Market-wide Half-Hourly Settlement (MHHS) is one of the key enablers for driving Britain towards Net Zero, bringing greater flexibility to the current electricity market infrastructure.
Ofgem predicts that MHHS will have huge benefits for energy users, saving them between £1.6bn and £4.5bn by 2045. To unlock these benefits, though, many participants will be concerned about the challenges they face before they can be realised.
Significant software changes, budget and resource constraints and other change programme commitments are just a few of the issues participants will feel they have to navigate and resolve. Concerns about customer reactions to MHHS will also be at the forefront of many participants’ minds. So will MHHS be worth it?
The Settlement process will be more accurate and quicker, reducing current timescales to around 4 months. This should reduce Settlement collateral requirements and therefore reduce entry barriers. It is also an enabler for the introduction of more innovative products and services to the market.
MHHS facilitates smarter Time of Use Tariffs which will provide greater control and visibility to consumers, allowing them to choose how best to consume electricity, shifting it from peak periods and becoming more cost effective and energy efficient. This, in turn, enables smart charging and vehicle-to-everything (V2X) technology, supporting wider EV ambitions.
The increase in data granularity that MHHS provides also improves supplier forecasting which could lower wholesale costs that can be passed onto consumers.
In short, MHHS is more than worth it but understanding what it means for your business and the best way to make the changes needed is key to minimising costs and maximising the benefits MHHS can bring.
At Engage, we understand the opportunities and challenges making your business MHHS ready can bring. We can help you understand, assess and navigate implementation so your business operations are prepared well in advance.
For more information, please contact us.