Ofgem published a call for input on 25 March 2026 seeking views on how to adapt the wholesale allowance of the energy price cap to accommodate Market Wide Half-Hourly Settlement (MHHS)1. The regulator states that MHHS will result in changes in how suppliers are settled when purchasing electricity to match their customers' demand1. The call for input sets out Ofgem's initial thinking and asks for views on how the cap may need to develop1.
"We are seeking views on how to adapt the wholesale allowance of the energy price cap to accommodate Market Wide Half-Hourly Settlement (MHHS)."
The document sets out three areas Ofgem says it holds views on: setting an electricity wholesale allowance that allows the cap to track and reflect the efficient costs of serving cap customers over time; whether and how differences in costs to serve customers across customer groups and suppliers are accounted for when setting the cap; and developing the cap for customers who want to change how and when they use electricity, for example paying by time of use where the price varies depending on when electricity is used1.
To adapt the cap, Ofgem says it considers it needs to update how the cap level is set for single-rate customers, 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; and consider whether further risk mitigations are required to address differences in costs to serve suppliers' customer bases1.
Ofgem lists the groups it would like views from as energy suppliers, energy industry bodies, network companies, consumer groups, charities and consumers1. Responses should be submitted by 5 May 2026 by emailing priceprotectionpolicy@ofgem.gov.uk1. The page records a closed date of 6 May 2026 and a status of closed, and lists the topic as energy pricing rules with the subtopic energy price cap1.
| Item | Detail |
|---|---|
| Published | 25 March 2026 |
| Response deadline | 5 May 2026 |
| Closed date | 6 May 2026 |
| Topic | Energy pricing rules |
| Subtopic | Energy price cap |
Why it matters for households
The price cap sets the default tariff rate for households that have not switched, so any change to its wholesale allowance feeds directly into what a home pays per unit of electricity. The call for input concerns how the cap is set, not the level itself, and no new cap level is announced in it1.
The proposal to design at least one time of use variant is the part with the clearest practical edge for a household's energy independence. A time of use cap would apply to customers who pay different prices depending on when they use electricity, a group that includes homes able to shift demand, such as those with electric vehicles, heat pumps or storage. Ofgem also proposes updating how the cap level is set for single-rate customers, who pay one price regardless of timing1. Whether a time of use variant would sit alongside or replace the single-rate cap is not stated in the call for input1.
The reference to differences in costs to serve across customer groups and suppliers touches on whether some households could face different cap treatment from others. Ofgem frames this as a question of whether further risk mitigations are required, and does not set out a position on the answer1.
What happens next
The response window runs to 5 May 2026, with the page recording a closed date of 6 May 20261. Ofgem has not reported what will follow the call for input, whether a consultation or decision, and no timetable beyond the response deadline appears in the document1. The half-hourly settlement programme itself is not given a completion date in this call for input1.