P272 – Taking The Benefits Of Smart Metering
There’s important news for industrial and commercial energy consumers when it comes to benefits of smart metering…
Many companies with high energy consumption are now required to use smart metering that provides a half-hourly (HH) measurement. The smart meters are provided by the energy suppliers. These suppliers face a task, as most of these corporate users currently use estimated (NHH) measurements.
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What is P272?
To quote OFGEM, the industry regulator: “The electricity settlement process set out in the Balancing and Settlement Code (BSC) places incentives on suppliers to buy energy to meet their customers’ demand” and “Suppliers have a licence obligation to supply larger non-domestic customers in Profile Classes 5-8 through an advanced meter that can record half-hourly consumption. BSC Modification Proposal 272 would require that these consumers are settled using their half-hourly data.”.
When must P272 be implemented?
There’s more at OFGEM’s web site. The P272 proposal that has been approved by OFGEM requires these changes to be in place by April 2017 for class 05~08 meters. These are non-domestic energy consumers and the class number depends on the peak load factor.
The bills that customers receive will look different for HH. There will be a cost for consumers for operating the new meters, and for collating and processing the data. Also, as charges are made directly rather than estimated, costs will be higher during peak times, including distribution use-of-system (DUoS) charging.
What are the benefits of P272?
Nevertheless, there are real potential benefits from using this improved energy consumption data stream to manage consumption and reduce costs, for instance by changing the schedule by which energy is consumed. Heating and air-conditioning, machinery power and other uses can be rescheduled to avoid high costs.
Which organisations need to implement P272?
According to OFGEM’s P272 site, over 160,000 medium energy usage organisations in Britain’s are affected by the changes. These organisations will need to appoint meter operators (MOP’s) and data collectors (DC’s) ahead of the deadline, to manage the meters and send the new readings.
How will Smarter Business help?
Energy consumers need to act now to implement a strategy to take advantage of the changes in energy management created by P272, to negotiate the most favourable energy supply contracts, to manage energy measuring and reporting and where necessary appoint a MOP and DC/DA provider.
Smarter Business will partner with you to deliver the best reporting, find the best deals and take advantage of the opportunities offered by P272. Visit our Contact page, or call 0845 1800 700 to talk to our consultants.
We offer experience and expertise to ensure that your P272 implementation deals with the issues and achieve maximum benefit through: