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What is P272?

What is P272?

Changes known as P272 are on the way that will implement the mandatory use of Half-Hourly (HH) data to ensure more accurate recording of energy use amongst business consumers. Utility Assist can help you understand and mitigate the impact.

What is P272?

P272 is the name of a piece of OFGEM regulation. P272 requires that all maximum demand supplies (Profile class 05-08) to be settled on actual Half Hourly (HH) consumption data in the same way that Half Hourly meters (profile 00) are currently settled. Currently settlement* occurs using an industry wide forecast that is pre-determined in order to allocate electricity volumes to each supplier.

The P272 change involves moving supplies using the Maximum Demand (MD) metering system to an Automated Meter Reading (AMR).

Why is P272 happening?

P272 means that the industry should use half hourly data for settlement in order to improve accuracy. It will also help distributors better understand electricity usage, so that they can make sure networks are maintained appropriately.

What does P272 mean for my organisation?

The introduction of P272 means that if your organisation has any Non Half Hourly electricity meters in Profile Class 05-08, these will now need to go through a Change of Measurement Class (CoMC) to Half Hourly Settlement.

What are the benefits of HH Settlement?

For half-hourly supplies, the meters record and transmit the consumption reading every half an hour, rather than waiting for meter readings. This means suppliers can quickly settle their consumption based upon actual usage, and be able to offer pricing and products that reflect half-hourly costs and consumption more closely.

Will P272 affect my bills?

Unfortunately, moving to HH Settlement means new charges will appear on your bill and could involve unavoidable cost increases. However, some may see a decrease in their bills, depending on patterns of usage.

Does P272 affect me?

Up to 160,000 meters in the UK are affected. P272 affect any business which has a maximum demand supply (Profile classes 05-08 inclusive) that has an AMR fitted. In order to check if you have one of the affected profile classes, check your bill and find your MPAN or supply number. If the first two numbers in this box are 05, 06, 07 or 08 then your meter is likely to be affected.

Will P272 affect my costs?

As P272 will measure energy usage based on half hourly readings, this will allow suppliers to price your contract based on your actual consumption pattern and also provide you with a bill that better reflects the actual cost of your energy. Half hourly data allows a supplier to use historical data, meaning that any customers who reduce energy consumption at peak times (for example early in the morning and late afternoon, particularly in winter) will see a reduction in their unit rate when they come to negotiate their next contract. There may be additional cost involved relating to the appointment of separate Meter Operators to manage the ongoing meter operation and data collection. Currently such costs are incorporated within the unit and standing charge rates.

When is P272 happening?

The current date for completion of the changes is April 2017.

Will I will need to have my meter replaced?

The majority of meters affected by P272 will not need a new meter to be installed. If you have an automatic meter reading meter(AMR) and it is able to be configured remotely the meter will already be capable of taking the HH readings. If this is the case it will be unlikely that you will need to have your meter replaced.

Does P272 affect my bills?

There will be differences on your energy bills due to the usage of Half Hourly data, there will be some new lines on each bill as the cost of service will be shown as a breakdown. As soon as we have any more information we will be updating this article.

Where can I find out more information?

If you still have any questions or are unsure if you will be affected by P272 please contact your account manager at Utility Assist. Alternatively there is also information available from OFGEM.

 

*Settlement refers to how suppliers match, and pay for the energy consumed by customers, to the energy purchased on their behalf.

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