What is market-wide half-hourly settlement?
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.
What does half hourly settlement mean for unmetered customers?
The timeline has all customers, including unmetered, moving to half hourly settlement from 2024 onwards with completion by end of 2025. 4. So, what does this mean for unmetered customers? It means that all unmetered supplies energy consumption will be settled on a half hourly basis. This can be broken into two further groups: 4.1.
Why is half-hourly settlement so important?
Why is half-hourly settlement so important? Half-hourly settlement is a major part of the smart, flexible energy system. It can help make the future low-carbon system that we are working towards both affordable and secure.
How many MPANs do I need for non-half hourly settlement arrangements?
Non-half hourly customers generally have more than one MPAN to support the non-half hourly settlement arrangements for a single non-half hourly inventory. There are up to four MPANs to support the settlement arrangements which split the energy consumption into four profiles, continuous, dusk-dawn, dawn-dusk and part night equipment.
How does settlement work?
Settlement places incentives on suppliers (and other market participants) to contract sufficiently to meet the needs of consumers. For suppliers, it operates by charging for any difference between the volume of electricity that they buy and the volume that their customers’ consume.
What is the process of moving a meter between NHH and HH?
2.1. When a meter moves between NHH and HH settlement, it undergoes a process known as Change of Measurement Class (CoMC). There are separate measurement classes for NHH and HH meters – so moving between NHH and HH involves a CoMC.
What is HHS 7.1?
7.1. This paper sets out our view on the barriers to cost-effective elective HHS for domestic and smaller non-domestic customers. It also provides our conclusions for how these can be addressed.
What would happen if FiT was metered and settled?
5.5. If export from FiT generation was metered and settled, then there would be no spilled energy and therefore no impact on GCF. The barrier would be eliminated. In response to the open letter, a couple of stakeholders told us that export from small-scale generation should be metered and settled. This is a longer-term consideration – for example, it would rely on FiT sites having smart meters to record export. In August 2015, DECC consulted on two options for requiring FiT sites to accept a smart meter.67 It has decided against taking immediate action, although its response to the consultation reiterated its aim of ending deemed export.68
What is SRAG in HHS?
1.22. There have been several pieces of work on HHS over the past few years. Most recently, ELEXON organised the Settlement Reform Advisory Group (SRAG). This is particularly relevant, as it sought specifically to investigate barriers to elective HHS. The SRAG reported in February 2016.10
What is a multi-party contract?
multi-party contract between the distribution network operators, suppliers and generators that relates to the connection to and use of the distribution networks. It includes the distribution network charging methodologies.
Introduction from MHHS Programme SRO
Market-wide Half-Hourly Settlement (MHHS) reform will see the electricity industry working together in a significant move forward in how electricity is used and accounted for.
Introduction from MHHS Programme Sponsor Ofgem
Ofgem’s 2021/22 Forward Work Programme set out five strategic priorities, including to deliver full chain flexibility in how we generate, use and store energy. One of the key activities within that strategic priority is to implement MHHS. This will be a vital enabler of the flexibility to support this country’s transition to net zero.
MHHS plan on a page
Ofgem has published a Settlement Reform Programme Plan with a high level view and key milestones through to 2025.
MHHS Programme Communications
This MHHS website is being developed to support the industry with information at both summary and detail level on this Programme.
