The processes around P272 will mean energy usage is measured based on half-hourly readings, this will allow suppliers to price contracts based on actual consumption patterns and will therefore provide your clients with an invoice that better reflects the actual cost of your energy.
The accurate data provided by advanced meters will also allow customers who consume less energy at peak times (for example early mornings and late afternoons) to negotiate a reduced unit rate when their contract next comes up for renewal
This is where Business Energy Store can assist you as we are specialists in Half Hourly meter contract renewals, so we can negotiate directly with all of the UK’s 22 suppliers to get you the best deals on offer. Use the Request a Quote to ask us for a no obligation renewal rate.
What is P272? Gas & Electricity Procurement
P272 is a mandatory industry-wide change instigated by OFGEM for the half-hourly (HH) settlement of profile class 5-8 meters that have capable metering in place, i.e. where AMR (Automatic Meter Reading) meters are fitted. Settlement is the process by which electricity volumes are allocated to suppliers.
This change is to be implemented by 1st April 2017. AMR meters are able to record consumption in each half-hour giving more precise data on customers’ usage. The change requires that suppliers use this data to settle profile classes 5-8 rather than a pre-determined industry-wide forecast. This data can also be used for billing which means customers’ invoices will better reflect the cost of their energy.
This obligatory change is industry-wide and will be implemented by all suppliers. We have the interest of our customers and consultants at heart and were among those suppliers lobbying for the deadline for P272 to be pushed back until 1st April 2017 to avoid unnecessary inconvenience to customers who may potentially require mid-contract changes.
P272 Customer Q&A
We have put together some Q&A’s which will guide you thought the process, please contact us if you need any further information
For more information, see Ofgem’s official factsheet.
P272 is a mandatory industry change that affects the way in which your energy consumption is settled. P272 regulation stipulates that AMR (Automatic Meter Reading) meters with profile classes 5-8 will be settled on actual half-hourly (HH) consumption rather than a pre-determined industry-wide forecast from April 2017. Settlement is the process by which electricity volumes are allocated to suppliers. Customers whose meters are set up as CT will be subject to a Capacity Market charge, and customers whose meters are set up as WC will not receive a Capacity Market charge.
If you have an AMR meter and your profile class is 5, 6, 7 or 8 then you will be affected. Profile classes 3 and 4 are not affected by P272, even if they have an AMR fitted. Your profile class can be found on your bill and makes up part of your supply number which is shown as follows:
In the example shown, the profile class is 5 and is highlighted. Profile classes 6, 7 and 8 would appear as, 06, 07 and 08 respectively.
Yes. P272 will make your metering more accurate. Depending on the existing pattern of usage, some customers will see a fall in costs, while others will see a rise. For example, if you use less energy at expensive times, like the 5pm winter demand peak, you should save money.
You will need to pay for a MOP and DC to maintain and analyse the meter data. If you have arranged a contract directly with your preferred MOP and DC, these providers will invoice you directly (i.e. it won’t show on your energy bill).
From 5 November 2015, those businesses in profile classes 05-08 who already have accredited, automated half-hourly meters installed on site will be priced and settled half hourly. For those who don’t, suppliers have until April 2017 to ensure affected sites have a half hourly meter and associated meter operation and data collection contracts.
Depending on your compliance date, all sites with a meter profile of 05, 06, 07 or 08 must:
a) Upgrade to half-hourly metering. This means your meter will report energy usage data more regularly and accurately to your energy supplier. All pre-existing contracts for 05-08 business meters must be cancelled and replaced as each meter is upgraded. Your supplier will upgrade your meter for you.
b) Appoint a Meter Operator (MOP) to maintain the meter, and a Data Collector (DC) to collect and process the consumption data going through the meter. There is a cost associated with this and it is the customer’s responsibility to appoint a MOP and DC that offers the best value for them.
Most businesses affected by P272 already have an Automated Meter Read (AMR) meter. AMRs allow energy suppliers to collect your energy data remotely. Your supplier will re-programme the meter to supply data every half hour. On some occasions if the meter cannot be reprogrammed an exchange will be required.
ELEXON, the body responsible for the delivery of P272, has advised that if a profile class 5-8 supply has an advanced meter fitted, then it must be migrated to half hourly settlement in line with the P272 requirements, and cannot be moved to Profile Classes 3-4. More information can be found on the ELEXON website here or by emailing them at P272 Implementation.
Yes, there are:
Around 160,000 sites in profile classes 05-08 are affected by the changes. P272 will give all of them more accurate billing and energy consumption data. Current energy costs are based on how much you use but not when you use it – P272 changes that. The half hourly data will be used to calculate to the penny how much it costs to supply you with the energy you use at the time you use it. The settlement cost suppliers pay will then be used to calculate your individual charges.
The real added bonus is that P272 provides you not only with accurate billing, but also with a huge amount of insight into how, when and where you use energy – every half an hour of every day. This data, if used properly, can really help you to drive efficiencies on site. If you can’t avoid using energy, at least think about when you are using energy. Don’t consume when you don’t need to and certainly not at peak times if you can avoid it.
Shopping around for the MOP, DC required by P272 can save significant amounts a year for every site that meets the criteria.
Across all businesses it is estimated that there is a potential saving of £116 million.
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