What is P272?

The intriguingly named P272 is a piece of regulation that was introduced by OFGEM in October 2014 that is due to come into force in April 2016. It relates to those businesses who have what are called maximum demand meters with an automatic meter reading meter (Smart meter) fitted.

The regulation states that from April 2016 these supplies must be settled on the same basis that Half Hourly meters are using actual Half Hourly (HH) consumption data. This means settlement using an industry wide forecast to allocate electricity volumes to each suppler.

But how do you know if you have a maximum demand supply? If you look at your bills you will see what is called your MPAN that will look like this –

MPAN

 

 

 

 

 

The red number is the profile of your supply and if your number is 05, 06, 07, or 08, and you have a smart meter then you will be affected by P272.

If you do fall into this category then you may well see changes to your bills before April 2016 as suppliers are looking to manage a move to the new regulations before the deadline date.

So is a move to the new way of settling going to be better or worse for you? There are pro’s and con’s if you were to change over. The renewal process can be more demanding as you will need to agree a renewal price in a short time frame, but if you are actively looking to reduce consumption then future pricing will take such reductions into account and you may see you prices fall.

One final point to make on P272, the profile shown on your bill does not always correctly reflect your supply. There may be a case to change your profile and therefore avoid P272.

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