MHHS: Getting ready for the electricity market revolution

THIS YEAR will see the beginning of one of the biggest transformations to the electricity market to date - the Market-wide Half-Hourly Settlement (MHHS) reform - which is set to bring with it greater energy data insight for organisations across the UK.

So, what is MHHS? And, what does this mean for industrial businesses in the UK? Plenty of information is available on our dedicated MHHS hub, here I outline the main areas you need to know.

Enabling a flexible and clean electricity market

The past few years have seen huge volatility in the wholesale energy markets. The UK government has outlined its ambitions and initial policy plans to help bring energy stability and security, while also hitting its clean power targets by 2030.

To achieve this, the energy market needs complete reform, including the ability to better manage all aspects of electricity more efficiently, particularly with the decrease in 24/7 fossil fuel generation as businesses move to more intermittent renewable power sources.

Energy UK describes MHHS as “a vital enabler of the creation of a flexible, clean retail electricity market, ultimately supporting the UK in reaching net zero.”

How greater data insight will benefit businesses

It will unlock more granular and timely data to understand how and when all consumers use electricity, providing 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.

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

For businesses, it will mean more granular cost allocation, access to new products, more innovation, new technologies and flexibility services from their energy suppliers, and ultimately a more cost-efficient energy system.

Key changes to energy metering under MHHS

Under MHHS, there will be several changes to metering services. All meters, even traditional meters, will be settled half-hourly, however, those businesses with a traditional or non half-hourly meter could experience more changes than those who already have a Smart or advanced meter.

It is important to note that it is not a mandated requirement under MHHS for energy meters to be changed. That said, many organisations are choosing to do so, as there are real benefits to having Smart or advanced Automated Meter Reading (AMR) meters, as they provide a highly detailed and dynamic picture of a business’ energy use.

Meter agent roles and names will change, for example, Half-Hourly Meter Operators (MOPs) will become MSA - Metering Services (Advanced) - and Half-Hourly Data Collectors will become Advanced Data Services.

The profile class of Meter Point Administration Numbers (MPANs) will also change. After the MHHS migration is complete, profile classes will no longer be used. The only exceptions to this are profile classes 02 and 04, which will continue to be used to identify Economy 7 and 10 meters.

Importantly, under MHHS, businesses will also have more choice over who to appoint as their metering agent, making it more of a bespoke service.

The MHHS opportunity

We believe that businesses who actively engage with MHHS will see potential energy saving and carbon reduction opportunities. 

That is why energy metering and monitoring needs to be a business priority, with businesses having a greater understanding of the benefits of installing a more advanced meter and how to optimise their energy data. At the end of the day, if this useful data is not being analysed correctly, then it is meaningless. 

The role of data analysis and visualisation tools

Using an online visualisation platform can enable businesses to run detailed reports, look at consumption forecasts, compare sites and set up alerts if energy use has exceeded expected levels. This means businesses can pinpoint opportunities to invest in measures to better manage energy consumption, such as energy efficiency, helping to reduce costs and emissions even further.

However, in this era of data change, knowing where to start can be complex. That is why we have created a new guide, ‘Data and Metering Services Your Guide to this Business Essential’, which can be downloaded here: https://kntn.ly/d8e77dcd

Ben Whitelam is director of data and metering services and commercial at npower Business Solutions

For more information:

npowerbusinesssolutions.com

Tel: 0330 053 1693