Energy policy and regulation news February 2026
Stay informed about the latest changes in the non-domestic retail energy market and regulations
As Britain moves towards net zero, the energy market and metering are evolving rapidly. The SSE Energy Solutions regulation team is working hard to represent our partners and customers to Ofgem, the Department for Energy Security and Net Zero (DESNZ) and other regulatory bodies and industry parties.
Here’s a recap of recent energy industry and policy updates.
Electricity
Market-wide Half-Hourly Settlement (MHHS)
At the end of January, Elexon announced that more than one million meters have transferred to half-hourly settlement. Even at this early stage of the transition to MHHS, they’ve seen more actual (rather than estimated) data used in settlement than ever before.
By October 2026, they expect around 80% (approximately 25.9 million) of all meters to be under the new MHHS arrangements.
This autumn Elexon is also launching their Smart Data Repository, publishing aggregated half-hourly data from transitioned meters. Any person or company will be able to view this high-level data and use it in various ways, which include developing new flexibility products and services.
Suppliers could develop more time of use tariffs, empowering consumers to flex their electricity use. This might mean plugging in an electric vehicle and letting smart charging technology choose the best times to top up, or sending power back to the grid and receiving rewards for this, while helping to balance Britain’s electricity demand.
You can find out more on the Elexon website and our MHHS webpage.
Corporate Power Purchase Agreements
DESNZ and the Department for Business and Trade have a call for evidence seeking views on how to develop and improve the Corporate Power Purchase Agreement (CPPA) market in Britain. It aims to identify barriers and opportunities for businesses to secure stable, competitively priced electricity through CPPAs, supporting industrial competitiveness and driving growth.
They’re inviting responses from organisations and individuals with an interest in the CPPA market, particularly:
- companies that use significant amounts of electricity
- electricity generators and developers
- investors and funders of energy infrastructure
- electricity suppliers, traders and intermediaries
This call for evidence closes on 6 March 2026, and you can find out more on the gov.uk website. You can also see details of our CPPA.
Dual Fuel
Smart meter Guaranteed Standards of Performance
Ofgem recognises that some consumers have experienced delays in getting a smart meter, whilst others have had challenges with the meter’s operation. Last year, they consulted on the introduction of four Guaranteed Standards of Performance (GSOP) in smart metering.
They’ve decided to implement GSOPs 1-3, relating to installation appointment availability, failed installation and investigating operational issues. Consumer compensation will start under these new Guaranteed Standards from 23 February 2026. This is set at £40 when a supplier fails to meet any of the new or existing GSOPs.
Ofgem also consulted on GSOP 4, relating to smart meters not operating in smart mode, but haven’t made a final decision yet. They intend to take forward further work on GSOP 4, with a view to implementing it later this year, subject to successfully working through the accountability, technical and regulatory issues raised through the statutory consultation.
You can find out more on the Ofgem website and read our Guaranteed Standards.
