Request a Demo

The Revolution in Energy Billing: Embracing Market-wide Half-Hourly Settlement with Utilidex

Market-wide Half-Hourly Settlement

In an era where sustainability is paramount, the transition to Net Zero is no longer an aspiration but a necessity by 2050. Supporting this transition in the UK’s energy sector is the implementation of the Market-wide Half-Hourly Settlement (MHHS). The MHHS initiative is not only a cornerstone for a sustainable future but also a pathway to a more efficient and cost-effective electricity system. 

 

The Energy White Paper ‘Powering our Net Zero Future’ outlines a comprehensive plan to transform the energy landscape into one that is fairer, greener, and more sustainable. Central to this plan is the MHHS programme, managed by Elexon under the directive of Ofgem. The initiative involves coordinating the transition of approximately 180 organisations within the energy sector, including the migration of over 30,000,000 non-half-hourly meters to MHHS-compliant metering systems. This requires all UK suppliers to convert their meter collections to record consumption every half-hour has had its deadline extended by over a year, moving from October 2025 to December 2026.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Understanding MHHS: A Leap Towards Net Zero   

MHHS is a transformative mechanism designed to accurately measure and settle electricity consumption on a half-hourly basis. By settling energy consumption half-hourly, MHHS allows for a more dynamic pricing structure, encouraging consumers and businesses to adapt their energy use in response to price signals, thereby promoting energy efficiency and reducing costs. 

The Benefits: Why MHHS Matters to Suppliers  

MHHS offers significant benefits to energy suppliers. It provides access to data that is both more accurate and promptly available, enhancing their capabilities in demand forecasting, energy procurement, and customer service. Suppliers encounter the real costs of customer consumption, aiding in energy forecasting and ultimately leading to cost savings and most importantly, innovative products. 

Embracing the Future with Innovation before 2026 

MHHS also impact Utilidex software product offerings in the following ways:  

Energy and Carbon Analytics

 

Accurate data and user-friendly graphics are crucial for understanding energy use, carbon, and costs. With MHHS, the importance of educating customers on our platform about ways to change behaviour and the effects of new decarbonisation projects become more essential for reducing carbon footprints. With the great amount of data, including financial data, we can measure and share the benefits of these efforts to support our customer’s future business plans.

Flexible procurement

 

With MHHS, flexible procurement becomes more attractive to mid-sized corporates. And we expect greater adoption of the new products between now and 2028. With Utilidex’s flexible procurement, both customers and suppliers gain insight into future energy costs (using Mark-to-Market) and learn the benefits of not purchasing the entire energy requirement upfront (as opposed to a fixed price contract). 

Bill Validation

 

MHHS allows sophisticated bill validation for a great number of corporates, achieving accuracy on the first attempt is crucial to minimise administrative expenses and encourage timely payment. Additionally, when customers dissect their bills into detailed formats, they gain a thorough insight into the effects of time-of-use charges, aiding in cost-saving strategies and identifying chances for demand flexibility. 

Portfolio Management

 

Effective energy portfolio management is essential for maintaining a profitable energy supply business. With MHHS, there will be exponential growth in meter data and it will be important to balance fixed contracts with floating or flexible ones, securing margins through a well-financed, effective hedging strategy that minimises exposure to market price fluctuations and counterparty risks. All risks should be identifiable and measurable. 

 

Our team has worked in the energy sector for over 20 years. We are really passionate about two things. One, making sure that great people like you have the best possible products to help you to excel in your work. And secondly, making sure you have access to the very latest technology innovations. These are the two things that will continue to guide us in our decision making and advancements of our energy products.  

If you are interested in our products and how we can help you, please don’t hesitate to contact Mike McCloskey at [email protected]. We’re here to answer any questions you may have about reaching net zero.