The UK’s energy market is going flex in 2026, and David Sheldrake shares why the world needs to pay attention
The UK’s energy landscape is undergoing arguably the most significant transformation since market deregulation. After years of segmentation, it is entering an era defined by collaboration, flexibility, and the emergence of a fully interconnected ecosystem. One that links suppliers, technology partners, and consumers. In the UK, central to this change is the implementation of Market-wide Half-Hourly Settlement (MHHS) and the resulted acceleration of flexible tariffs which are set to redefine how energy is purchased, consumed, and valued.
MHHS is a major UK-specific regulatory program that will bill customers for their energy usage based on accurate half-hourly meter readings from smart meters, as opposed to calculating bills with estimated usage figures. This shift isn’t simply about new tariffs or new technologies, though. It is something that will help forge a more efficient energy future by enabling each participant in the value chain − supplier, partner, and consumer − to play an active role in balancing a currently overwhelmed system.
A collaborative model
For decades, the industry operated on a one-way model. Energy companies generated power, networks distributed it, and consumers used it. Many of them unaware of how, when, or at what cost. However, as both supply and demand become increasingly dynamic, that traditional model is no longer sustainable.
The energy system of the future must be interactive, intelligent, and balanced in real time. That requires a new, collaborative ecosystem. Suppliers use consumption data to procure energy more efficiently. Technology partners enable homes and businesses to monitor and automate their energy usage. And consumers respond to price signals, generate their own power, and store energy during cheaper periods.
This collaborative model is, I argue, the only way to achieve a grid for the future that is greener, more resilient, and capable of supporting the accelerating electrification of heating, transport, and industry.
Flexibility benefits
At the heart of this transformation are flex deals that offer consumers different prices depending on when they use energy. Cheaper power during low-demand periods will encourage a shift in consumption to moments when the grid is under less strain.
Ofgem, the independent regulatory authority for gas and electricity markets in Great Britain, wants as many as possible to transition to these flexible arrangements – and for good reason. Not only do they help balance the grid, but they also allow suppliers to purchase energy in blocks matched to actual patterns of demand.
Whilst take up of flex deals has been modest in the past, MHHS will help by allowing accurate forecasts based on actual half-hourly usage, not estimated profiles. This means suppliers can hedge and price more accurately. It also means consumers can gain insight into when they use the most energy and change their habits accordingly. Many will turn to technologies that allow them to offset consumption during expensive periods. Home renewable solutions such as solar panels, small-scale wind, and particularly home batteries will all likely see a surge in adoption.
For the grid, this promises stability in the face of rising demand from electric vehicles (EVs) and the gigantic data centers required for artificial intelligence calculations.
Suppliers’ future success will hinge on enabling customers to make the most of flex deals and renewable technologies. They will need to provide clear, transparent tariff structures that reward off-peak behaviour; then provide the requisite tools and apps to consumers that visualise usage in real time; and finally, provide financial incentives to those who share capacity back to the grid.
Technology partners will become increasingly essential. Their innovations will make it easier for consumers to automate energy-saving behaviour. Whether that be charging EVs overnight, storing energy in batteries for later use, or shifting appliance usage to off-peak windows.
Reducing pressure on the grid
One of the most compelling benefits of widespread flex deal adoption will be its impact on grid stability and affordability. It will help reduce pressure on the grid during peak periods, which will lead to fewer instances of emergency generation, lower long-term infrastructure investment needs, and better integration of other energy sources. At the same time, flex deals will lower bills due to greater off-peak usage, plus provide greater control and transparency over consumption. They will also provide opportunities to consumers to self-generate and store energy.
This ecosystem approach will create a more resilient grid without requiring massive upfront infrastructure investment. But for it to be a success, we all need to get involved. The more that participate in the energy ecosystem, the cheaper and greener the whole system becomes.
Cultural shift
As MHHS goes live and flex deals accelerate, 2026 is set to become the year the energy market finally transitions from passive consumption to intelligent, dynamic energy engagement. Suppliers, partners, and consumers will no longer operate in isolation, but instead form a shared ecosystem where each contributes to grid resilience and carbon reduction.
This is not just a technological shift; it is a cultural one. Consumers will expect transparency. Suppliers will compete on intelligence, not just price. Technology providers will innovate at the intersection of data, automation, and home energy. The result will be a greener, more efficient, and more collaborative energy future for all.
David Sheldrake
David Sheldrake is the Chief Revenue Officer at POWWR, having joined the business in 2019 to head up its Sales360 team, working with energy suppliers to increase go-live rates and streamline sales. In January 2026, David took on his current role and is now responsible for managing and maximising all revenue-generating streams, including sales, marketing, customer success, and revenue operations.