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Need to Know: P272 Maximum Demand Meter Changes - Will your business be affected?

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

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 on your electricity meter. Read our comprehensive guide to MPAN numbers for more information.

Contents

  1. What has changed?
  2. Why was the change implemented?
  3. What does P272 mean for my business?
  4. How can Love Energy Savings help?

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 as opposed to hourly to provide more accurate insights.

Businesses with meter profiles from 05-08 will be required to switch to HH meters and 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

Why was the change 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. ARM meters have the ability to record Half-Hourly (HH or 00) consumption. Measuring the HH usage data will more accurately reconcile costs between consumers and suppliers.

Despite the fact that you pay suppliers for your 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 economically buy electricity from the grid.

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

What does P272 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. 

In some cases, businesses may find that there is no change to their billing once they switch, but 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. 

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. We can also clear up any questions you have on the P272 legislation 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 an amazing deal and see how much you could save.