P272 Modification to Balancing and Settlement Code
What is P272?
P272 is a regulatory change which alters the way in which business energy use is metered and billed. Currently, all meters within Profile Classes 05-08 must be an Automatic Meter Reading (AMR) meter capable of being read remotely and recording consumption data on a Half Hourly (HH) basis. However, there is no mandate for this to be settled on a HH basis.
P272 proposes to make HH settlement mandatory for all metering systems within Profile Classes 05-08 (where capable metering exists). This is a response to the claim that the use of Non-Half Hourly (NHH) consumption data is not as accurate and does not accurately reflect customer behaviour.
If any supply contracts for meters with a Profile Class of 05-08 are up for renewal before 1st April 2017, the sites will need to go through a Change of Measurement Class (CoMC) to HH Settlement within 45 days of the renewal date. Alternatively, if any supply contracts for meters with a Profile Class of 05-08 are up for renewal after 1st April 2017, the sites would need to go through a CoMC to HH Settlement before 1st April 2017.
When Will P272 Be Implemented?
P272 will be implemented on 1st April 2017.
What Are The Implications For My Business?
P272 provides new opportunities for business - for example the use of HH data reflects the actual consumption of your business, and provides the opportunity to reveal meaningful insights as to your energy usage.
However, P272 and the shift to HH Settlement leads to increased complexity with regard to energy procurement. You must appoint a Meter Operator (MOP) and a Data Collector to maintain and read your meter. If you do not appoint your preferred provider in time, the supplier will appoint their default agents. Furthermore, new costs will appear on your HH bill- including both Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges.