What is P272?
P272 is a mandatory industry-wide change instigated by OFGEM for the half-hourly (HH) settlement of profile class 5-8 meters that have capable metering in place, i.e. where AMR (Automatic Meter Reading) meters are fitted. Settlement is the process by which electricity volumes are allocated to suppliers.
This change is to be implemented by 1st April 2017. AMR meters are able to record consumption in each half-hour giving more precise data on customers’ usage. The change requires that suppliers use this data to settle profile classes 5-8 rather than a pre-determined industry-wide forecast. This data can also be used for billing which means customers’ invoices will better reflect the cost of their energy.
This obligatory change is industry-wide and will be implemented by all suppliers. We have the interest of our customers and consultants at heart and were among those suppliers lobbying for the deadline for P272 to be pushed back until 1st April 2017 to avoid unnecessary inconvenience to customers who may potentially require mid-contract changes.
What’s Haven doing about P272?
From 1st May 2015, Haven will be pricing on half-hourly terms for all renewals for customers with profile classes 5-8, who have the correct metering in place. This will ensure the majority of customers are being treated as half-hourly by 1st April 2017 and will minimise the number of customers who will require a mid-contract change to half-hourly invoicing prior to this date. Once customers’ new half-hourly contracts commence, they will receive half-hourly bills.
Existing customers: We will be advising existing customers who are affected by this change via renewal letters issued after 1st May 2015. Customers without the correct metering in place will continue to be priced as non-half-hourly until further notice.
New customers: Any new quotations for meter profile classes 5-8 will continue to be treated as non-half-hourly with corresponding prices and invoicing until further notice.
Key Points for profile class 5-8 customers
- All suppliers are required to settle profile classes 5-8 with AMR meters on a half-hourly basis by 1st April 2017.
- All of Haven’s renewals for customers with profile classes 5-8 with appropriate metering in place will be priced on a half-hourly from 1st May 2015.
- Haven is implementing these changes from the 1st May 2015 to minimise the number of customers who will require a mid-contract change to half-hourly invoicing prior to the 1st April 2017.
- This is an industry-wide regulatory change, not just Haven. All suppliers will have to settle profile classes 5-8 on a half-hourly basis as above.
- This change results in customer bills that better reflect customers’ energy, distribution and transmission charges. Depending on the existing pattern of usage some customers will see a fall in costs and others will see a rise. Customers who are able to alter when they use power to minimise consumption at expensive periods will, over time, see a reduction in renewal costs. This is because half-hourly prices for are based on historical usage patterns.
P272 Customer Q&A
1. What is P272?
P272 is a mandatory industry change that affects the way in which your energy consumption is settled. P272 regulation stipulates that AMR (Automatic Meter Reading) meters with profile classes 5-8 will be settled on actual half-hourly (HH) consumption rather than a pre-determined industry-wide forecast from April 2017. Settlement is the process by which electricity volumes are allocated to suppliers.
Half-hourly customers with a Current Transformer meter are required to pay an Availability Charge which is measured in kiloVolt Amperes (kVa). It is effectively the maximum electricity capacity you can draw from the grid. This is a charge raised by your Distribution Network Operator(DNO) and collected by your supplier. Half hourly customers with a whole current meter will not incur this charge.
2. Will it affect me?
If you have an AMR meter and your profile class is 5, 6, 7 or 8 then you will be affected. Profile classes 3 and 4 are not affected by P272, even if they have an AMR fitted. Your profile class can be found on your bill and makes up part of your supply number which is shown as follows:
In the example shown, the profile class is 3 and is highlighted in blue. Profile classes 5, 6, 7 and 8 would appear as 05, 06, 07 and 08 respectively.
3. There seems to be the option under the CMP241 modification proposal for suppliers to continue using the NHH charging method for meters that have already moved over to HH for the next charging year (Apr-16) before P272 is in place, is this correct?
CMP241 and 247 allow a supplier to avoid overpaying for TNUoS on a supply which is converted before or during the triad period. Since Haven builds the forecast TNUoS cost into the unit rate, and do not apply triad pass-through costs on normal HH fixed price contracts, the use of CMP241 and 247 will not be required.
4. Will P272 affect how much I pay?
By measuring energy usage through half-hourly consumption data, rather than through a pre-determined industry-wide forecast, suppliers are able to gather precise data on your usage and provide you with a bill that better reflects the cost of your energy.
Half-hourly contracts are priced on customers’ actual historical half-hourly usage as this directly affects electricity, distribution and transmission costs. If over time you minimise consumption in the more expensive periods (i.e. early morning and late afternoon, particularly in winter months) this will be reflected in lower prices when your contract is renewed.
5. When will it take effect?
Suppliers are obliged to be compliant with P272 by 1st April 2017. As such, from 1st May 2015, Haven will be treating renewals for all customers with AMR meters on profile classes 5-8 as half-hourly. By implementing this change from 1st May 2015, Haven will minimise the number of its customers that will require a mid-contract change to half-hourly invoicing prior to 1st April 2017.
6. Is it only Haven that is implementing P272?
No, P272 is a mandatory industry-wide change that affects all electricity suppliers. Haven was amongst those lobbying for the deadline for P272 to be pushed back until 1st April 2017. This was to avoid unnecessary inconvenience to customers potentially requiring mid-contract changes in order to remain compliant.
7. Will I require a new meter?
In the majority of cases, no. If you have an AMR meter that can be remotely configured, it will already be capable of taking half-hourly readings and it is unlikely you will require a meter change.
8. Will my bills look any different?
Yes, there will be differences in how your bills will look and some of the lines that appear on them. Haven customers who renew onto half-hourly contracts will receive a leaflet explaining these differences along with their first half-hourly bill.
9. Can I downgrade to a Profile Class 3 or 4 instead of having half-hourly settlement under P272?
ELEXON, the body responsible for the delivery of P272, has advised that if a profile class 5-8 supply has an advanced meter fitted, then it must be migrated to half hourly settlement in line with the P272 requirements, and cannot be moved to Profile Classes 3-4. More information can be found on the ELEXON website here or by emailing them at P272implementation@elexon.co.uk.
10. Do I need to check my internal electrical installation and circuit protection?
Whilst all profile class 5-8 customers will be assigned a maximum import capacity (kVA) figure from their DNO, we would like to stress that this figure has often been based upon the historical consumption at site. This figure relates only to the capacity of the distributor's supply connection. We would stress to customers to check their internal electrical installation and circuit protection is suitable and safe should the full agreed capacity be used.