P272 may sound like a WW2 submarine – but it isn’t.
P272 is a new piece of legislation created by the energy regulator OFGEM. It will make half-hourly billing mandatory for businesses with electricity meters in profile classes 05 – 08 where an AMR is fitted.
Half hourly billing is more accurate, but it will make your electricity bill more complicated and could cost you more money.
- 5 November 2015: if you have a new power contract starting after this date, your supplier must move you to a half hourly bill within 45 days of the contract starting.
- 1 April 2017: if you are on an existing contract, your supplier has until this date to switch your business to half hourly bills.
If you already have an AMR* (automatic meter reading) meter, your energy supplier probably won’t have to do anything at your site in order to move your business to half hourly billing. If your meter does need to be replaced, the power to your business will need to be turned off while it is being fitted, which could take upwards of 30 minutes.
It is the supplier’s responsibility to make these changes and you will not be charged separately for the meter (if you need one) or the other changes made – the cost will be rolled into the standing charge or other charges on your bill and spread throughout the contract.
* AMR is the technology of automatically collecting consumption, diagnostic, and status data from water or energy metering devices and transferring that data to a central database for billing, troubleshooting, and analysing
Your bill will change
P272 means that your electricity bills won’t be based on an average consumption profile. Instead, your bill will be calculated based on your exact half hourly usage.
Your bill will be more accurate, but you may be billed differently depending upon the time of day you use your power – at times of peak demand, you could be charged more. This is a charge passed to the energy supplier by the power distribution company that operates in your area.
The way your bill is laid out may change and you might see some additional lines of charges shown. These charges for distribution and transportation of power were included on your old bill but were simply rolled into the overall energy charge.
The good news
If your business uses power during off-peak times, you may find your bill coming down. We are here to help you plan for this change and help you take advantage of it.
- Call our helpline (0330 303 3313) to discuss your meter(s) and find out which could be impacted by P272. We can also tell you what the peak demand times are in your area.
- We are talking to all of our suppliers about P272 to find out how they are going to tackle the change and what impact this has on available energy deals. We’ll keep you up to date on what each supplier is likely to do as we find out.
- Our Utility Insight SmartDash enables you to see your usage on a web browser or smart phone and once you can see when you are consuming power you can control it. Our experts can show you how the stream of usage data could be used to control your consumption during peak times and even lower your consumption overall. Depending upon your energy costs, a whole host of Utilitywise products can be brought into play to manage and control your energy use including our new t-mac controls technology that can control your usage automatically.
- We can also arrange for separate meter and data collection contract, which will give you more flexibility with your consumption data but will involve a separate bill from the data collector.
P272 brings the advantages of managing and controlling energy to a much wider range of businesses. Click here to find out more about P272 and how we can help.