P272 Reminder issued by Ofgem

P272 Reminder issued by Ofgem

The energy industry has been given a firm reminder of its obligations regarding P272. The alteration to the Balancing and Settlement Code requires customers in profile classes 05-08 (often referred to as Max Demand Meters) to move to half hourly (HH) settlement by 1 April 2017.

Energy regulator Ofgem has issued a P272 reminder. In an open letter, Ofgem are reminding the industry of the planned enforcement of the P272 and P322 regulatory changes.

Over 100,000 UK businesses are estimated to be affected by the change. Currently their bills are based on annual consumption. Depending on your meter class this is then assigned an industry-agreed calculation to work out what the business should be charged.

However, from April next year these customers will be billed based on consumption data automatically collated every half hour.

An update to the regulation, P322, was announced in June 2015. It requires suppliers to migrate affected customers to HH settlement within 45 business days of contract renewal or when acquiring a new customer. All customers must be migrated by 1 April 2017. Customers acquired less than 45 days before P272 comes into force should still be migrated by 1 April next year. Thus P322 does not replace the P272 deadline. Energy suppliers are approaching the changeover in different ways adding to the complexity of the situation.

Ofgem has warned that it believes a significant number of customers are still not planned for migration until the final few months of the migration period. The regulator has restated that the obligations are compulsory and that enforcement action will be taken against suppliers who fail to meet the deadline. Ofgem will continue working with ELEXON to monitor suppliers’ progress.

Another P272 reminder

For more information on the P272 change and how Utilitywise can help manage the process for you click here.

P272 reminder

Ross Moffat

Posted by on Wednesday, the 14. December at 8.27

Ross Moffat has been a part of the Market Intelligence team at Utilitywise since early 2014. His responsibilities include delivering Market Intelligence reports to clients and managing the Utility Insights Twitter account.Ross has a first class Honours degree in Business and Marketing from the University of Stirling.