Market-wide Half-hourly Settlement (MHHS)
Market-wide Half-hourly Settlement (MHHS)
Market-wide Half-hourly Settlement (MHHS)
What is Market-wide half-hourly settlement?
Energy Settlement reconciles the difference between the energy purchased by suppliers and the amount sold to customers. Currently, whilst generators and suppliers trade electricity in the wholesale market in half-hourly periods, most customers are ‘settled’ on a non-half-hourly basis using estimates. These estimates are based on the average consumer’s usage, and the meter reads they have submitted.
As smart meters can record the amount of energy consumed within every half hour of the day, there is an opportunity to make the settlement process more accurate. MHHS will enable the industry to move to a more intelligent, flexible energy system. This will act as an enabler for innovative products, services and tariffs and more efficient management of the electricity networks. Ofgem’s analysis predicts that MHHS will bring net benefits for consumers between £1.6bn and £4.5bn over 2021-2045.
RECCo's role
RECCo is responsible for ensuring that MHHS requirements that impact the Retail Energy Code and REC Services are delivered and that the solutions have positive outcomes for consumers.
Objectives and Scope
During this project we will:
Engage with MHHS programme governance to support design, build, testing and implementation
Update the Retail Energy Code to reflect new MHHS systems and processes
Make changes to REC Services to support the new MHHS Target Operating Model and end-to-end design
Update the REC Operational Services and Operating Model to reflect the new market arrangements
Engage with REC Stakeholders and ensure that REC Parties meet their new obligations through MHHS qualification and updated Performance Assurance Techniques.
Project Workstreams
Overview/Aims
This workstream will deliver the required changes to the REC baseline by updating the REC drafting and consulting with stakeholders and MHHS governance. We expect multiple versions of the REC drafting to be produced.
Overview/Aims
This workstream will deliver the required changes to REC Services. This includes the Central Switching Service (CSS), Electricity Enquiry Service (EES), Electricity Retail Data Service (ERDS) and Secure Data Exchange Service (SDES).
Overview/Aims
This workstream will ensure that required REC Services participate in appropriate MHHS test phases, mobilising and operating the necessary environments, processes, and resources to support the successful delivery of these programme milestones.
Overview/Aims
This workstream will ensure that required REC Services participate in appropriate MHHS test phases, mobilising and operating the necessary environments, processes, and resources to support the successful delivery of these programme milestones.
Related news
Ofgem approves changes to the Retail Energy Code to make Market-Wide Half-Hourly Settlement possible
Introducing the Electricity Enquiry Service (EES) API Sandbox: Preparing for Market-wide Half Hourly Settlement (MHHS)
Event postponed – Come and speak with us: Countdown to Market-Wide Half-Hourly Settlement
Get Involved: Test the New Market-Wide Half-Hourly Settlement EES API
Webinar round-up: Countdown to Market-Wide Half-Hourly Settlement
Find out more
We will keep you up to date as the project progresses, and provide a monthly update via our newsletter.
If you have any comments or questions about our MHHS Programme, you can contact the team at mhhs@retailenergycode.co.uk
