Electricity market reform: what does this mean for businesses?

For the UK to successfully decarbonise, we need to radically reshape the way in which our energy sector operates.

This is because as we shift to more intermittent renewable power sources and decrease 24/7 fossil fuel generation, we’ll need to manage all aspects of electricity more efficiently.

So in addition to decarbonising generation, we need to change the way we supply, trade, consume and interact with electricity – so that it becomes far more targeted, responsive and flexible.

A key enabler of this energy transformation will be Market-wide Half-Hourly Settlement (MHHS) – a revolutionary project instigated by the government-appointed energy market regulator Ofgem.

The biggest change in 40 years

MHHS is the biggest change to impact the electricity sector since privatisation. At its heart is unlocking more granular and timely data to understand how and when all consumers use electricity.

Once implemented, MHHS will provide an incredible level of visibility into how much electricity is being consumed for every 30-minute period throughout the day and night – that’s 48 data points for every UK meter in every 24-hour period.

Facilitating a more accurate energy system

Having access to all this insight will help to support an energy system that can forecast, generate and distribute electricity far more accurately and efficiently than ever before.

MHHS will also support the more flexible use of electricity – which we’re already starting to see with ‘time of use’ tariffs emerging to incentivise the use of energy at times of abundant supply and away from peak-demand periods.

Consumers will benefit from more accurate - rather than estimated - energy invoices, access to new products and flexibility services, and ultimately a more cost-efficient energy system.

But to get to the end goal, there is a lot to do behind the scenes.

Working on your behalf

The energy industry is working together right now on the industry architecture that will enable so much more data to be processed.

The responsibilities of meter service providers are also changing, with new roles emerging for the gathering, analysis and delivery of meter data.

At nBS, we will be taking care of all aspects of MHHS – and will ensure all our customers know exactly what's happening and when.

The timeline for delivering MHHS starts in April 2025 and runs through 2026. Over the coming months, we will be communicating more about the specific changes and steps involved in MHHS – and advising what, if anything, you need to do.

Hear from the experts

If you want to know more about the wider MHHS project – including key changes and potential benefits for business consumers – you can read our latest blog here or watch our webinar on demand from Tuesday 16 July at 10:30.