Understanding P272 For Businesses To Save Money On Energy Costs
Posted on Mar 10, 2017
Undertaking research is sound business practice which also extends to finding the best business electricity rates available but some firms may be unaware of what P272 means for them.
Essentially, the P272 is a piece of legislation that is pushing organisations to use half-hourly meters (better known as HH meters) so their usage of energy can be better monitored and charged for.
It’s also important for those firms who are looking to find a new energy supplier since if they have a P272 meter than the information is an effective way of accessing lower bills.
That’s because a potential new supplier can see immediately when and where the firm is using energy and tailor their offering to meet this – there might also be, for instance, some encouragement for the firm to move to off-peak use for lower rates.
Indeed, while many organisations may believe that they are on a good deal, unless they check the market regularly, how will they know?
It is worth highlighting research from the Competition and Markets Authority which reveals that around 40% of firms have never switched their energy supplier.
Firms are probably paying more for their energy
The result of non-action is that a large number of firms are probably paying more for their energy needs than they should be doing.
The only way to find the cheapest electricity rates is for an organisation to compare the entire market for all business electricity suppliers.
On top of this, they will also need to consider how much electricity they are using for their business needs.
There are ways and means of searching the market to find a better supplier and organisations of all shapes and sizes could save substantial amounts of money.
One of the best ways of finding what the market rate could be is to check a business comparison website that looks at a range of electricity suppliers delivering to businesses.
Also, for those firms who have multisite businesses it also possible to have an account that delivers just one energy bill to their head office rather than having to process several invoices every month.
Compare the business’s energy needs to find the biggest savings
The comparison website will then compare the business’s energy needs to find the biggest savings available and then highlight which will be the cheaper business electricity supplier.
With the prospect of business energy prices increasing in the near future, it is also worthwhile considering whether the organisation should lock into fixed energy rates for one, two or three years.
There will, undoubtedly, be a fair number of businesses wondering why they should switch their energy supplier at all and the new P272 HH meters will offer data that will show where savings and efficiencies can be made.
Also, the reason for switching energy is a simple one, because it makes sound business sense to do so.
Data from the HH meter thanks to the P272 rules
Not only will the business save money by utilising the data from their HH meter thanks to the P272 rules, the savings will range from several hundred to thousands of pounds every year and they may also enjoy better customer service and other services as well.
For instance, some business energy suppliers will offer to undertake an audit of the firm’s energy usage to see where savings can be made so the firm could reduce their overheads even further.
The business energy market is a competitive one following the deregulation of the industry and businesses can choose an energy supplier of their choice.
Some organisations may also be concerned that their energy supply will be interrupted as they switch suppliers but these worries are unfounded.
Also, there will be a large number of firms who have their energy supplied by one of the ‘big six’ business energy suppliers and they may be wondering why they should move from an organisation that meets their needs.
The introduction of half hourly meters through the P272 legislation
While there’s no doubt that the big six firms will be providing most of the energy needs for the UK’s business sector, this dominance also leads to a range of high energy bills through uncompetitive tariffs – hence the introduction of half hourly meters through the P272 legislation.
The government and the energy regulator Ofgem are keen to introduce competition that will help to see lower prices being introduced and improve customer service levels.
To help boost the level of competition within the industry, businesses are being encouraged to switch their energy supplier on a regular basis.
The other issue is that many businesses are not aware of just how easy it is to switch business energy supplier and the process is smooth and trouble-free.
The end result will see the firm enjoying lower overheads which will mean a boost to their profitability.
In addition to using business comparison websites, a firm can also utilise the expertise of business energy brokers who understand how the market works and will have access to the latest deals and tariffs that will better meet a business’ need.
For many firms, an ideal solution is to contact the experts at D-Energi who will be able to explain more about the P272 legislation and source a cheaper energy deal with just a few details from the firm to help them enjoy better business electricity and gas rates.