The MHHS programme is enabling flexibility across the energy system

We can see the change happening in real time. As of September, 63.9% of Metering System Identifiers (MSIDs) have migrated. Suppliers expect to migrate most traditional meters by October 2026, leaving two waves to still be completed. For the most part, these final waves involve more complex metering such as automated meter reading (AMR) devices. So far, the success rate has been 100%. But the more abnormal systems remaining may prove challenging.

At the same time, we’re seeing customers becoming more engaged with their metering. They contact us looking to make the upgrade, and are increasingly reluctant to be billed based on estimated third-party data. They understand that the changes coming through could result in increased third-party charges and fluctuating costs too.

The truth is sinking in: MHHS is really happening, and it may impact them.

From implementation to opportunity

In the first half of next year, the MHHS programme should be fully implemented. Suppliers will have migrated companies’ meters and gain access to more granular consumption data.

The implementation of MHHS could unlock a range of new tariffs for customers, including time of use (ToU) tariffs that could be within-day or within-week, or vary across seasons. There’s also likely to be increased competition in the market – the result of increased differentiation. For example, granular consumption data could support greater tariff innovation and enable suppliers to develop products for specific customer segments.

Businesses of all shapes and sizes stand to benefit from these changes. Half-hourly intervals entail 48 periods of recorded usage in a given day, enabling more bespoke pricing arrangements. In an extreme case, a company could even sign up for a contract with their supplier that has 48 different prices, and manage their energy usage in line with that rapidly-changing pricing.

Over time, companies that get to grips with their usage may be able to secure better rates and receive better energy services compared to the old-fashioned bill and refund model. They may even find that their supplier or agent will identify and recommend ways for them to shift their demand and save money.

Companies that also participate in demand-side flexibility services stand to benefit the most from these changes. Not only can they adapt their consumption in line with half-hourly metering, but they can also generate, store, and sell energy using those same increments. The variable pricing that granular data affords means that organisations that generate their own energy can use it when prices are high to reduce costs – or they can sell it at the best possible rate.

Is half-hourly settlement just the beginning?

Half-hourly metering may only be the beginning. While there is no explicit confirmation that the UK will follow in Europe’s footsteps in adopting a system of 15-minute metering, the MHHS paves the way for an even more granular approach to monitoring and billing energy use.

As it stands, the Government’s latest policy documents make no firm commitments regarding the second package of planned reforms. However, it does note that “Shortening the ISP to either 15 or 5 minutes” is on the table. Settling every 15 minutes, or even every 5, would provide a market-wide opportunity to balance costs quicker and enable even greater flexibility.

There is of course a risk of too much complexity. Customers might find 96 individual data points on a daily basis overwhelming, let alone the 288 they would receive with reporting every five minutes. But that granularity of data doesn’t necessarily mean every single increment needs to be engaged with or priced individually. Rather, it simply gives suppliers the opportunity to more targeted in the tariffs they offer customers.

If a business barely uses energy at night, for example, there’s no need to carefully price the difference between consumption at 3:30 a.m. and 3:45 a.m. But if they employ sophisticated demand response systems to better manage their usage during peak times, they would benefit from a more flexible, bespoke pricing model during the day.

The MHHS programme ushers in a brave new world for energy metering in the UK. Looking forward, the sheer variety of possible contracts that suppliers can offer businesses is dizzying. But they all come down to one thing – choice. Customers will be able to pick from a variety of suppliers and contracts, determining what best suits their energy needs. That’s a good thing.

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