MHHS presents major opportunity to reshape customer energy engagement

As suppliers remain focused on delivering the biggest industry transformation since privatisation, there is a risk that the customer perspective may not receive the attention it deserves.

Market-Wide Half-Hourly Settlement (MHHS) will reshape every part of the supplier value chain - but what does that mean for customers?

At its core, the success of MHHS depends on widespread load shifting, moving energy consumption away from peak periods. But the key question is: how do you inspire customers to engage in that shift?

Dynamic tariffs are already available, offering real savings to customers who actively manage their energy use. Those who take advantage can unlock significant cost reductions while contributing to a more efficient, lower-carbon energy system. The challenge for suppliers is engaging customers, turning active consumption into an opportunity rather than an obligation.

Can a dynamic tariff be suitable for all customers?

A dynamic tariff that benefits the broadest range of customers must be simple, transparent, and fair. While dynamic tariff adoption is growing, it’s crucial that we make it easier for customers to utilise them. Balancing accessibility with flexibility, a mass market option should offer three things:

• Predictable pricing – Fixed peak and off-peak periods make it easy for customers to understand and adjust their usage.
• Broad appeal – Works for both engaged and passive customers without requiring constant monitoring.
• Savings potential – Encourages shifting energy use to cheaper periods without complex decision-making.

Many customers have fixed energy usage patterns due to work schedules, medical needs, or other constraints. For customers who can’t shift their energy use, a suitable dynamic tariff would need to ensure fair pricing and avoid penalising those with less flexibility.

If customers are able to shift their usage, do they understand how?

While some engaged customers understand how to shift their usage effectively, many others struggle with the complexity of dynamic tariffs and the real impact of their energy choices. 

Key challenges include:

• Lack of awareness - Many don’t realise when peak periods occur or how much they could save by shifting usage.
• Unclear benefits - Savings can feel too small or uncertain, making the effort seem not worth it.
• Behavioural habits - People are used to consuming energy when it’s convenient, not when it’s cheapest.

In 2024, even customers with typical consumption patterns would have benefited from savings on dynamic tariffs. But in 2025, those same habits may not be enough - adjusting usage will be key to unlocking similar savings.

Our recent analysis showed that day-ahead electricity prices won’t always guarantee a discount against the Price Cap, exposing customers to wholesale market volatility.

This highlights the importance of proactively engaging customers and guiding them through the transition to dynamic tariffs. Suppliers must still make significant efforts to educate households on optimising their energy usage, and with the latest Price Cap increase, more customers are likely to explore alternative tariffs in search of better value.

We’re starting to see suppliers attempt to drive engagement through simple campaigns, like EDF’s Free Electricity Sundays and Octopus’ Saving Sessions. Both are effective ways to educate customers on the benefits of shifting consumption, encouraging households to take part in short-term savings rather than a long-term tariff. 

How can suppliers drive widespread load shifting?

With the introduction of MHHS, suppliers have a unique opportunity to drive widespread adoption of energy load shifting. However, making the most of this shift requires strategic planning, customer engagement, and a clear operational framework. Here’s how suppliers can successfully deliver this transition:

Understand value drivers end-to-end

To fully capitalise on MHHS, suppliers must understand the impact of Time-of-Use (ToU) tariffs across their entire portfolio, from trading through to settlements. This means grasping how shifting customer demand affects wholesale trading, hedging strategies, and settlement costs. The key is to align operational processes with financial benefits to create a sustainable business model.

Test and learn vs. business case approach

Should you build a detailed business case or take a test-and-learn approach? The answer lies in balancing speed and risk. While a structured business case is essential for long-term planning, early adoption often benefits from agile testing. The goal should be to bring products to market quickly, gather insights, and iterate - without waiting for perfection.

Customer segmentation and acquisition strategy

Not all customers will respond the same way to load shifting initiatives. Identifying segments of customers and designing products that meet their needs - such as tech-savvy consumers, high-energy users, or those with flexible consumption patterns – can ensure targeted adoption strategies and drive engagement campaigns. Acquisition efforts should focus on incentivising early adopters who can help validate the model before scaling.

Customer education and engagement

Customer participation is critical for success. Simplified messaging and clear benefits will drive adoption. Suppliers must educate customers on how ToU tariffs work, what savings they can achieve, and how behavioural shifts can benefit both them and the grid. Engagement strategies such as gamification, real-time energy tracking, and personalised insights can enhance uptake.

Technical and operational capability

Rolling out load shifting products requires robust technical infrastructure and operational capabilities. This includes integrating smart meters, ensuring accurate billing, and managing account health checks to prevent customer dissatisfaction.

Accurate billing is particularly critical in the current landscape, given Ofgem’s heightened focus on billing accuracy as part of its regulatory agenda, as covered in our recent article. Delivering a seamless customer experience is key to maintaining trust and long-term engagement whilst also ensuring compliance with evolving industry standards.

Beyond commercial gains - customer experience matters

Focusing solely on the commercial side - such as margin optimisation - can be a mistake. A well-designed customer journey, informed by real insights, ensures long-term success. The experience must be intuitive, with clear communication and proactive support to keep customers engaged.

As discussed in our recent article, there is a clear correlation between personalisation and customer satisfaction. MHHS provides suppliers an opportunity to enrich data, enabling the development of tailored products designed to meet the unique needs of specific user groups.

Avoid over-complexity

While personalisation is important, suppliers should avoid introducing excessive complexity at the outset. Overly intricate tariff structures or hyper-personalised pricing models can confuse customers and may only attract a select few. A phased approach - starting with simple, easy-to-understand products - can help build on the growing momentum for these tariffs before layering in more advanced features.

Plan B: Be ready for challenges

Not every initiative will succeed - it’s essential to have a Plan B in case operational hurdles arise. Ring-fencing projects within a beta environment allows for controlled experimentation, while selecting trial customers fairly ensures unbiased insights. Having fallback plans in place protects both investments and learning outcomes.

Are you ready?

MHHS presents a huge opportunity to reshape customer energy engagement, but success depends on creating tariffs that are simple, fair, and widely understood. Market momentum for these tariffs is growing. Suppliers must focus on segmentation, education, automation, and incentives to ensure all customers can benefit - not just those who are already engaged.

The key to success lies in balancing accessibility with innovation. Those who act early to refine their approach will be best positioned for the future of energy markets. Are you ready?

If you'd like to discuss the opportunities MHHS presents for tariff innovation and how it can help drive growth and enhance customer satisfaction, contact Jon Vincent or Matt Turner.

If you have concerns or want to learn more about the financial risks associated with MHHS, we recommend reading our blog on the £200m risk it creates.