MHHS – making smart choices

MHHS will use half hourly consumption data, as its name suggests, as the basis for settlement. However, it’s important to note that it will apply to all consumers and businesses across the UK, regardless of the type of meter they have installed.

Smart meters automatically – and accurately – measure energy consumption every 30 minutes and provide the data to suppliers and consumers alike. Devices that take an automated meter reading – AMR – are smart too. That’s because they take readings just as regularly, while also communicating that consumption data to users and the industry. It’s more common to find AMR devices on business premises rather than in domestic settings.

These smart meter characteristics obviously align with the need for half-hourly data that MHHS promotes. And yet those users without a smart meter will still be part of the MHHS programme. So let’s look at the advantages of having a smart/AMR meter in place before this new approach to settlement is fully implemented.

The advantages of smart under MHHS

The arguments supporting the introduction of smart meters – and, by extension, the establishment of a smart grid – have been around for some time. For several years, businesses and households with the right kind of meter have been able to monitor and analyse their usage. Based on these insights, they’ve been able to choose to adjust their consumption habits – or not.

Consumers with smart meters have also been able to gain financial rewards for participating in schemes that incentivise usage at cheaper times. And they’ve enjoyed the financial benefit of more accurate billing and the convenience of taking, or arranging for, fewer (if any) manual reads.

These positive experiences of smart meters point towards the advantages that users – as well as the UK energy system as a whole – should enjoy once MHHS is in place. Having half-hourly data will allow users to track their consumption, spot patterns (e.g. when they do/don’t use power; when they spend the most/least) and consider changing their usage.

For example, could a manufacturer shift its production line activities to a less expensive time and save money? Might a food storage business turn down its refrigeration units at peak times and reduce costs, while keeping its products sufficiently chilled? Having the half-hourly data available will provide the information and insights that could lead to such changes, as well as new products and services from the industry.

While every smart meter will be measuring the power consumption at a customer’s site every 30 minutes, MHHS will be amalgamating all the UK’s consumption data just as often. This will give the industry a much more accurate view (compared to now) of the national consumption picture and allow for a more precise fine-tuning of supply and demand.

What happens if there’s no smart or AMR meter installed?

All metered and unmetered supplies will transition to MHHS. So, even if you have a conventional (non-smart) meter, you’ll still be charged on a half-hourly basis under the new settlement system.

However, under MHHS, an estimation based upon a generic usage profile rather than your actual consumption will determine the amount you pay. If this sounds similar to your current process that uses estimated bills, it’s worth noting there’s a significant – and quite possibly costly – difference.

The generalised usage profiles in force under MHHS mean there’s a strong possibility that many consumers may – for some time – pay more than they do now. And, it seems, this situation will continue at least until there’s enough data to refine the profiles. What’s more, the settlement period will reduce from today’s 14 months to only 4 months under MHHS.

To avoid the potential impact of this situation, you should consider upgrading your conventional meter(s) to some kind of smart device ahead of the MHHS migration phase. Most power suppliers will do this kind of installation at no extra cost; they should also arrange for the changeover to happen when it’s convenient for your business. Many will work with you – and your energy broker, if you use one – to minimise the impact. Typically, the transition to a smart device will take around 40 minutes, meaning you’ll only experience a short power outage.

Of course, if you already have an AMR device or smart meter installed, MHHS will have no discernible impact – unless your meter’s failing to collect or communicate usage data. If that’s the case, let your supplier know so they can try and rectify the issue.

If you’d like to get in touch about upgrading your meter(s) or fixing a fault, please contact our Metering experts via our website.

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