8 Positives about P272 and Your Business Electricity Bill
P272 is the industry name of the compulsory regulatory change for electricity meters in classes 05-08 (often called Max Demand Meters) and as of 5th November 2015 energy suppliers renewing a contract or acquiring a new contract for an 05-08 meter, have 45 days to move it onto Half Hourly (HH) reads. This affects over 150,000 UK businesses and from 1 April 2017, these meters will be billed in a new way. That means we're just over 6 months away from a big change within the energy industry but information available in the market place suggests that many of the affected businesses are yet to be transferred across to mandatory Half Hourly electricity billing and settlement.
Will my meter need to be changed?
The majority of 05-08 meters are an AMR (Automatic Meter Reading) meter, or in the process of being converted to one, as a result of previous industry regulatory requirements. This means that, in the majority of cases, the meter won't need any change to be configured for Half Hourly electricity billing. In the rare occurrences where the AMR meter is not configured for HH reads, the electricity supplier should be able to modify this remotely without any change to the meter.
How will your bill and billing change?
At the moment, your energy supplier bills you based on a single read. This gives the electricity supplier your annual consumption which is then subject to an industry-agreed calculation based on your meter class. This then gives your supplier a picture of when they think you actually use electricity (all be it a very rough one as every industry is different and every business is unique). Your electricity bill is therefore very simple but possibly isn't overly reflective or accurate regarding when you do and do not really consume electricity.
Following the enforced change and going forward, an 05-08 meter will be automatically read every half hour, over the full year, giving your supplier your actual consumption from an enormous 17,520 reads! This of course is all involuntary and your bill will become far more accurate. However, it will also likely be a lot more complicated and new charges may also appear from the supplier.
It is also possible that you could be charged more if you use electricity during peak times; Half Hourly electricity settlement means exposure to higher distribution and transmission network charges during peak demand periods. The situation is complicated as energy suppliers are approaching the changeover in different ways and the peak times vary depending upon the Distribution Network provider you are linked to (just chat to us and we'll guide you on the right supplier for your business plus information on charges for meter operators, data collectors and data aggregators (MOP, DC and DA respectively)).
The positive part
Automated Meter Readings (AMRs) will give the level of energy data needed to really understand consumption across your business' portfolio. It will also allow you to spot opportunities for energy efficiency. But there will be additional charges to contend with so we've compiled a small list to help you take the positives as there are ways to mitigate these costs:
1. Through our supply chain, we can generate MOP, DC and DA contracts on request and we don't charge; it's simply value added.
2. We make sure the contract offer matches the invoiced tariff and that capacity charges are set correctly to avoid clients paying over the odds.
3. We can help you find ways to reduce consumption during the more expensive periods to avoid certain charges (through Half Hourly data, it's possible to identify areas or times where consumption is higher than usual/ necessary).
4. Our dedicated energy and P272 experts will assess your current situation, de-mystify the change, help you manage the transition and ensure your new bill is correct.
5. We'll help you to understand and take advantage of the opportunities P272 has created.
6. We'll give you the ability to control how and when you use your electricity to be more efficient, reduce consumption at peak times, lower your costs and find the most suitable deal when your contract is due for renewal.
7. We can help you to take control of your electricity data, consumption data and what your supplier is basing your bill on.
8. We'll give you the ability to still make savings and take control.
"Following the enforced change and going forward, an 05-08 meter will be automatically read every half hour, over the full year, giving your supplier your actual consumption from an enormous 17,520 reads! This of course is all involuntary and your bill will become far more accurate. However, it will also likely be a lot more complicated and new charges may also appear from the supplier."