P272

P272

by Michael Doyle

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What is P272?

P272 is a mandatory OFGEM regulation and will affect upwards of 160,000 sites or 280,000 MPANS across the UK.

P272 requires all electricity meters with Profile Classes 05-08 to be settled on the Half Hourly (HH) market.

Whilst originally scheduled for April 2016, amendment P322 has instead introduced a phased approach, meaning some sites will be affected as early as November 2015.

Most importantly, P272 represents a significant opportunity for your business but early action is vital too.

Why BIU for P272?

Managed correctly, P272 represents a significant opportunity to save both costs and consumption.

BIU is the UK’s leading energy consultancy and manages over 170,000 electricity supply points across more than 122,000 properties, servicing 10 per cent of the UK’s commercial energy consumption each year.

Our clients are spending over £1billion annually on their utilities and our team is streamlining the whole process.

BIU have the expert staff, systems and industry knowledge and experience to manage your P272 obligations and deliver the maximum benefit to your business.   Contact us today to see how we can deliver cost and consumption reduction across your business and help you derive the maximum benefit from the obligations.

How can P272 benefit my business?

If you don’t act, your supplier will arrange a default Meter Operator and Data Collector / Data Aggregator contract for you.  Yet the market in this area is open and highly competitive – acting early can result in significant savings of around 50% of this cost.

Industry estimates suggest saving opportunities totaling more than £100million exist in this area.

BIU has access to highly competitive prices across the industry and can source MOP and DC / DA agreements that are bespoke to your needs and deliver the greatest savings.

How did P272 come about?

Smartest Energy proposed P272 in May 2011 and it went through a number of  Industry Impact Assessment, Workgroups and modifications before finally being approved in October 2014 with an initial implementation data of April 2016.

So what is P322 and has the implementation date now changed?

P322 was proposed by RWE Npower in April 2015 and contained new arrangements for migrating sites with Profile Classes 05-08 to Half Hourly settlement under P272 obligations.

These new arrangements included a phased approach and Performance Monitoring.  Two proposals were put forward; P322 with a migration end date of 2nd November 2017 and an Alternative Modification with a migration end date of April 2017.

The Alternative Modification was approved and from the 5th of November 2015, advanced meters in Profile Classes 05-08 will need to be migrated to the HH market within 45 days of acquisition or contract renewal, with all migration completed by April 2017.

P272 – Myths busted

P322 HAS PUSHED EVERYTHING BACK A YEAR.  THIS WON’T AFFECT ME FOR SOME TIME.

This isn’t true.  Communication from OFGEM approving P322 Alternative in June 2015 states that “P322 Alternative requires that, from 5th November 2015, suppliers must move sites in Profile Classes 5-8 with advanced meters to HH settlement within 45 days of customer acquisition or contract renewal.” This means some migration needs to take place by January 2016.

I’VE GOT UNTIL APRIL 2017 – I DON’T NEED TO ACT.

This is not the case.  A lack of action could see you tied in to default contracts for MOP and DC / DA agreements, which could cost significantly more than a competitively sourced agreement.

Secondly, you may have months, not years before your supplies fall under P272 obligations due to the phased nature of P322 and the OFGEM statement above.

I AM GOING TO HAVE TO FIT NEW METERS ACROSS MY ESTATE

This is unlikely.  Since April 2014, ‘advanced’ or ‘smart’ meters capable of being read remotely and recording HH data have made mandatory on all 05-08 Profile Class supplies, so in most cases appropriate meters will already be in place.  Exceptions may exist where advanced meters could not be fitted for H&S reasons etc, where an existing meter cannot be re-programmed or where installation took place but no signal can be received due to location.  However these incidences will represent a very small minority of cases.  Where you do need an upgraded meter or a new installation, BIU can manage this for you.

MOST MIGRATION WILL TAKE PLACE CLOSER TO APRIL 2017

Analysis of supply contracts across the Big 6 energy suppliers suggests that around 30% of supplies will migrate in early 2016, with the remainder spread across the period around contract renewal dates.

MY ENERGY COSTS ARE GOING TO INCREASE AS A RESULT OF THIS?

They could do, or they could decrease depending on your consumption pattern.  BIU can assist you to use P272 as a tool to drive costs and consumption down through monitoring and target and DSR programmes.  Our bespoke systems and expert staff are able to derive maximum benefit to your from the improved data delivered by HH billing.  Contact us to see how we can add real value and reduce both costs and consumption across your business.