What is P432 and How To Prepare
Understanding the P432 Modification
As the U.K. works towards its net-zero targets, how electricity is metered is changing to support the broader Market-Wide Half-Hourly Settlement (MHHS) programme. There are many benefits for businesses waiting to be unlocked. This starts with having the right equipment.
Keep reading to learn more about P432 and what this means for your business.
What is P432?
P432 is a regulatory modification that requires new meter connections with current transformer (CT) advanced meters to be moved to half-hourly (HH) settlement. This has been introduced by Elexon and is approved by Ofgem. One of the primary purposes of P432 is to co-ordinate supply and demand through greater data visibility.
P432 required that all new CT meter connections must be subject to half-hourly settlement by 1 April 2024 and all P432 requirements applied to existing non-half-hourly (NHH) CT meters from 15 April 2024. However, another deadline lies ahead, requiring all NHH CT meters to be converted to HH settlement and undergo a Change of Measurement Class by March 2026.
What Are the Benefits of P432?
More regular and accurate energy consumption data has potential benefits for businesses of all sizes.
- – It will incentivise competitive flexible time-of-use tariffs. This means all businesses will have the opportunity to adjust behaviour, cut consumption, and capitalise on cost savings.
- – Reduced billing inaccuracies, rebilling issues, and the time it takes to resolve issues.
- – The opportunity to be truly strategic around reduced energy consumption – using data to guide the process.
- – The timeline of P432 supports government’s MHHS programme and helps to streamline this migration process.
What Does Ofgem Have To Say About P432?
“Currently, generators and suppliers trade electricity in the wholesale market in half-hourly periods, but most customers are settled on a ‘Non-Half-Hourly’ (NHH) basis, using consumption estimates based on profiles of average customers and meter readings. There can be considerable variances between these estimates and actual usage. Market-wide half-hourly Settlement (MHHS) will use smart meters to send accurate signals to suppliers about the cost of serving their customers throughout each day. This will place incentives on suppliers to offer new tariffs and products that encourage more flexible use of energy and help customers lower their bills. MHHS will, therefore, bring significant benefits to customers and wider society.” – Melissa Giordano.
After assessing concerns and adjusting timeframes, Ofgem’s updated approval noted:
“MHHS will promote competition and innovation in supply and help deliver the benefits set out in Ofgem’s MHHS Final Impact Assessment, including facilitating a cost-effective transition to Net Zero. Doing this in a timely way, facilitated by P432, will enable the earliest possible realisation of those GB-wide consumer benefits.”
How P432 Will Affect You and Your Business’s Next Steps
At this point in the timeline, business customers have the chance to get ahead of transitions and maximise the value of their energy portfolios. At Smarter Business, our team is here to help – whether you need advice on your meter and existing contracts or are looking to evolve your energy management strategy.
What Meters Are Affected by P432?
The first step is to know whether your meter is affected by P432. How can you identify if you have a half-hourly meter? The easiest way to find out is to check the MPAN number on your electricity bill. If the profile class (the first two-digit number following the ‘S’) is 00, you have a half-hourly meter.
It is important to note that some meters may be remotely configured to start collecting HH data for the purposes of P432. With these changes ahead, it is prudent to connect with your supplier or your dedicated energy consultant to streamline the process and ensure your business is getting the best value from the change.
Partner with the Energy Experts at Smarter Business
Whether you need P432 advice or want to explore the ways to maximise the advantage of these industry-wide changes, there is no simpler way to strategise than with the team at Smarter Business. Contact us today for:
- – The latest metering technologies.
- – Smarter energy management software – with real-time data insights, alerts, and advanced reporting to unlock the power of your energy data and create data-driven strategies.
- – Energy procurement that compares competitive quotes from leading suppliers, with contract terms and tariffs.