Ofgem has approved Change Request CR055 for the Market-wide Half Hourly Settlement (MHHS) Programme, introducing a 6.5-month delay to several key milestones. This decision reflects a commitment to ensuring thorough system integration testing, which is critical for the seamless implementation of this transformative initiative.
Key Updates to the MHHS Timeline
The updated timeline aims to mitigate risks associated with insufficient testing and ensure a robust and reliable rollout. Here are the revised dates:
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Migration start date: Moved from early April 2025 to late October 2025.
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Migration end date: Moved from October 2026 to May 2027.
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Transition to shortened settlement timeframe: Moved from December 2026 to early July 2027.
To prevent further delays, Ofgem plans to implement regulatory measures in early 2025, including licence modifications and updates to governance frameworks. These steps will help expedite the programme while maintaining its objectives.
Understanding MHHS and Its Importance
The MHHS programme represents a significant reform in the UK energy market. By leveraging smart meters to record electricity usage in half-hour intervals, it enables:
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More accurate billing: Consumers are charged based on actual usage rather than estimates.
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Improved demand forecasting: More granular data allows energy suppliers to predict demand more accurately.
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Innovative tariffs: Time-of-use tariffs encourage consumers to shift energy usage away from peak times, supporting grid stability and efficiency.
This initiative is a cornerstone for achieving the UK’s Net Zero targets. By reducing settlement times from 14 months to just four, the MHHS programme enhances efficiency and drives sustainability across the energy market. It offers environmental benefits while creating cost-saving opportunities for businesses and consumers alike.