Ofgem Seeks Views on Energy Price Cap Adaptation for MHHS
Summary
Ofgem has issued a call for input on adapting the energy price cap to accommodate Market Wide Half-Hourly Settlement (MHHS). The consultation seeks views on how to adjust the wholesale allowance and potentially introduce time-of-use pricing variants to reflect efficient costs for energy price cap customers.
What changed
Ofgem is seeking stakeholder input on the technical approach to adapting the energy price cap framework to integrate Market Wide Half-Hourly Settlement (MHHS). This initiative aims to ensure the price cap continues to reflect efficient costs for customers under the new settlement system, which changes how suppliers are settled for electricity based on real-time demand.
The consultation specifically asks for views on setting an electricity wholesale allowance that tracks efficient costs, accounting for differences in serving various customer groups, and developing price cap variants for customers who may use electricity at different times of the day. Interested parties, including energy suppliers, industry bodies, network companies, consumer groups, charities, and consumers, are invited to submit their responses by May 5, 2026.
What to do next
- Review Ofgem's call for input on energy price cap adaptation for MHHS.
- Submit feedback and views to Ofgem by the closing date of May 5, 2026.
Source document (simplified)
Energy price cap: technical approach to market wide half hourly settlement
Publication type: Call for input Publication date:
25 March 2026
Closing date: 05 May 2026 Status: Open Topic: Energy pricing rules Subtopic: Energy price cap Get emails about this page Print this page
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- We are seeking views on how to adapt the wholesale allowance of the energy price cap to accommodate Market Wide Half-Hourly Settlement (MHHS).
Call for input description
The call for input sets out our initial thinking and seeks views on how the energy price cap may need to develop to accommodate Market Wide Half-Hourly Settlement (MHHS). MHHS will result in changes in how suppliers are settled when purchasing electricity to match their customers’ demand.
This call for input sets out our views on:
- setting an electricity wholesale allowance that allows the energy price cap to track and reflect the efficient costs of serving energy price cap customers over time
- if and how we account for differences in costs to serve these customers across customer groups and suppliers when setting the energy price cap
developing the energy price cap for customers who want to change how and when they use electricity, for example pay by ‘time of use’ where the price varies depending on when customers use it
To adapt the energy price cap, we consider we need to:update how we set the energy price cap level for single-rate customers (those who pay the same price for electricity regardless of when they use it)
design at least one time of use energy price cap variant (for those who pay different prices depending on when they use electricity)
consider whether further risk mitigations are required to address differences in costs to serve suppliers’ customer bases
Who should respond
We would like views from people who have an interest in how we design the energy price cap. This includes:
- energy suppliers
- energy industry bodies
- network companies
- consumer groups
- charities
- consumers
How to respond
Submit your response by 5 May 2026 by emailing priceprotectionpolicy@ofgem.gov.uk.
Call for input documents
Energy price cap: technical approach to market wide half hourly settlement [PDF, 695.20KB] Get emails about this page Print this page
Related links
Markets Regulatory Strategy and Vision to 2030
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