Menu

Our Insights

Blog Image

High energy user? Changes to Half Hourly settlement legislation could affect you

Date July 24th 2015 by in Categories Energy, Ensuring Compliance

Are you ready for changes to the way that your energy usage is monitored?

OFGEM has instigated industry-wide legislation (P272) to make Half Hourly (HH) settlement mandatory for all large energy users. The legislation is designed so that suppliers can better plan demand and to encourage businesses to look at efficiencies through better awareness of their usage. Settlement is the process by which electricity volumes are allocated to suppliers.

For your business this means that you will need to have the right metering systems and agreements in place by April '16.  If you are not sure of your obligations and require any help on identifying your profile class, or for more information on P272 and how it will impact on your company, please get in touch with your BCR Associates contact.

A bit of background on AMR meters:

AMR meters are an "advanced" meter capable of being read remotely, recording consumption required to give more accurate data on customers’ usage.  The change ensures that suppliers can therefore use this data to settle profile class 05-08 meters rather than a pre-determined industry–wide forecast. This data will be used for billing which means customers’ invoices will be accurate, reducing time spent on bill queries and any other areas.

Half Hourly Meters (HHM) already collect data in this way, however, as the name suggests, a reading is taken every half hour of everyday at all times. These readings provide accurate data and show usage at different times of the day enabling pricing to be based on individual consumption patterns rather than on standard pricing. This is why suppliers prefer to use the HH data collected for pricing rather than estimated consumption.

Many customers are unaware of the new legislation which requires businesses with a maximum demand in excess of 100kWh to have Half Hourly Metering (HHM) installed as standard. If this is the case, other costs that you should take into consideration are capacity (kVA) and Meter Operator agreement (MOP). These elements come under a separate agreement and are both required by law. It's important to note that capacity for the meter can be reduced or increased through your distributer and again, comes under a separate process. If you have questions about this, BCR Associates are here to help you.  

To ensure all customers with these profiles meet the April 2016 deadline, BCR Associates are pricing and implementing changes now.  We work closely with our preferred suppliers to deliver advanced metering, accurate data collection, profiling of consumption and hosting so we can provide clients with superior and flexible reporting/analysis via a single platform. Detailed profiling across all utilities including electricity, gas, water and carbon emissions can be provided together with expert energy saving advice and by monitoring performance we can pinpoint areas where potential waste occurs and highlight any possible savings available from carbon mitigation.

In summary:

OFGEM has instigated industry-wide legislation  (P272) to make Half Hourly (HH) settlement mandatory for all large energy users. The legislation is designed so that suppliers can better plan demand and to encourage businesses to look at efficiencies through better awareness of their usage.

For your business this means that you will need to have the right metering systems and agreements in place by 1st April 2017.

N.B. This is an update from our original article on this subject as the implementation arrangements for this legislation were revised to allow for an extension to 1st April 2017. You may have also referred to this legislation as P322.


Share


This entry was posted in Energy, Ensuring Compliance and tagged energy, Ensure Compliance by . Bookmark this permalink.

Leave a comment