What is Ofgem Regulation P272 [Guide]

In 2015, the P272 regulation was introduced, impacting the energy bills of every type of business across the UK. But what exactly does the introduction of P272 mean for your business and how can you get the most out of it?

We have covered everything you need to know about the balancing and settlement code p272 and how it will have an impact on your business below. Read on to discover whether or not your business will be affected by this change, and if so, how you can improve your energy efficiency today.

How does the Balancing and Settlement Code P272 impact my business?

Before you can tell whether or not your business will be impacted by P272, you will need to check your profile measurement class. Profile classes can be found as the first 2 digits on your electricity MPAN.

The profile classes currently affected by the balancing and settlement code p272 are:

05
06
07
08

If your business is impacted by the P272 regulation then you will need to switch to a HH business meter. The main changes will be that your energy readings from your meter will be far more accurate as they will be sent to your electricity supplier every half-hour.

This data can then be used to ensure you are paying the correct price on your bill and that you can get the most out of your electricity supply. The way bills are charged will also be slightly more complex than most businesses are used to.

This added complexity does come with some benefits, however. Expect a more accurate reading on consumption data as well as the ability to avoid peak times and generally lower your overall costs. You can read more about the benefits of the P272 regulation below.

What are the benefits of the P272?

Manage energy consumption

With the improved data readings, it has never been easier to manage the actual consumption of your business. This will allow you to quickly manage your energy use, which can lower your overall business costs in the long run.

The P272 regulation has allowed business throughout the UK to truly discover how much energy they use. The half-hourly settlement offers frequent and accurate readings, which can help you and your business manage equipment far more efficiently.

Managing your energy consumption is far easier with a HH meter than the older on-demand meters. Be sure to take advantage of this to improve your businesses budget.

Reduce your electricity bill

With your electricity data now being uploaded every half-hour period, you can expect your electricity bill to be reduced - as long as you take reasonable steps to lower your electricity consumption. Due to the improved accuracy of your AMR meter, your energy bill will be far more accurate.

This will mean that if you are still using high amounts of electricity, your supplier will still charge you for this. The best way to take advantage of the improved accuracy of your advanced meter is to actively lower your electricity use.

Some electricity suppliers will also work alongside you to help you lower your business electricity bill, especially at peak times!

Maximise energy efficiency

Energy consumption data can be used to ensure you maximize your companies energy efficiency and get the most out of your electricity tariff. With the accurate readings gathered by the new HH electricity meters, you can quickly garner more understanding of when you use the most energy.

By checking your actual consumption, you may be able to determine what is using the most energy and how to lower your overall consumption. Getting the most out of your supply is not only a great way to do your bit for the environment, but it can also save you a lot of money.

Compare energy suppliers with Business Energy UK today

The global energy market is populated with thousands of fantastic business energy suppliers, so we know how complicated it can be to find the right one for your business. Thankfully, our highly trained staff are here to offer you a helping hand.

We can compare a range of energy supplier plans to find the best one for your companies consumption rates. So whether you are on the lookout for a green energy supplier or the cheapest one for your business, get in touch with us today.

Final thoughts

Although the introduction of P272 was first met with speculation, it has quickly become one of the best regulations within the energy industry. By aiding thousands of businesses throughout the UK to effectively manage their energy use, it has saved millions of pounds since its introduction in 2017.

Be sure to take advantage of these improved meter readings and get the most out of your businesses energy consumption. With efficient management, you may be able to save money on your next energy bill!

Frequently Asked Questions

When was P272 introduced?

The P272 regulation was first introduced in the UK on the 5th of November 2015. At the time it was considered one of, if not the, largest change in the business and non-domestic energy market within the UK. Since its introduction it has allowed energy suppliers to provide more accurate bills to any companies they supply energy to.

The deadline for all meters that were impacted by P272 to migrate to a half-hourly settlement was the 1st of April 2017.

How can I reduce the energy usage of my business?

Reducing the energy usage of your business is an incredible way to lower your overall running costs and improve your budget. Some of the simplest but best ways to lower your energy costs are to turn off the equipment after use and switch your lighting fixtures to LED bulbs.

If your energy supplier offers you the ability to, you should also install a smart meter on your business premises. This will help you keep track of how much energy your business uses and can even help you lower it in some cases!

How do half-hourly meters work?

As the name might suggest, a half-hourly energy meter will send updates to your meter operator once every half-hour. This half-hourly data will be provided by automatic meter reading technology and is now the standard across all businesses in the UK.

Due to the data being uploaded in a half-hour period, it will help reduce how much energy suppliers charge you. As the readings are more accurate, you can expect far fewer instances of incorrect billing.

How can I find out the profile class of my business?

The easiest way to figure out what profile class your business is is to check the first two digits of your businesses electricity MPAN. If you are a domestic electricity user then your first digits should either be 01 or 02.

Business users will usually find their first two digits to be anywhere between 03 and 08. This classification will let you know how much energy you are using and is easily the best way to check your profile class.

What is the Ofgem regulation P272?