Ofgem delays half-hourly settlement deadline by over a year

The energy regulator’s decision follows concerns about the timeline being “unrealistic” and lacking industry support

UK energy regulator Ofgem has announced a significant delay in the completion deadline for the market-wide half-hourly settlement (MHHS) programme.

The MHHS programme is considered a “crucial enabler” for the cost-effective decarbonisation of the energy sector.

The MHHS programme aims to ensure that electricity suppliers and other retailers face the true costs of serving their customers.

By implementing MHHS, the industry can incentivise the development of new tariffs and services.

Moreover, it will promote more efficient use of existing and future electricity infrastructure, facilitating the integration of intermittent renewable generation and reducing the need for expensive new investments.

The primary transitional deadline, originally set for October 2025, has now been pushed back to December 2026.

This decision comes after programme managers expressed concerns about the feasibility of the previous timeline since mid-2022.

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast