Legislation by Ofgem (the new P272 Rule) was put in place from November ’15. This effects how larger non – domestic customers are metered and billed.
It means that all meter profiles starting 05, 06, 07 or 08 (maximum demand meters) will now be billed by half hourly data meters – this must be done by 1st April 2017.
What does this change in electricity metering mean for your business?
The greatest consequence of this is more accurate billing for you – your bill will be based on actual not estimated use.
Your consumption can be mapped in detail and you can see exactly how you use your energy. This will enable better energy management and a reduction in wastage.
In future, suppliers will be able to offer pricing and products to reflect half hourly consumption more closely.
Half hourly data allows a supplier to use historical data of usage. This means that any customers who reduce energy consumption at peak times, for example, early in the morning and late afternoon (especially during winter) may see a reduction in their unit rate when they come to negotiate their next contract.
However, suppliers are not making these changes until the second half of 2016. If your contracts are due to renew in 2016 the current supplier may not be able to offer you a renewal offer. If this is the case, suppliers may guarantee your current prices until they can offer new prices.
What happens to your meters?
If you already have an Automated Meter Reading meter (AMR) then it sends meter readings remotely but the supplier will have to remotely change the way the meter is set up so it sends usage data every half hour. If you don’t have an AMR meter your supplier will have to install one for you.
You will also need to arrange a MOP (meter operator) contract. This is separate from your supply contract and is required for all half hourly meters.
If you’d like to know more about how this change in electricity metering legislation will effect your business get in touch today.