Regulatory Bulletin: The future energy market - systems, pricing and reform
6 July 2026 | 7 minutes
The UK energy market is evolving, with major reforms underway that will change how electricity is measured, settled and priced. From the rollout of Market-wide Half-Hourly Settlement (MHHS) to wider Electricity Market Reform, these changes aim to deliver greater accuracy, transparency and flexibility across the energy system.
Market-wide Half-Hourly Settlement (MHHS)
The UK electricity market is undergoing a major transformation through the Market-wide Half-Hourly Settlement (MHHS) programme1. This reform is designed to improve billing accuracy, increase cost transparency and enable more flexible, data-driven energy solutions, supporting the transition to net-zero emissions. For most customers, MHHS will not require any action and will not change existing contracts. However, it will improve data quality and billing accuracy over time. In this section, we summarise industry progress, outline Shell Energy’s approach and explain what this means for customers and TPIs.
What MHHS means for customers
Under MHHS, electricity consumption will increasingly be settled using actual half-hourly data rather than averaged profiles. For customers with smart or Automated Meter Reading (AMR) meters, usage will be recorded in 30-minute intervals, providing more accurate and reliable consumption data.
Why MHHS matters
Smarter data insights - Half-hourly data gives a clearer view of how and when energy is used, helping customers better understand consumption patterns and identify opportunities to manage usage.
More accurate billing - Settlement based on actual usage supports more accurate and timely billing, reducing reliance on estimates and reconciliation over time.
Supporting flexible and low-carbon energy - MHHS creates the foundation for more flexible products and pricing structures, enabling customers to benefit from demand-side response and support decarbonisation goals.
Industry progress
MHHS is now firmly into delivery, with customer migration underway across the market. Millions of electricity meters have already been brought into the new settlement arrangements, and migration activity is continuing to scale up as more participants move into delivery.
This reflects strong progress across the industry, with the programme on track to complete migration ahead of its final milestones. For customers, this means the transition is actively happening in the background, with suppliers managing migration in a phased and controlled way to minimise disruption.
Shell Energy’s approach
Shell Energy UK is part of Qualification Wave 3 and has now successfully achieved qualification for MHHS migration. We are planning to begin migrating customers from August 2026. Migration will be phased to minimise disruption, and in most cases customers and TPIs should see little to no operational impact.
We are currently focused on ensuring customer data meets industry requirements, resolving any outstanding issues and preparing our systems and processes for migration. We are also progressing targeted meter upgrades where appropriate.
We will contact customers and TPIs directly if any specific action is required. Otherwise, no action is needed at this stage.
Maximising the benefits
If you do not yet have smart or AMR metering, now is a good opportunity to consider an upgrade. These meters provide half-hourly data, giving greater visibility of energy usage, supporting more proactive cost management and enabling access to emerging flexible products. In some cases, maintaining traditional (non-smart) metering may result in increased costs, which could be reflected in your bill. If this applies to your sites, we will contact you directly.
If you would like to discuss metering upgrades or understand how MHHS may affect your sites, please contact us at SEUKL-Smartmeter@shell.com.
Electricity Market Reform
The UK Government is continuing its programme of Electricity Market Reform through the Review of Electricity Market Arrangements (REMA). Following the conclusion of REMA in 2025, the Government has confirmed that it will retain a national wholesale electricity market, with reforms now being taken forward under a new programme known as Reformed National Pricing (RNP)2.
Latest developments
In April 2026, the Government published its Reformed National Pricing delivery plan, setting out how these reforms will be developed and implemented. The delivery plan confirms that reform will focus on improving how the existing market operates, rather than introducing a fundamentally different pricing model. Key areas of focus include:
Stronger signals for where new generation is built: proposals to better align investment decisions with the locations where energy is needed, including reforms to planning, connections and network charging.
Reducing system constraints and inefficiencies: measures to lower the cost of managing grid congestion and reduce wasted energy across the system.
Reforms to balancing and settlement arrangements: changes to how the system is operated in real time, including how supply and demand are balanced and how participants are settled.
Consultation on siting and investment mechanisms: a specific consultation within the delivery plan seeks views on how market signals and planning frameworks should influence where generation and storage assets are developed.
Alongside this, the government has also announced a package of measures aimed at reducing the influence of gas prices on electricity prices, reflecting the current “pay as clear” pricing mechanism where gas generation often sets the wholesale price.
What this means for customers
At this stage, these reforms are part of a longer-term policy programme and will not result in immediate changes to customer contracts or pricing.
However, they are expected to shape how electricity prices are formed in the future, particularly as the UK moves towards a more renewables-led system. This may influence the structure of products and price signals available in the market over time.
Where to find more information
Further detail on the proposed reforms and consultation can be found in the government’s Reformed National Pricing delivery plan3. Shell Energy will continue to monitor developments and provide updates as the programme progresses.
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