Energy price cap: technical approach to market wide half hourly settlement

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.