Phil Scholes, the Director of SME markets at npower Business reports.
The energy regulator, Ofgem, has approved new regulation which could have an effect on your electricity account.
And so if you’ve not heard of P272 already, you will do soon.
The changes are due to impact all businesses who have automated meters (AMR) installed with a profile class of 05-08 starting in April 2017, regardless of which supplier you are with. The changes were due to be effective from April 2016, but npower lobbied to persuade Ofgem to grant a year’s extension to this.
The argument for this postponement was the need to allow customer’s existing contracts to finish before carrying out any meter reclassifications, to avoid introducing unforecasted rate changes. We appreciate budgeting is paramount for customers, and this could have caused unnecessary problems.
Will this affect what you pay?
The changes will see those with meters installed capable of measuring consumption Half-Hourly being required to be settled Half-Hourly (HH).
The theory behind these industry led changes is that this means that your bills will potentially better reflect the cost of energy your business uses, encourage energy reduction at more expensive times, which in turn will help energy suppliers manage demand on the electricity network at times of peak usage.
But there may also be a downside. Rather than paying NHH standard profile rates, in most cases HH charges will be applied according to actual usage. So while for some this may mean costs going down, for others with high consumption, at the most expensive times of day, costs could rise substantially.
Will there be changes?
Regardless of who supplies you with energy, I would expect them to be in touch with you very soon to discuss next steps and how it will affect you
There are still a number of issues to resolve before P272 can be successfully implemented, but here at npower, we are working hard to find solutions to help our business customers mitigate higher charges; and we already have plans to contact those affected and to find the most cost-effective outcome for them and their business.
Contact your energy supplier for more details.