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Why Understanding What P272 Means is Important
While it may sound like an obscure piece of business regulation, understanding what P272 means is important for all organisations.
That’s because it is a regulation from the energy industry watchdog OFGEM which, in October 2014, stipulated that all organisations with non-half-hourly profile class electricity meters would be migrated to the energy market’s half hourly meters.
This means that the difference between the two environments will now be leveled out and, more importantly, will see firms and organisations being able to access cheaper electricity bills since their energy suppliers will be able to define more clearly not only how much energy an organisation is using but also when they are using it.
The extra information means the energy supplier could move their customers to lower tariffs so they save money.
In addition, they may even encourage an organisation to use electricity when it’s cheaper in off-peak periods to help with energy demand and the firm will then enjoy lower bills as a result.
All firms that had a non-half-hour electricity meter
Essentially, all firms that had a non-half-hourly electricity meters, known as NHH, will have gone through, or will need to go through, the switch over to a half hourly settlement.
The word settlement is used to determine how much electricity an organisation has used over a given period.
For those organisations with a meter in the ‘Profile Class 05-08’ – the definition of the meter is on the organisation’s electricity bill and meter itself – will automatically send the actual energy usage for the previous half-hour to the energy supplier.
One reason for this is that Ofgem says that organisations will be able to move their electricity demand away from the dearer peak periods and onto the cheaper periods or find a supplier who better meets their needs.
This not only helps the energy market but it also helps the National Grid forecast more efficiently when demand for energy will increase.
Switchover process for the implementation of P272
The switchover process for the implementation of P272 began in November 2015 so that all of the relevant metering systems in the country will have switched across to the half hourly market by April this year.
Obviously, this timescale means that some business sites had to implement the meter switchover much earlier than others did but everyone will need to have the new meters in place by the April deadline.
For those firms or organisations that have not been contacted or are unsure whether they are on the correct metering system, then they need to act promptly.
The best way of doing this is to contact the experts at D-Energi and they will be able to help answer any questions.
More importantly, should the organisation need to switch over then this can be arranged quickly and efficiently by the helpful advisers at D-Energi.
One of the main reasons given for organisations not switching energy suppliers is they claim not to have the time to fully research the market for a new supplier – this is where experts in the market come into their own and help firms save time doing so.
Electricity meter in the ‘Profile Class 05 to 08’
Indeed, it’s crucial that all businesses now have their electricity meter in the ‘Profile Class 05 to 08’ range so they have switched to a half hourly billing basis.
If not, their energy supplier must install a new meter or help with the switch-over by the deadline.
The result is that businesses will get more accurate electricity bills which means they should see a fall in their overheads but other organisations may see a rise in their bills.
The P272 also encourages firms to introduce energy saving ideas such as switching off electric lights in rooms that are not being occupied and other efficiencies.
The team at D-Energi can help
Again, the team at D-Energi can help with advice on this subject with ideas that work and will save the company money.
By shopping around, the organisation will be able to gain a better energy deal because a potential new supplier will be able to see how much the organisation is using in energy in clear detail and, more importantly, when they are using it.
It’s important to appreciate that the new changes only apply to organisations and not to domestic consumers and every business using electricity will be affected.
Under the new rules, it simply is not possible for any organisation to remain on their non-half hourly settlement and they will need an advanced meter installed.
Another reason for OFGEM to arrange for the P272 switch to half hourly metering is for businesses to appreciate how much they are spending on energy and look to switch suppliers so the idea is to create competition within the industry.
With greater competition for company, business means organisations can access lower tariffs more easily and reduce their overheads as a result.
For more help and information about understanding P272 and how an organisation can switch energy suppliers or find a better tariff, then contact the experts at D-Energi.