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2 Feb

Why the P272 Legislation from Ofgem Benefits All Businesses


It may not have the sexiest title for legislation ever but the P272 regulations from Ofgem will help all firms and organisations in the UK access much cheaper business energy tariffs.

That is undoubtedly good news for all firms since they will effectively keep on top of rising energy costs and ensure that their overheads are controlled as well – which means they boost their bottom line too.

Indeed, it’s important that all businesses appreciate what P272 means since all firms must, by April 1 2017, have their energy use recorded every 30 minutes if their meter is in profile classes 5 to 8.

The changes are down to Ofgem modifying the balancing and settlement code which is known as P272 and though this will not mean much to firms, it should lead to them enjoying lower energy bills as a result.

Business energy supply

The business’s energy supplier should have contacted them to discuss whether they have a suitable meter or whether it will be replaced and they must then have this done. The supplier is responsible for carrying this out.

The move to automatic meter reading means there will be no need for somebody to turn up on site to check the meter and it also gives energy suppliers a better idea of a firm’s energy usage.

In turn, this means they can tailor their offering to their customers and offer lower prices.

This obviously means that businesses will no longer have estimated bills and, more importantly, they are also unlikely to receive an unexpectedly large bill when they are unprepared for this.

Enables a business to reduce energy costs

However, one of the big reasons for the industry to move to half hour billing is that it enables a business to reduce energy costs because they can access cheaper and better deals from differing energy suppliers.

Also, businesses are usually tied into a fixed business energy contract so they are unable to switch suppliers until the contract is nearly at an end – and they can only switch if there is not an outstanding debt with the current supplier.

There will undoubtedly be businesses who are confused about the P272 legislation and the need for them to switch to smart meters but there is help and advice available from the experts at D-Energi who will be able to explain more about the need for the new meters and also find the business a cheaper business energy supplier as well.

Require Assistance?

We take pride in our commitment to providing the most competitive rates for business electricity and gas. If you are seeking guidance on how to effectively reduce your business electricity and gas costs, or require assistance with a business energy switch, please call our dedicated Customer Services team at 0800 781 7626. We assure you that calls will be answered promptly within five rings or less!

Or you can enter your queries by clicking the button located at the lower right corner during business hours.

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