Ofgem's Balancing and Settlement Code Modification Proposal 272
What is P272?
P272 is an Ofgem change to the Balancing and Settlement Code. It aims to make settlement and billing more accurate. This change will affect an estimated 160,000 meters across the UK.
P272 impacts non half hourly (NHH) sites in Profile Classes 5 to 8 (also known as Maximum Demand sites). By the 1 April 2017, all customers with a meter Profile Class 5 to 8, and an Advanced (AMR) meter installed, will need to be settled half hourly (HH).
What do I need to do to prepare for P272?
You should check to see if you’re impacted. You can do this by checking the first two digits of your Meter Point Administration Number (MPAN) on your meter. Numbers starting 05, 06, 07 or 08 are affected.
As this is a regulatory change across the industry, suppliers should implement P272 by the industry-wide deadline set by Ofgem - 1 April 2017 .
Why is P272 happening?
The modification proposal advises the industry should use energy data for ‘settlement’ to improve accuracy. It helps distributors better understand electricity use, so they can make sure the networks are maintained properly.
Settlement is how suppliers match, and pay for, the energy consumed by customers, to the energy purchased on their behalf.
For non-half hourly sites, consumption is ‘profiled’ across the industry, based on what a typical customer in a relevant Profile Class uses. It means suppliers must obtain meter readings before they can ‘settle’ based on actual consumption.
For half-hourly sites, the meters record the consumption reading every half hour, rather than waiting for meter readings. This means suppliers settle their consumption based on actual usage.
What about billing?
P272 should improve the accuracy of some customers’ electricity bills. This is because bills will be based on actual HH meter readings.
The changes from P272 do not require suppliers to bill a customer as HH, only to settle as HH.
Suppliers will determine how to implement the changes, as well as how their own billing and pricing structures will look.