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Do the P272 Maximum Demand Meter Changes Affect Your Business

Energy regulators Ofgem approved the P272 legislation in 2017 and changed how maximum demand meters work for businesses. The changes to how companies record their electricity usage affects any customers with a 05, 06, 07 or 08-meter profile.

If you are not sure what type of meter you have, you can take a look at your MPAN number, which you'll find on your energy bill and your electricity meter. Read our comprehensive guide to MPAN numbers for more information.

Contents

  1. What is P272 legislation?
  2. What has changed?
  3. What are half hourly meters?
  4. Why was P272 legislation implemented?
  5. What does P272 legislation mean for my business?
  6. How does P272 Ofgem affect my billing?
  7. Will P272 legislation cost my business more?
  8. How can Love Energy Savings help?

What is P272 legislation?

P272, or P272 Ofgem, legislation was passed into law in 2017 and is the name of a piece of Ofgem regulation. The regulation is mandatory and changed the way electricity suppliers manage electricity consumption for businesses within specified energy use. This has resulted in some businesses changing to half hourly meters which can be a good option for many companies, as they produce more accurate bills.

What has changed?

The P272 legislation has introduced half hourly meters (referred to as HH or 00 meters)  to provide more accurate billing for businesses and to prevent overspending on electricity. Units of energy will be measured and uploaded by your supplier every half hour to provide more accurate meter readings.

Businesses with meter profiles from 05-08 will be required to switch to half hourly meters and they are mandatory for customers with an energy demand greater than 100kW. 

This regulation is called 'settlement' and affects over 100,00 UK companies. Suppliers are wholly responsible for implementing any P272 changes with their customers. They should be in touch to go through your options if your MPAN number is between 05 and 08.

Mpan _graphic -small

 

What are half hourly meters?

Half hourly meters take automatic meter readings every 30 minutes and send it directly to your supplier, so there's no need to provide manual readings. This means that your bills are more accurate than they would be if estimated and can help you to avoid overcharges or back-billing.

Half hourly meters can be useful because they allow you to monitor your energy usage closely.

By reviewing your energy consumption and making changes where necessary, you can make your business more energy-efficient and save on your bills.

Installing a smart meter can also help businesses with a lower energy consumption keep a closer eye on your energy usage and take steps to lower your bills.

Why was P272 legislation implemented?

The legislation allows suppliers to track energy usage for businesses that often have high levels of energy consumption and ensure that these companies now receive more accurate billing.

Most large non-domestic electricity consumers were issued with Automated Meter Reading (AMR) meters in April 2014. AMR meters can record half hourly (HH or 00) consumption. Measuring half hourly usage data will more provide more accurate costs for consumers and suppliers.

Even though you pay suppliers for your business electricity, it is actually delivered to your area by the Distributor Network Operator (DNO). The data gathered by the P272 changes better inform the DNO of how much energy needs to be supplied to a particular area. This also helps suppliers to buy electricity from the grid economically.

With a better understanding of energy usage, customers now have the power to reduce their overall commercial electricity costs by using energy more effectively during off-peak times.

What does P272 legislation mean for my business?

If your business currently uses a 05-08 meter, you may be subjected to extra charges when you switch to a half-hour supply. This is due to suppliers needing more time and resources to record and process your energy usage.

You could also see an increase in your network charges if your business has a Current Transformer (CT) meter. The main reason for the rise is because your distribution network operator will reserve your capacity on the network - resulting in a charge. 

How does P272 Ofgem affect my billing?

There will be differences in your business energy bills due to the usage of Half Hourly data, which might include new lines on each bill as your costs will be shown as a breakdown.

In some cases, businesses may find that there is no change to their billing once they switch. Still, if you are concerned about how long it may take for your energy usage to be recorded and for your bills to stabilise, your energy provider will be able to provide more information.

Will P272 legislation cost my business more?

As P272 legislation ensures energy usage based on half hourly meter readings, your energy provider will bill you based on your actual energy consumption. Half hourly data allows a supplier to use your historical data, so business customers who reduce energy consumption at peak times can reduce their unit rate when they are negotiating their next contract.

How can Love Energy Savings help?

By choosing to switch with Love Energy Savings, our team of energy experts will be on hand every step of the way. We can secure you the fairest deal on your business energy, thanks to our years of experience helping businesses like yours.

Our large business team specialises in helping high energy usage companies secure the best possible energy deal which suits their specific needs. They will also be on hand to answer any questions you may have on the P272 legisltion or maximum demand meters.

Get in touch with our team at 0800 9888375 or enter your postcode into our free energy comparison tool to find a fantastic deal and see how much you could save.