patterns. This will help you find opportunities to save money.

• Explore new tariffs: Ask your supplier or Free Payment Consulting & Business Services about any new time of use or flexible tariffs. With your new data, you can evaluate which tariff best fits your business operations.

  The migration to MHHS is scheduled to happen between late October 2025 and May 2027. By taking action now, you can transform a mandatory change into a valuable opportunity for your business.

  Future proof your energy costs. We at Free Payment Consulting & Business Services can lock in today's energy prices up to two years in advance of your current contract end date

By acting in advance of your contract end date, your business can secure a new fixed energy rate to protect against future price rises and avoid expensive out of contract rates. We monitor the market for the right opportunity to negotiate your renewal, potentially up to two years ahead for eligible businesses. We usually will only offer a new contract if we can secure a rate that is cheaper than your current supplier's latest offer, ensuring you always get a competitive deal.

Contact us today to get your new contract sorted