Practical insights for energy companies implementing MHHS

On November 29^th, Ofgem announced a delay in the implementation of the Market-wide Half Hourly Settlement (MHHS) reform.

The MHHS programme is an industry first in that Ofgem has placed responsibility on the industry for its delivery, with Elexon appointed as the programme’s Senior Responsible Owner (SRO).

MHHS promises to unlock a new era of flexibility, innovation, and efficiency in the energy market. Yet, with timelines pushed back, the question arises: how is the energy sector reacting, and are all market players prepared to seize the opportunities this change brings?

We sat down with our MHHS experts, Brendan Scott and Ian Sykes, to explore the implications of MHHS, the benefits of acting now versus later, and what the future might hold as the sector moves towards the October 2025 deadline.

How is the energy sector reacting to the implementation of MHHS?

Brendan: “There are organisations that are further ahead in the MHHS journey than others, particularly those who are driving smart home energy or those who have adopted smart meters that are already digesting data at MHHS standards.

In a market where the margins and price caps are driving down the competitive edge, and the sector starts to offer more diverse products, granular data becomes crucial. Some energy companies have already started seeing the benefits of MHHS, others are more hesitant to make the move, seeking out the value beyond technical investment.

But at what cost? The level of data needed to ingest is set to increase costs, so it’s about what you do to generate value from that data - and from some companies, that’s still to be seen.

BJSS has worked with many companies who have gone through the trials and tribulations of implementing MHHS, and so we’ve been able to identify key insights.”

What are the benefits of adopting MHHS earlier, rather than later?

Brendan: “It’s a competitive market with relatively low margins, giving companies a competitive advantage in offering more targeted products and better visibility of energy costs. Customers are likely to switch to the cheapest providers, so companies need to incentivise with tactics like loyalty schemes.

The sooner companies can introduce MHHS, the quicker you can begin to understand, test and innovate the value generated from the data.

Ingesting huge amounts of data comes at a cost – financially and environmentally - so companies who are well-prepared can take better measures as their data landscape increases.”

What can the energy sector do to confidently implement MHHS into their business?

Ian: “The biggest risk is if energy companies defer their testing stage, decreasing their time to identify and resolve potential issues.

We’re seeing a varied approach in how energy companies are implementing and engaging with MHHS. Innovative market leaders are taking MHHS to heart and have been driving forward the development. There’s no right or wrong way, but everybody needs to be ready for the deadline as it will enable both companies and consumers to reap the benefits of flexible tariffs, etc.

We would encourage all market participants to engage with Elexon as early as possible to get their certification and have full confidence that they can drive innovation and value from MHHS.”

Brendan: “Energy companies not only need to ready themselves, but ready their customers too.

The fact that the deadline has been delayed would suggest that the market is not ready, and companies are at different stages.

Flexible tariffs are only valuable if households have a smart meter, and what we’ve seen now is that smart meter adoption is not where it needs to be for households to be able to benefit.

Are there enough participants with the granularity of data and smart meters which are able to actually share back the data on a half-hourly basis?”

Do you have any advice for companies navigating MHHS?

Brendan: “Think of the MHHS implementation more holistically and incorporate those into your business case and decisions. Learn from the good, the bad, and the ugly - leverage others for advice and work in partnerships.

We’ve seen organisations with IoT devices implemented across their networks to create better visibility, giving them opportunities to better understand their ecosystem and their assets.

But don’t do it in isolation.

You need to invest in a technology platform to take advantage of the opportunities that MHHS presents for your strategic goals.

Is it going to have the best products on the market?
Is it going to have the most flexibility for your customers?
Is it going to enable your trading teams to have better insights into market usage?”

What opportunities are there for the energy sector in implementing MHHS?

Brendan: “When you think about the premise behind MHHS, it is to create more flexibility over energy usage. Nothing is remaining the same, there’s a huge shift to renewable wind and energy sources that will need to fall in line with MHHS

I think we’ll see a drive in control over products like electric vehicles, batteries, home energy management, etc. But a lot of this comes down to the adoption of smart meters and smart products, a revolutionary change in the way that the UK market produces energy now.”

Ian: “When you have a big market change like MHHS, it gives an opportunity to disrupt the market – but will we be seeing the same players at the top? Or are we going to see new entrants rise in the market?”

Why now?

While some see MHHS as a chance to innovate and gain a competitive edge, others remain hesitant, weighing the technical investment against tangible benefits.

MHHS expert, Ian Sykes gives his first-hand perspective on how the programme can drive innovation; turning data into actionable empowerment and streamlining processes.

Read the article here