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Two significant changes are taking place in the UK energy market: Market Wide Half Hourly Settlement (MHHS) and proposed new regulations for energy brokers. For care home owners, the first is largely a technical change to how electricity usage is recorded and settled, while the second aims to improve protection against misleading sales practices and excessive commissions.
Energy is a substantial operating expense for care homes, where heating, lighting, laundry, catering and essential equipment must operate throughout the day and night.
With energy markets continuing to evolve, care providers may receive unfamiliar communications from suppliers, brokers or other organisations about changes to their electricity arrangements.
Understanding which developments require action and which can be managed in the background is important.
Peter Bryant, Quality Care Group's specialist energy adviser, explains the changes and what they could mean for care businesses.
Market Wide Half Hourly Settlement is a major reform of the electricity market in Great Britain.
It changes how electricity consumption is measured and accounted for within the energy industry's settlement systems.
Historically, much of the market has relied on estimated consumption patterns to calculate how electricity suppliers should be charged for the energy used by their customers.
MHHS enables suppliers to use more accurate information about electricity consumption in individual 30 minute periods, where suitable data is available.
The reform is designed to improve settlement accuracy, encourage greater flexibility in electricity usage and support the development of more innovative energy tariffs.
The migration programme began in October 2025 and is scheduled to continue until May 2027.
According to the MHHS Programme, more than 25 million electricity meter points had migrated to the new arrangements by October 2026, representing over 70% of the market.
For most care providers, the changes will take place largely within the industry's existing systems.
Not automatically.
MHHS does not, by itself, mean your existing electricity contract will be cancelled or replaced.
It also does not automatically change your agreed unit rates or standing charges.
Importantly, the reform does not mean that care homes will be forced onto a tariff where electricity prices vary throughout the day.
However, the way energy suppliers assess consumption and develop future products may evolve as the new settlement arrangements become established.
If you receive correspondence about MHHS, it is sensible to check what action, if any, is actually required before making changes to your existing arrangements.
Potentially.
One of the longer term benefits of MHHS is the opportunity to better understand when electricity is being consumed.
For care homes, this information could help identify patterns in energy usage.
For example, a provider may discover that certain equipment or activities account for higher electricity consumption during particular periods.
Where operationally appropriate, there may be opportunities to adjust some activities to improve efficiency.
However, care homes have essential requirements that cannot simply be moved to different times of day.
Heating, resident care, medical equipment and other critical services must continue to operate according to residents' needs.
Any changes to consumption should therefore be assessed carefully, with resident safety and quality of care remaining the priority.
Not necessarily.
Time of use tariffs charge different electricity rates depending on when energy is consumed.
These arrangements may benefit businesses that can move substantial consumption into lower cost periods.
However, care homes typically have significant electricity demand throughout the day and night.
A tariff offering cheaper electricity at certain times could be less attractive if higher rates apply during periods when the care home uses substantial amounts of energy.
This is where specialist analysis of consumption data can be valuable.
Rather than assuming a new tariff will deliver savings, care providers should compare the likely overall costs against their existing arrangements.
The government is progressing plans to regulate third party intermediaries, including energy brokers and certain price comparison services.
These organisations play an important role in helping businesses find and arrange energy contracts.
Many provide valuable advice and ongoing support.
However, concerns have been raised about the conduct of some brokers, including misleading sales practices, excessive commissions and a lack of transparency.
The government's Energy Independence Bill includes proposals to appoint Ofgem as the regulator for these intermediaries.
The proposed framework would give Ofgem powers to establish standards, require authorisation, investigate misconduct and take enforcement action.
The government estimates that the measures could save small businesses more than £300 million over the next decade.
The detailed regulatory requirements will be developed as the legislation and implementation process progress.
Care home owners and managers may receive unsolicited calls or emails offering cheaper energy contracts or claiming that urgent action is required.
Not every unsolicited approach is inappropriate, but some sales tactics should prompt caution.
Potential warning signs include:
Before agreeing to a new energy arrangement, verify the organisation's identity and understand the terms being offered.
Where possible, ask for information in writing and seek an independent review of the proposal.
Energy contracts should only be arranged through an appropriate and authorised process.
However, disputes can arise where businesses believe they have agreed to something different from the contract ultimately put in place.
Care providers should be particularly careful when sharing account details or providing verbal or written authority to unfamiliar organisations.
Before signing, check the contract duration, pricing structure, renewal provisions and any applicable fees or commissions.
If you are unsure about an approach, seek advice before proceeding.
If your electricity supplier contacts you about MHHS, review the information carefully.
The reform does not automatically require you to change your existing energy contract.
Where suitable data is available, understanding when your care home uses the most electricity may help identify opportunities for future efficiency improvements.
Review your existing electricity and gas arrangements well before renewal.
This allows time to monitor market conditions and consider appropriate procurement options.
Avoid making decisions under pressure.
Check the identity of unfamiliar brokers and ask for clarification of any claims about compulsory changes, contract terms or potential savings.
An experienced energy adviser can help assess whether a proposed tariff, supplier or contract arrangement is appropriate for your organisation.
This is particularly useful for care groups managing multiple properties or substantial energy consumption.
Market Wide Half Hourly Settlement changes how electricity consumption is recorded and settled within the energy market. It is primarily an industry reform and does not automatically require care homes to change their contracts.
MHHS does not automatically increase existing agreed electricity rates. However, future supplier pricing and tariff structures may evolve as more detailed consumption data becomes available.
No. MHHS does not mean care homes must automatically switch to time of use tariffs.
Potentially. More detailed consumption data may help identify opportunities to improve energy efficiency or assess alternative tariffs. Actual savings depend on usage patterns and contract terms.
The government is progressing legislation to introduce direct Ofgem regulation of energy brokers and other relevant intermediaries. The new framework is being developed and should not be treated as fully operational yet.
Ask for the claim in writing and verify it with your existing supplier or a trusted energy adviser before agreeing to any changes.
The energy market is becoming increasingly complex, but not every industry development requires care home owners to take immediate action.
MHHS is primarily a technical reform that could create opportunities to better understand electricity consumption and evaluate future tariffs.
Meanwhile, the proposed regulation of energy brokers aims to improve transparency and protect businesses from poor sales practices.
At Quality Care Group, our Business Solutions offering connects care providers with specialist energy expertise to help them navigate these developments.
I work with care businesses to review energy contracts, monitor market conditions, assess consumption data and identify opportunities to manage costs.
I also provide support with invoice queries, supplier communications and contract renewals.
For care home owners, having access to someone who understands both the energy market and the operational demands of the care sector can help make these changes easier to manage.
This article provides general information about energy market developments as at November 2026. Regulatory arrangements, supplier terms and energy tariffs may change. Individual circumstances should be reviewed before making contractual decisions.
