In this blog, Energycentric explores what Market-Wide Half-Hourly Settlement (MHHS) is, how it could affect costs and sustainability goals, and the steps leaders can take to prepare.
What is market-wide half-hourly settlement (MHHS)?
MHHS is one of the most significant changes to the UK energy market in decades, and it will impact every charity.
Currently, most electricity meters (outside of large industrial users) are settled on a non-half-hourly basis, meaning energy suppliers use estimated consumption profiles to calculate usage and costs.
MHHS changes this by ensuring all electricity usage is recorded and settled in half-hourly intervals. The introduction of smart meters makes this possible, providing more accurate, near-real-time data.
Goals of MHHS include:
- Accuracy in billing: actual half-hourly data replaces estimations, reducing discrepancies.
- Fairer distribution of costs: settlement will reflect real usage patterns, rather than averages.
- Encouraging flexibility: organisations can adapt energy use to times when electricity is cheaper and greener.
- Supporting Net Zero: greater transparency on energy usage helps reduce demand at peak times and integrate more renewable generation.
Why it matters for charities
Charities operate in a uniquely challenging financial environment. Rising energy prices, the need for cost certainty, and increasing stakeholder expectations around sustainability mean that CEOs cannot afford to overlook this change.
Practical impacts include:
- More transparent energy costs: with half-hourly settlement, your organisation’s energy bills will more closely reflect when and how you use electricity. This makes budgeting more precise but could also reveal higher costs if consumption is concentrated during peak times.
- Opportunities for savings: charities that can shift energy usage — for example, moving heating, laundry, or IT server demand to off-peak hours — may benefit from lower costs.
- Increased value of energy efficiency: investments in energy efficiency (LED lighting, insulation, or smart controls) will have clearer, more measurable impacts, as savings will show up directly in settlement data.
- Carbon reporting and sustainability: many funders, regulators, and supporters expect charities to demonstrate climate responsibility. MHHS data provides a robust foundation for carbon reporting, helping charities track and reduce their footprint.
For charity leaders, the transition to MHHS is less about the technical detail and more about strategic readiness. Here are practical steps to take:
- Audit your metering: confirm whether your sites have smart meters installed, and engage with your supplier to ensure your charity is ready for half-hourly settlement.
- Review consumption patterns to identify peak demand times across your estate and consider whether any energy use can be shifted to lower-cost periods.
- Explore demand flexibility: larger charities may benefit from participating in demand-side response schemes, where reducing usage at peak times can generate income or reduce costs.
- Align with sustainability goals: use half-hourly data to support ESG reporting, funding applications, or stakeholder communications. Demonstrate that your organisation is adapting to a low-carbon future.
- Seek expert support: energy brokers and consultants (such as Energycentric) can help interpret half-hourly data, identify savings opportunities, and negotiate better tariffs in light of the new system.
While MHHS presents opportunities, there are also risks charity leaders should keep on the radar:
- Potential for higher bills: charities with unavoidable peak-time consumption may see costs rise.
- Complexity of data: half-hourly information is detailed and may overwhelm internal teams without specialist support.
- Implementation challenges: not all sites may have smart meters fitted yet, which could delay benefits.
MHHS is more than an administrative change; it is part of a system-wide shift towards a smarter, greener, more flexible energy system. For charities, it offers both challenges and opportunities. Those who engage early will be better positioned to manage costs, demonstrate climate leadership, and align with stakeholder expectations.
At a time when the sector is balancing financial pressures with social responsibility, understanding and preparing for MHHS is another way charity leaders can ensure resilience and sustainability.