Choosing the right business electricity supplier is an important part of managing energy costs. With the introduction of Market-wide Half-Hourly Settlement (MHHS), businesses across Great Britain can benefit from a more accurate understanding of when electricity is used. By recording electricity consumption in 30-minute intervals, half-hourly settlement helps businesses identify usage patterns, monitor peak demand and make more informed decisions about their business electricity contracts.
What is a Half-Hourly Electricity Settlement?
The method for determining the amount of electricity to be accounted for, based on customer use, is called settlement. Many customers were previously settled based on an estimated consumption profile. They were not always certain as to the exact time of day when a specific business used electricity. Half-hourly electricity settlement means electricity consumption is measured in half-hours.
A business could consume 500 kWh in a day, for instance. The half-hour data will give an indication of what occurred during those 24 hours. The use of the equipment may be very light during the night, and high when the equipment is turned on in the morning, and again later in the day.
What Is MHHS?
It is a reform of the electricity settlement system that is to be implemented across Great Britain. The goal is to shift customers to the actual half-hourly consumption profile instead of the older estimated profile. Half-hourly consumption data has been used for several years to settle medium and large businesses. MHHS extends this strategy to the broader electricity market, comprising smaller businesses and homes where electricity profiles were previously estimated. It started in 2025 and will be rolled out until 2027.
How Does a Smart Meter Fit In?
A smart meter measures the amount of electricity used at regular time periods and can transmit the data to your electricity supplier automatically.
For instance, as the ovens, refrigerators, and other kitchen equipment are turned on, a restaurant may experience an increase in demand prior to its opening. During the working day, an office might consume a lot of electricity, but during the night, very little. The retailer can experience consumption after the hours of opening.
What are Smart Tariffs?
Half-hourly data can be used to help with time-of-use tariffs, which charge different amounts for electricity at different times of the day. This enables businesses to understand how electricity is likely to affect costs and to plan for it accordingly. For instance, a business employing battery storage might fill up its battery when costs are lower and draw the electricity when it is more expensive. Costs may also be optimized by allowing businesses that do not have batteries to adjust their charging schedules, or actions such as equipment charging or machine operation, to other times of the day.
Why is Half Hourly Settlement important for your business?
Half-hourly data provides a view of the times when consumption is increasing or decreasing. This can be helpful in an energy peak investigation. If power consumption is high in the morning, for instance, then you can check what's consuming the power at this time.
● It may be the starting of a few machines simultaneously.
● It may be that the heat or air conditioning systems are turning on.
● It may also be the start of a manufacturing process.
The same information can be used to identify unusual consumption. If a site is supposed to be closed but it's still operating, it gives you a reason to look around at what's still on. Any other period can be compared as well.
● The days of the week may be different from the weekends.
● Winter can be a different season from summer.
● Changes in consumption can occur as a result of equipment installation or changes in operating hours.
Will Half-Hourly Settlement Increase an Electricity Bill?
Not automatically! It's not true that every business will pay more for electricity. Your actual costs depend on your contract details: your tariff, unit rates, total electricity usage, and when your business uses power. If your business has demand, it might be possible to move some of your electricity use to lower-cost times.
What are businesses to do now?
Use your own electricity details. Break down the overall kWh use to determine the peak use periods. Your supplier may be able to give detailed usage data that indicates what you have used during the day and how. Next, search for patterns.
● What is your daily morning rush hour?
● Is there any overnight electricity use?
● Are there differences in consumption between weekdays and weekends?
● Is it greater at specific times of the year?
● If power usage is still high once the building is closed, what equipment are they using?
The above information should be taken into account when looking at your business electricity contract, along with the price and terms.
What does a half-hourly settlement mean for the future of business energy?
Businesses will gain insight into when electricity is used as MHHS is rolled out throughout Great Britain. This can help with the decision-making process regarding energy contracts, energy purchases, and electricity expenses. If the business works in a way that half-hourly data can provide the information, the business can think about using electricity not just in terms of how much electricity, but when electricity is used. This can help with demand flexibility, energy storage, and other ways to handle energy costs over time.
Conclusion
The information is valuable for investigating energy peaks, for reviewing equipment schedules, for considering time-of-use tariffs, and for reviewing your business electricity contract. Business energy data will be an increasingly important element to manage electricity use as MHHS is deployed across Great Britain.
