Our Supplier guide to Market Wide Half Hourly Settlement
Don’t get left behind
Our major concern for every customer is that you are ready for the data explosion and big system changes that MHHS will bring. There are significant costs in making the changes, but there are also many clear benefits and opportunities that will give you value down the track. If you don’t get the changes right, you will probably get left behind.
UK energy suppliers are about to undergo a colossal change. In the next three years, Ofgem will introduce a ‘half-hourly’ settlement. The new mandated rules will require electricity companies to improve their settlement processes and help energy users save money.
By measuring energy in precise 30-minute chunks, the new system will take the guesswork out of energy bills and usage. Suppliers will be required to process data about exactly when people use electricity, clocking our peak times during the day and quieter moments overnight. And it’s good news for consumers: with better data, energy companies will have an incentive to offer people new ‘time of use’ tariffs – helping savvy households save money. Ofgem estimates it could save consumers up to £4.5 billion.
What’s does this change mean for suppliers?
This will be a major change for UK energy companies – retailers and their agents. Every provider will have to process more data than they can handle now – much more. For a supplier with one million supply points, you’ll be looking at 48 meter readings a day, over 30 days, across all your meters. That’s more than one billion readings every month. And each of those readings needs to be processed, stored, and billed like clockwork.
Most suppliers are not ready to process a fraction of that today. Without the right support, navigating the change will be difficult, expensive, and time-consuming.
Ofgem’s first programme readiness assessments start in October 2022, meaning now is the time to mobilise your team and find expert partners.
ESG has been fortunate to have lived through and learned from all the big changes in the energy industry over 2 decades. We understand that data is precious. We’ve helped our customers adapt and thrive through:
- The nationwide smart meter roll out – 40% of the UK’s smart meters are supported by our platform.
- We’re proud to have supported the faster switching programme by launching 29 suppliers into the central switching service. Our operating teams switched 6,000 homes and businesses within the first three days.
We develop for what’s coming next, not what is just ahead.
In sport, the best players think about the next move; where the ball is going to be, not where it is now. That kind of anticipation creates space and opportunities. It’s our job to think ahead and imagine what our customers need, sometimes before they begin to imagine it themselves.
As you would expect, we’ve been working hard in anticipation of MHHS so that our customers can focus on their businesses while we take care of the complex shift to half-hourly settlement.
We have future-proofed all our existing products to make sure that our partners are ready. Specifically:
- For suppliers, that means updated market participant solutions.
- For metering agents, that means an updated metering solution. And
- For smart systems, that means updates across our smart metering platform.
These upgrades will be supported by our all new, consolidated data platform.
Our flexible and fully compliant technology will help our customers adapt confidently to the new half-hourly requirement.
- Our all-in-one solution provides better forecasting, billing, market connectivity and customer engagement
- Our platform is easy to scale, as your customer base grows
- And with ESG, you won’t just process more data: we’ll work with you to secure it, store it, manage it, and use it – however best suits your business.
Learn more about Market Wide Half Hourly Settlements at our upcoming Smarter Energy Insights Forum event on September 29th in London – please use the link below to sign up to our free event. Otherwise, click here to contact our expert MWHHS team for advice about how to benefit from the upcoming industry changes.
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