Will P272 affect your business?
Below is a guide on what you need to know about P272 – Balancing & Settlement Code.
The changes can be a great opportunity to improve how and when you use energy.
What is P272?
P272 is a mandatory OFGEM regulation which requires that all Maximum Demand (MD) meters that have an AMR (Automatic Meter Reading) meter installed, will need to change to a half hourly (HH) meter.
Will P272 affect me?
Yes, if you have a maximum demand supply (Profile classes 05-08) that has an AMR fitted.
To find out whether you have one of these meters, look for the image below on your bill – it will either show between 05 and 08 in the box highlighted:
Your supplier has until April 2017 to ensure you have a half hourly meter installed and a half hourly contract. However, where contracts are new, this requirement must be met within 45 days of renewal or acquisition.
Do I need to do anything now?
If you don’t do anything, your supplier will arrange a default Meter Operator Agreement (MOP) and HH contract for you.
However, these won’t necessarily be competitive. As the market is now open and highly competitive, acting early can result in significant savings of around 50% of this cost.
This affects many of our existing and potential clients, so we are pro-actively advising those who qualify. If you would like information please get in touch with us on 01752 262626.
How will P272 affect my costs?
While there are extra costs associated with this change, “securing a commercially savvy contract could save between £500 to £600 per meter annually” (Energy Live News).
P272 will ensure your energy usage is recorded every 30 minutes, which will allow your supplier to provide you with an actual consumption figure. This means that they will bill you based on your actual usage.
How will P272 affect my bills?
The cost of service will be broken down within your bills.
Will I need to replace my meter for P272?
It is unlikely that your meter will need to be replaced if your AMR can be configured remotely, as it will already be able to take the Half Hourly reading. Some meters, however, may need to be physically replaced.
Why is it happening?
The proposer of P272 believes that the use of Non Half Hourly (NHH) data is not as accurate and masks individual customer behaviour. Providing more accurate data helps the industry wide forecast that is pre-determined in order to allocate electricity volumes to each supplier.
How IU ENERGY can help
At IU ENERGY we are fully aware of the many unanswered questions that exist for our clients with regards to P272 – we’re on hand to help you understand and prepare for P272.
These proposed changes don’t have to be a negative, see them as a great opportunity to improve not only when, but how you use your energy. For further information, visit www.iuenergy.co.uk, call 01752 262626 or email firstname.lastname@example.org