Half Hourly meters: challenges and opportunities

So, these are the areas of focus within this article.

What are the key reconciliation challenges?

The main issues concern data management, communication, and the accuracy (or not) of the data.

Data management

Managing the data is an issue because of the sheer volume of information. This will increase as the UK transitions from Non-Half Hourly (NHH) reporting – involving the daily or monthly measurement of usage – to HH records under the new MHHS system.

More data means an increased data processing demand, requiring an upgrade in IT systems and infrastructure – and significant extra investment. It's also worth noting there are privacy concerns in some quarters around the collection and communication of consumption figures.

Communication

The communication issues relate to the variations in signal strength and connectivity across the country. The smart meter rollout nationally has already found that different areas have varying signal strengths – sometimes so weak that smart meter installations aren’t viable. And yet, the success of the MHHS will depend on a UK-wide smart implementation.

Accuracy

Calculating the sum of HH volumes may involve using estimates (e.g. for periods when there’s been a loss of signal) based on historical data. This is really a ’best guess’ and may not be a true reflection of what’s happened or be an accurate account of the amount of power consumed. This could lead to bills being incorrect, reducing faith in the HH system and customers’ engagement with it.

The knock-on effect of this could be a slower take-up of initiatives associated with MHHS, such as Time of Use (ToU) tariffs. The aim of such innovations is to reduce consumption (and consumer costs) in relation to specific periods, and to help facilitate easier system balancing. Both aspects of ToU would come under pressure if consumers lost confidence in HH metering and associated settlement system.

What about settlement?

Elexon manages the Balancing and Settlement Code (BSC) – a set of rules governing how electricity is traded and settled – for the UK electricity market. Settlement involves multiple runs over an extended timeline, with stages including initial, revised, and final settlements. Having several runs allows for the submission (and correction, if needed) of data over time and the settlement of disputes. In short, this ensures the accuracy of the data within the system.

MHHS

This new system will involve significant changes for the energy industry and consumers, and deliver many benefits in the process:

Faster and more accurate settlements – from the current 14 months allowed to finalise usage figures and settle disputes to just 4 months

Support for new products and services – ToU tariffs and other solutions should encourage users to shift consumption away from peak periods, saving money and emissions as they do so

A more efficient electricity system – MHHS encourages the development of a smarter and more flexible system that, according to Ofgem, will deliver a net benefit to GB consumers of £1.6bn-£4.6bn

The target date for MHHS ‘go live’ is May 2027, with a migration phase scheduled to start in September 2025 and lasting 18 months. This phase will involve suppliers moving their customers’ Meter Point Administration Numbers (MPANs) to the new settlement arrangements.

To achieve these deadlines, the industry needs to fall into line on multiple fronts, including:

1. Smart meter rollout – The transfer to smart metering across the country creates an opportunity for the sending and receiving of real-time data to become second nature. If it doesn’t happen at scale, or quickly enough, using estimated data will continue even after MHHS comes into force

2. Suppliers’ systems – Electricity providers will need to prepare their own IT systems for HH data processing, as well as encouraging their customers have HH meters fitted

3. Suppliers’ products/services – MHHS may, at some point in the future, gives suppliers an opportunity to offer services such as ToU tariffs. However, they’ll need to thoroughly test the commercial and technical viability of such services before considering any implementation so this remains a distant prospect.

4. Industry Code changes – Although this work is on track, all the relevant parties will need to be compliant to make sure MHHS is a success

Where possible, we intend to minimise the impact of MHHS on a customer’s portfolio by migrating all the MPANs they have on supply with us in the same calendar month. We’ll be able to provide a single bill for each MPAN in the calendar month when the customer’s legacy settlement arrangements are closed off. The following calendar month will be the first bill issued under the MHHS settlement arrangements.

The industry programme will determine our migration schedule. Our schedule will also be dependent on factors, such as how many MPANs we’re allowed to migrate each day and the type(s) of meter being migrated.

We’ll update customers to ensure they’re aware of programme developments.

If you’d like more information about MHHS or metering, please get in touch with our specialist Metering team.

Disclaimer

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