If your business is caught by the P272 regulations, you may be aware that an amendment to the regulation (P322) has delayed the final implementation date until April 2017. Whilst this has given energy suppliers a longer grace period in which to roll out the smart meters required to implement P272, what it doesn’t mean is that nothing will happen in the interim or that those in the affected profile classes can postpone planning for the changes. In fact, very much the opposite is true; particularly for those businesses whose supply contract is due for renewal during 2016.
If you are a business in profile class 05-08 with half-hourly enabled meters already installed, and your contract renewal is due before April 2017, your supplier is obliged to transfer you to half hourly settlement within 45 days of renewal. This is also true where there is a change of tenant. All new contracts placed will be required to conform with the new legislation within the same deadline of 45 days.
For those affected businesses whose contract renewal date is after April 2017, there is an obligation on the supplier to transfer you to HH settlement prior to the April 1st implementation date. For some businesses this may mean being migrated over to HH settlement earlier than expected. The timing will be highly dependent upon a supplier’s individual migration plan and it is worth communicating with them in detail about timescales and contract changes. Whatever your contract renewal date, it’s not too early to be prepared.
Whilst P272 will eventually reach everyone in the affected profile classes, market intelligence suggests that the way in which individual suppliers are dealing with migration varies greatly, which might make tendering a complex process.
New offers to customers should include both HH and NHH offers, with a clear breakdown of MOP, DC, DUOS and TuOS charges, but in many cases this simply isn’t happening; making it difficult to compare the relative costs of offers. If you are confused by the impact of the new charges, or uncertain about how your contract will change after P272, it may pay to seek expert advice – and make sure your business isn’t hit with any unnecessary costs.