P272 Guide – Everything you need to know
Read our essential step by step guide to P272 and the cost benefits it could deliver for you.
What is P272?
P272 is about bringing large NHH supplies in line with existing HH and creating equivalence between the two data environments. It ensures efficiencies to industry process as well as a multitude of consumer benefits. Eventually, Ofgem is planning on implementing this for Profile Class 03-04 as well, in an effort to create an entirely smart energy market.
What does P272 mean for my organisation?
The introduction of P272 means that if your organisation has any advanced non half hourly electricity meters in Profile Class 05-08, these will now need to go through a Change of Measurement Class (CoMC) to Half Hourly Settlement.
What is ‘Settlement’?
Settlement is the process which determines the amount of electricity used. This is in order to calculate any imbalance between supply and demand for a given period. Currently, if your metering system is 100kW or above (HH Market), this is done using actual consumption data from each half hour period via remote communication with the meter.
Conversely, if your metering system is below 100kW (NHH Market) it is settled using a “load profile” that equates your consumption for any given half hour period to common patterns of usage.
So, after P272, your Profile Class 05-08 meters will automatically and regularly send actual half-hourly consumption data to your supplier for faster, more efficient Settlement.
What are the Benefits of Half Hourly Settlement?
Half Hourly data reflects your actual consumption and creates the possibility to drive new, meaningful insights into your energy usage. The wealth of extra data will enable you to monitor consumption more closely, buy energy more efficiently and understand your costs. To fully take advantage of these benefits you need the right analytical tools.
By partnering with Stark you will profit from greater transparency and understanding of your energy use, delivered through our outstanding data quality and reporting platform, Stark ID.
Better Procurement Opportunities
Identify and Eliminate Waste
Avoid Tariff Penalties
Ofgem’s analysis revealed an overall net present value of £1 million in implementing P272. The biggest benefit they identified was the ability for consumers to shift their electricity load away from peak periods through Demand Side Response activities. Similarly, this will encourage greater engagement with the energy market, which will help feed back into the wider industry benefits of improved forecasting of demand and faster, more efficient Settlement. Ofgem’s ultimate aim is a more secure, balanced supply market and the data that P272 provides will help in achieving this.
Reduce consumer costs
Supplier, Agent & Settlement efficient
How do I know if I have Profile Class 05-08 meters installed?
To find out if your meters are Profile Class 05-08 you can check your bill or contact us and we will be able to advise you.
To find the Profile Class on your bill, look for the ‘Electricity Supply Number’. In this example, the number in the top left, circled in blue, is the profile class for this particular meter. If this number is from 05-08 inclusive, the meter is included in the CoMC programme. The number circled in green is your Line Loss Factor.
When will P272 affect me?
Following an industry-wide consultation the implementation of P272 has been amended to allow for a more phased migration.
•Start date 5th November 2015
•Any PC 05-08 supply contracts up for renewal after this date must be migrated to HH Settlement within 45 days of renewal.
•All relevant metering systems must be migrated to the HH market by 1st April 2017.
This means that for some business sites implementation will be earlier and for others it will be later, depending on the supply contract renewal date.
Are there any risks?
It is important to act now to minimise risks. Migrating your Profile Class 05-08 meters to the HH market is a complex, multi-staged process that presents considerable risks including:
Massive challenge for Industry
Risks to your energy data
What do I need to do?
You will need to appoint a Meter Operator (Mop) and Data Collector (DC) to maintain the meter and analyse the consumption data. Familiarising yourself with the reasons behind the change will go a long way in gaining the benefits, so make sure you understand how it will affect you. Talking to your supplier, MOP or DC can help in this.
Use a trusted partner
Demand best quality data
Use data to drive down costs
What happens if I don’t do anything?
If you do not appoint a preferred Data Collector (DC), like Stark, to manage the process your supplier will be obliged to take control and appoint their default providers. These providers may have little, or no, experience in the HH market nor the service offering to match your requirements. This would have a negative impact on the quality of your data and your ability to benefit from HH Settlement. Moreover, you could be put on inflated rates as the service would initially be provided out of contract. Make sure you arrange your HH contracts before your scheduled CoMC.
Will I need to change my meters?
If you are a Stark customer it is unlikely you will need to change your meters. If your Advanced Meter(s) can be configured remotely, your Data Collector (DC) will be able to collect the necessary HH readings from the device. However, there are exceptions.
Will P272 affect my bills?
Unfortunately, moving to HH Settlement means new charges will appear on your bill and could involve unavoidable cost increases. However, some may see a decrease in their bills, depending on patterns of usage. These new charges DUoS and TNUoS will appear as line items on your bill.
For expert advice on and to find out how we can deliver your P272 programme contact us today.