MHHS, or Market-wide Half-Hourly Settlement, is one of the most decisive changes to the UK electricity market in decades. While it may sound technical, its purpose is simple. It aims to create a smarter, more accurate way to measure and settle electricity usage.
For businesses, MHHS will change how energy consumption is recorded, billed and managed. Understanding what that means now will help you prepare for the transition.
What is MHHS?
MHHS stands for Market-wide Half-Hourly Settlement. It’s a reform programme led by Ofgem that will move all electricity meters onto half hourly settlement.
Today, larger businesses with advanced meters are settled using half hourly data. However, since the official rollout on October 22nd 2025, smaller businesses have begun transitioning to the newer system, and will continue to do so until May 2027.
Under MHHS, all businesses with smart or advanced meters will have their electricity usage measured and settled every 30 minutes. This creates a more accurate reflection of how and when electricity is used.
The aim is to modernise the electricity market so that it better supports flexible demand, renewable generation and smarter energy management.
Why Market wide Half Hourly Settlement is being introduced
It’s clear that the energy system is changing. Renewable generation is increasing, demand patterns are evolving, and businesses are adopting new technologies such as electric vehicles and heat pumps.
The current settlement system wasn’t designed for this level of flexibility. As a result, estimated data makes it harder for suppliers and network operators to balance supply and demand efficiently.
Market-wide Half-Hourly Settlement improves visibility across the grid. With more precise data, suppliers can price energy more accurately and respond more effectively to real time demand.
For businesses, this both creates opportunities as well as responsibilities.
How MHHS affects your business energy contracts
One of the main impacts of MHHS is on billing accuracy. If your usage is settled using half hourly data, your charges will reflect your real consumption pattern and not solely an estimate.
This may influence how business energy contracts are structured in the future:
- Suppliers will have clearer insight into when you use electricity.
- Peak usage periods may carry different pricing signals compared to off peak periods.
If your business operates outside traditional working hours or has flexibility in how and when energy is used, this data could support smarter tariff decisions.
As time passes, Market wide Half Hourly Settlement is expected to encourage more innovative business energy tariffs that reward flexibility.
Will MHHS increase business costs?
For most businesses, MHHS isn’t designed to increase direct charges. It’s a change to the settlement system, not a new tax or levy.
However, greater transparency means consumption patterns matter more. Businesses that use large amounts of electricity during peak periods may see different pricing structures at renewal.
On the other hand, companies that can adjust usage to quieter periods may benefit from more competitive rates as suppliers refine business energy tariffs using accurate half hourly data.
The overall outcome depends on how your business consumes electricity.
What should businesses do now?
MHHS is being implemented in stages. While suppliers and data services will manage the technical changes, businesses should remain informed.
Consider the following steps:
- Confirm if you have a smart or advanced meter
- Review your current consumption profile
- Assess peak and off-peak usage patterns
- Discuss MHHS readiness with your supplier
Understanding your load profile will place you in a stronger position when reviewing future business energy contracts.
The bigger picture for your business
MHHS supports a more modern electricity system. With better data comes better visibility, and with better visibility comes the opportunity to make informed decisions.
Market-wide Half-Hourly Settlement is expected to improve competition, encourage innovation in business energy tariffs, and support the transition to a lower carbon grid.
For your business, the most important factor is awareness. The move to half hourly settlement will happen across the market. Those who understand their energy usage and engage with the change will be best placed to manage costs and identify opportunities.
If you would like to understand how MHHS could affect your business energy contracts, United Gas & Power (UGP) is more than happy to assist. Contact us today.
