P272 – Important Electricity Market Changes

Ofgem have issued an important update that P272 is now postponed until 1st April 2017. This also includes the P322 modification which aims to make the transition to HH settled sites easier.

You can download the full document from OFGEM here or email us for further information.

What is P272?

Since April 2014 all Electricity meters with profile classes 05-08 were mandated to be an ‘advanced’ meter, capable of recording Half Hourly (HH) consumption and being remotely read.  However, there was no mandate to settle these capable meters on the HH market.  Ofgem committed to create market conditions necessary to support the benefits of Smart Metering and this has been highlighted in a new proposal 272 (P272).

P272 proposes to make HH settlement mandatory for such meters, as it is believed that Non Half Hourly data is not as accurate.  Ofgem have now extended this deadline to 1st April 2017. It is estimated this will affect 155,000 (05-08) profile meters.

Will I be affected and what will it cost?

By measuring energy usage through HH consumption data, rather than through a pre-determined industry-wide forecast suppliers are able to gather precise data on your usage and provide you with a bill that better reflects the cost of your energy.  HH contracts are priced on a customer’s actual historical half hour by half hour usage as this directly affects electricity, distribution and transmission costs.  Depending on the existing pattern of usage some customers will see a fall in costs and others will see a rise when the contract is renewed.

Why are Ofgem introducing P272?

Ofgem believe that the roll out of Smart Metering has the potential to create smarter energy markets that work better for consumers.  Their belief is that it will allow more efficient and cost effective systems, energy production and transportation.  It will enable consumers to control their energy through accessible consumption information, thereby avoiding the most expensive periods of the day; This is known as Demand Side Response (DSR).

Will I be affected and what will it cost?

By measuring energy usage through HH consumption data, rather than through a pre-determined industry-wide forecast, suppliers are able to gather precise data on your usage and provide you with a bill that better reflects the cost of your energy.

HH contracts are priced on a customer’s actual historical half hour by half hour usage as this directly affects electricity, distribution and transmission costs.  Depending on the existing pattern of usage some customers will see a fall in costs and others will see a rise when the contract is renewed.

Next Steps…

BIU will be monitoring the progress of P272 and updating customers with any additional information in due course.  We will be looking at how our existing biu247 online system can assist our customers with DSR and increase capabilities should this be deemed necessary as P272 becomes clearer.

For further information please call 01253 789816 or email energymanagement@biu.com