What is P272

What is P272

P272 – Mandatory Half-Hourly Settlement

All businesses that use electricity meter profile classes 05 – 08 will be upgraded to a half-hourly meter. ill change the way you are billed for electricity usage and bring in some additional charges that you need to be prepared for. We have put together an overview of P272 and if you have any questions our team of energy consultants will be happy to answer these for you. 

P272 – Mandatory Half-Hourly Settlement

So how does this affect you and your business?

Having a HH meter installed should make your billing more accurate by measuring your consumption 48 times a day. However, some argue that the upgraded meter is only beneficial to those that actively analyse the data to understand when and how they can reduce their consumption. Analysing times of high usage – are you on the right contract? Off-peak and peak times have different chargeable rates. You can then look at shifting some production to when your rates are lower. If you are unsure about this then we can take a look at your bills for you.

The legislation unfortunately brings additional charges to your business as Half Hourly meters need to be maintained and the data needs to be transmitted to the supplier.

Charges relating to the legislation change:

MOP Charges:Installation and maintenance of the new meter: Meter operator service is the charge incurred over the supply of the meter, maintenance of the meter and communication of the consumption data. This is contractual agreement and can be charged annually.

DC/ DA Charges:Data Collector/ Data Aggregator are charged to collect and record the meter data. This will be read every half hour which is proposed to be a more accurate way of measuring consumption.

KVA Charges:Kilo Volt Ampheres refer to the agreed supply capacity (ASC). This capacity charge is the set amount that is determined by taking the ASC and multiplying it by the agreed rate. It is a monthly or daily generated charge.

Payments on these additional charges can be delayed

In short, having to pay expensive MOP and KVA charges can be prolonged for anywhere between a few months and 3 years depending on when and how you agree your next contract.

By using an experienced energy consultant for your next contract will ensure that you extend having to pay the additional charges (saving you a significant amount of money)  and offer you advice and guidance on the legislation change. Something that will only need to be addressed when your agreement comes to an end. Your consultant will also guide you through timescales, charges, the additional implications and how you can use the data to your advantage.

So what is the best option?

You can give yourself more time to comply with these changes by securing a contract for your MD meter before 1st April 2016. Although we have seen that these unit charges are high so you may be better to secure the HH contract now as it is only a matter of time before having to comply.  So we would recommend embracing the change and ask a consultant to help with the upgrade. They will also talk you through the charges, billing differences and how to break down your electricity statements.

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