Time-of-Use Tariffs Will Reshape Energy Bills in 2026+

Time-of-use tariffs are about to change the way UK organisations pay for electricity. For decades, bills were based on flat rates. From 2026, however, time-of-use tariffs will reshape energy bills by charging more at peak times and less when demand is low.

For decades, most UK organisations have paid for electricity in a simple way: a flat or variable rate applied across the day. That model is now changing.

With the rollout of Market-wide Half-Hourly Settlement (MHHS), bills will soon depend on when electricity is used, not only how much. By 2026, most organisations will be moved onto this system.

This shift brings both challenges and opportunities. However, organisations who adapt early could benefit, while those who don’t may face higher costs.

Under MHHS, half-hourly settlement will replace today’s flat rates. As a result:

✅ Electricity is often cheaper off-peak overnight, at weekends, or when renewable generation is high.

✅ Peak-time usage will cost more, especially during mornings, evenings, and grid stress events.

✅ Organisations will also face greater exposure to volatility, with costs harder to predict.

Therefore, many organisations will find this system very different to the stable tariffs they have relied on.

Some organisations will adapt quickly—and gain an advantage.

• For example, schools can store solar energy in batteries and use it later, avoiding peak costs.

• In addition, SMEs may shift non-essential loads, such as refrigeration or charging, into cheaper periods.

• Meanwhile, manufacturers can take part in demand-side response, earning revenue while cutting costs.

By contrast, organisations tied to peak usage, or those delaying investment, may find their bills rising sharply.

Preparation is key. To begin with, organisations should take steps today that reduce exposure tomorrow:

1. Energy Audits – Identify when and where energy is used most.

2. Smart Controls – Automate load shifting into lower-cost periods.

3. On-Site Generation – Add solar, batteries, or CHP to reduce reliance on the grid.

4. Procurement Strategy – Build contracts designed for time-of-use tariffs rather than outdated flat rates.

In addition, trialling changes early provides time to test what works and make improvements before the new rules arrive.

Time-of-use tariffs are not just another line on the bill. They represent a step towards a smarter, more flexible energy system.

At The National Energy Hub, we work with schools, SMEs, and manufacturers to design strategies that go beyond chasing the cheapest rate. By combining procurement with on-site generation and flexibility, we help clients create resilience, reduce risk, and deliver long-term value.

📌 The real question isn’t whether time-of-use tariffs will reshape bills—it’s whether your organisation is ready to adapt.

Read related posts:

• Energy Strategy 2025 Guide →

• Energy Resilience Strategy →