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

In electricity terms, ‘settlement’ refers to the balancing of the difference between a supplier’s electricity purchase of wholesale electricity and the demand from the customer.

Electricity generators and suppliers trade wholesale power in half-hourly periods. So that’s 48 settlements, per day, every day.

For customers that are non-half-hourly metered (typically smaller electricity users or SMEs), their electricity is settled using estimates of when they use electricity. This estimation isn’t the most efficient, or accurate way of settling the difference between generation and demand.

So, Market-wide Half Hourly Settlement reform aims to tackle this by switching smaller consumers to half-hourly metering.

Why does this matter to me?

If you’re currently non-half hourly metered, then you will be required (at some point) to have an AMR meter installed capable of recording your electricity consumption in 30 minute intervals and transmitting this to your supplier or data collector.

Alongside the potential for interruption to your supply, it is unknown how exactly suppliers will approach these changes with regards to tariffs and contracts.

Larger consumers who are already half-hourly metered will be familiar with the constraints of purchasing electricity contracts, including:

• quotations only being available for a short period
• bespoke pricing requirements, as opposed to ‘off the shelf’ prices or price-books, and the requirement for historic half hourly data.
• higher standing charges in many cases,
• Capacity charges (something which non-half-hourly customers do not pay)
• Higher metering charges.

So there’s potential for smaller consumers to find it troublesome to obtain quick, competitive quotations for their electricity in future. Likewise, if a ‘price-book’ tariff is selected, there could be a substantial amount of risk built into these prices, which equates to higher prices.

How can I prepare?

It is believed that those customers with accurate consumption data will be best placed to achieve competitive prices after MHHS, because if suppliers can be reassured of your accurate consumption profile, it should result in less risk having to be taken by them on your behalf. Less risk, equals lower costs.

To get ahead of this, ensuring your meters are half-hourly enabled could be a wise decision. If your current electricity meter is not able to meet the requirements of MHHS, it is likely you’ll have to have the meter exchanged anyway at some point in the future – so you may as well arrange this now, than being forced to do this in future when it might not be so convenient.

If your meters are already half-hourly enabled, then that’s great, but are you actually obtaining any real data? If you aren’t, then appointing a data collector and storing the half-hourly data could also be a great way to prepare for MHHS.

How can Cost Advice help?

We can help you by:

• Checking if your meters are already half-hourly enabled,
• Arranging for a suitable meter to be installed if necessary,
• Appointing a data collector,
• Arranging your online login for access to the half-hourly data.

Please get in touch by calling 0800 040 70 90, or by emailing enquiries@costadvice.co.uk.

Please note however due to data restrictions, we may not be able to confirm meter details over the phone, and we would encourage you to get in contact with us in writing, providing:

• Your property details,
• A recent electricity invoice,
• Your name, company name, role, email and telephone number.