TEAM Explains What the P272 Regulation Means to Businesses

Milton Keynes, United Kingdom, July 22, 2016 --(PR.com)-- All electricity suppliers have a P272 regulatory obligation directed by Ofgem to change the way customers with Profile Classes of 05 to 08 meters are billed. These changes must be made by April 2017.

What is the P272 Regulation?

In summary, P272 requires all Non-Half Hourly (NHH) Profile Class 05-08 meters to go through a Change of Measurement Class (CoMC) to Half Hourly (HH) Settlement. In the majority of cases this upgrade can be done remotely and a change of meter should not be needed.

The changes will ensure that costs get reconciled accurately between customers and suppliers and between suppliers and generators – this process is known as the "settlement."

The meter Profile Class can be found from the MPAN number on an organisations electricity bill. It's the first two digits after the "S" in the top row of the boxes.

Around 160,000 sites in profile classes 05-08 are affected by the changes. P272 will provide all of them with more accurate billing and energy consumption data. Current energy costs are based on the usage but not the time it's used – P272 aims to change that. The HH data will be used to calculate to the penny how much it costs to supply the organisation with the energy usage at the time used.

The cost of using electricity at certain times of day (typically between 4pm and 7pm on weekdays), is likely to be much higher while costs at other times may be slightly lower. This presents some opportunities for businesses to assess their energy consumption profiles to see whether demand can be moved from peak periods to cheaper times of the day.

What will the P272 changes mean?

Rather than paying for NHH standard profile rates, HH system charges are usually applied according to the time of day that energy is used. For some businesses, it may mean that energy costs are reduced. But for others with high consumption at the most expensive times of day, energy costs could rise substantially.

Moving to the HH market means your business will need to appoint a Meter Operator (MOP) and Data Collector (DC) to maintain and read the meter. If the business doesn't select a preferred provider in time, the supplier will appoint its default agents but they could prove to be more expensive.

Moving to HH Settlement means that Network Charges i.e. Distribution Use of System (DUoS) and Transmission Use of System (TNUoS), could appear on bills, allowing greater transparency in the validation process.

The real added bonus is that P272 provides... not only with accurate billing, but also with a huge amount of insight into how, when and where the company uses energy – every half-an-hour of each day.

Shopping around for a MOP and DC can help save significant amounts a year for every site that meets the P272 criteria.

How can TEAM help? Contact us to find out more.

David Park, Environmental Manager for ScotRail, said:

"We have 22 meters that meet the P272 criteria. We are currently going through the process of getting them upgraded. We've appointed our own Data Collector and Meter Operator because it worked out much cheaper. I would urge businesses to shop around for a DC and MOP because using agents from your supplier could end up costing more."