Half-hourly business electricity contracts

What changes when a supply is settled half-hourly

Electricity settlement is the industry process that works out how much electricity each supplier's customers used, and when, so the costs can be allocated correctly. For a half-hourly settled supply, consumption is recorded for each half hour of the day (48 periods) and settled on that actual data.

For a buyer, the practical difference is this: a supplier pricing a half-hourly supply can see when you use electricity as well as how much. Two businesses with the same annual consumption can receive different prices if one uses most of its electricity in the early evening on weekdays and the other runs a steady load through the night.

What a half-hourly meter is, and how it differs from other business meters, is explained on our sister site Business Gas and Electric. This page is about comparing the supply contract.

Why your consumption profile matters to the price

The cost of supplying electricity is not the same at every hour. Wholesale prices move across the day and the year, and some network costs are charged differently at different times. When a supplier prices a half-hourly supply, it uses your data to estimate what supplying your particular pattern will cost.

That means a few things are worth understanding before you compare:

• Peak use: how much of your demand falls in the busiest parts of the day on the electricity system
• Baseload: what keeps running overnight and at weekends, such as refrigeration, servers, ventilation or process equipment
• Seasonality: whether demand rises in winter for heating and lighting, or in summer for cooling or a trading season
• Planned changes: new equipment, longer opening hours, on-site generation such as solar, or EV charging that will change the profile during the contract

Sharing accurate data and telling Fidelity Energy about planned changes helps suppliers price what you will actually use, rather than an assumption. Fidelity Energy also offers half-hourly reporting through its Etainabl platform, which some businesses use to understand their profile before a renewal.

Market-wide Half-Hourly Settlement: Elexon's plan

Elexon, which runs electricity settlement under the Balancing and Settlement Code, is moving every electricity meter in Great Britain onto half-hourly settlement. This is called Market-wide Half-Hourly Settlement (MHHS). According to Elexon:

Elexon says settlement currently takes 14 months to complete and that, once half-hourly settlement is fully implemented, it will reduce that to four months.

For buyers, the change means more supplies will be settled on actual half-hourly data rather than assumed profiles, so more businesses may find their usage pattern becomes part of how they are priced. We do not predict what that will do to any particular price. If your site is being migrated, or you are not sure how your supply is settled, ask when you request quotes and we can help you check how each quote treats it.

What to compare on a half-hourly electricity quote

Because half-hourly quotes can be structured differently, comparing them like-for-like takes more care than comparing two simple single-rate quotes. We help you line them up so the differences are clear before you decide.

What data to share for a half-hourly quote

The better the information, the closer the quotes will be to what you actually pay. For each half-hourly site, have ready:

• A recent electricity bill for each supply, showing the supply number (MPAN) and any capacity figure
• Half-hourly consumption data, ideally for the last 12 months: your current supplier or data provider can usually supply it
• Your current contract end date and any notice terms
• Details of planned changes to the site or how it operates during the new contract
• Your business details for the supplier's credit check
• For several sites, a list of sites and their end dates, so contracts can be aligned where it makes sense

Our business energy quotes page covers the general quote checklist, and our business electricity comparison guide covers the points that apply to every electricity contract.

Fixed, flexible and multi-site buying for larger users

Half-hourly sites are often the larger energy users in a business, which widens the buying options. Ofgem describes flexible or structured contracts, where energy is bought in portions over time, as suitable for large energy users. Fidelity Energy offers flexible procurement run by its in-house traders, as well as fixed contracts, and says a flexible contract can be converted to fixed at any point, with the remaining volume bought at that day's market rate. A fixed contract gives budget certainty for the term; flexible buying gives more exposure to market movements. Neither promises a lower price, and the right choice depends on your appetite for risk.

Multi-site businesses often have a mix of half-hourly and smaller supplies with different end dates. Bringing them onto aligned terms can make renewals easier to manage. Our sector guides, such as energy for pubs, restaurants and hotels, cover how this plays out for groups with several premises.

Before you agree a half-hourly contract

Timing matters. Larger contracts can take longer to price and agree, so start comparing well before your switching window closes; business energy contract renewal explains the window. If a fixed term ends without a new agreement, you may move to out-of-contract rates, which Ofgem says are usually more expensive than a fixed-term contract.

There is no business energy cooling off period once you agree, so read the principal terms, including the broker costs, before you accept. Forever Communications works as an agent of Fidelity Energy: Fidelity Energy prices the panel and arranges the contract, and we introduce you and help you understand the options. Fidelity Energy is normally paid commission by the supplier, included in your rates, and Forever Communications receives a share; Fidelity Energy is on the Energy Ombudsman's broker register (see energy broker ombudsman).

Contact us with your bills and half-hourly data, and we can arrange quotes from Fidelity Energy's panel of suppliers.