P272 Ofgem legislation
P272 is regarded as one of the biggest changes in the business electricity market since deregulation of the energy sector. The legislation provides a more definite step towards a smarter, more energy efficient economy. At D-ENERGi our team of experts can advise you on how to manage this change and realise its full potential benefits. Below are some facts on the P272 Ofgem Legislation, we have put together hopefully jargon free. If you unsure on how this affects your business please do not hesitate to contact us for free on 0800 781 7626, we will be delighted to help you further.
What is P272? – The Facts
P272 is a new mandatory regulation which affects the way all electricity suppliers settle electricity consumption for businesses within a specified energy use. This will result in sites being migrated from non half hourly meters (NHH) to half hourly meters (HH), and enable suppliers to produce more accurate bills.
Is My Business Affected?
To find out if your business is affected, you will need to locate your supply number. The supply number comes in a format as displayed below – this is a legal requirement and will be on your electric bills irrelevant which supplier you are with.
Highlighted by the gold arrow the first two top numbers of your supply number are shown, which are known as profile class within the industry. If your supply number starts with the following numbers, then you are affected by the legislation.
Profile classes affected by P272
05 06 07 08
These profiles are also known as Maximum Demand Meters within the energy industry
Why is P272 Happening?
The amount of energy purchased from the generators needs to be monitored by the Suppliers – P272 enables Suppliers to not only balance the energy, but it will also help you and your business manage and use your energy smartly. It gives you the opportunity to see at which times of the day you consume the most energy and helps you receive a more accurate reading via the half hourly meter consumption – a more accurate settlement which could lead to better tariff rates. Introducing the new regulations will provide consumers with more understanding of electricity use, resulting in networks ensuring they are sufficiently developed and maintained.
When Will This Take Place?
The regulations were enforced on 5th November 2015 – the deadline for all meters to be settled to half hourly will be 1st April 2017.
How Many Sites are Affected?
Profiles which are meters in classes 05-08 is mandatory regulatory change for electricity (often referred to as Maximum Demand Meters or Non Half Hourly Meters) that affects over 167,000 UK businesses. From 1st April 2017, these meters will be billed in a new way. Therefore, if your supply number starts with 05-08 then you need to take action towards P272.
Will the Charging Structure Change?
By migrating from a Non Half Hourly Meter (NHH) to Half Hourly Meter (HHM) there are extra charges and bills become more complex than businesses are used to with their current NHH 05-8 profile set up. There will be charges for Tuos and Duos, Available Capacity, Data Collection and and aggregation (DC/DA) as well as Meter Operator Agreement (MOP) charges. These are costs in addition to the unit rates so could increase the costs of current maximum demand meters significantly. To give you an idea, Metering (MOP) charges can be £300 upwards per meter per year, and Data collection and aggregation (DC/DA) charges can be similar.
Will the New Regulations Mean I will need to Replace my Meter?
The majority of customers who are effected by P272 will not need to have a new meter installed. Most meters in profile classes 05-08 are capable of taking Half Hourly readings. If your currently have an Automated Meter Read type of meter (AMR) Most AMR’s will have the capability to be configured remotely to Half Hourly Readings.
Why is P272 Beneficial for Your Business?
- It allows you to receive a more accurate billing
- It offers you the ability to avoid peak times of electricity use
- It gives you and insight on your energy usage
- It gives you the opportunity for improvement and efficiency
Where Can I Find Out More Information?
It is important to remember that this P272 OFGEM regulation is affecting ALL maximum demand meters and ALL electricity suppliers equally. If you’re being advised P272 does not affect your business, please let us double check this for you.
If you’re still unsure about P272 or have any further questions, please do not hesitate to call and speak to our energy experts on 0800 781 7626 and one of our account managers will be happy to answer any queries you may have.
Call for free 0800 781 7626 to speak to one of our friendly team and help us reduce your business energy costs!