The P272 will be implemented from 01st April 2017.

Profile classes 05-08 meters (MD; maximum demand meter?s) will need to be settled on a half hourly basis from this date.

The main thing to look out for here is a move from being charged for just the day period and night period (2 tariff periods) to being charged differently during red, amber, and green distribution even if you opt for the ?make-up? of your bill to be very similar i.e. remaining on a blended day and night tariff. An additional charge for your capacity will also land on your bill & transmission charges from recorded TRIAD performance (from 1st November to end of February).

Knowing the methodology and composition of charging will be important for businesses to be able to determine the best contractual set-up and for some, the ability to take advantage of the new set-up.

The starting point for this is to look at the half hourly DUoS charges from the area of the country your site is based in.

For instance if you are based in the West Midlands the distribution company that looks after the network and re-charges for energy consumption is WPD. These charges known as distribution use of system charges (DUoS) can be found at the following link: WPD Charging Statement

You?ll notice that there are charges for each financial year (April onwards) so it?s important to use the latest charges but also to realise that these charges will vary on an annual basis (and will impact you directly if you elect a ?pass-through contract? and will impact ?fixed fully inclusive? contract renewals outside of wholesale energy price changes).

The introduction of terminology in the previous sentence is important to take note of; if you take a ?pass-through? contract you are effectively open to changes in costs being passed on to you in your bill as they land; it?s a bit like having a tracker mortgage for your house. When the interest rates change your mortgage also changes; you get the benefits of interest rate cuts and are exposed when the interest rates go up.

We are only discussing a few of the pass-through elements here and understanding each of them will allow you to optimise your tariff such that your businesses energy costs are minimised.

Often, businesses like budget certainty so opt for a fully inclusive contract set-up where, for the contract duration, regardless of DUoS changes (and changes in the other non-energy costs), your budget stays the same.

To understand the half-hourly DUoS charges you can download a charging statement; in this example just click on to the tab named ?annex 1? and consider the HV and LV HH metered line?s.

You will see the red, amber and green charges that apply, and in the additional documentation you will be able to understand the exact times of the day these charges apply.

For instance, the red charging period often falls between 16:00 hours and 19:00 hours, this means the cost for using energy in these 3 hours is actually Red DUoS + Energy Cost + Other Costs (Carbon and Tax); once totalled up you?ll understand that this is a very expensive period of using energy that you will want to try and avoid; since you will still need to use energy you may skew your load away from the red period, reducing your costs but maintaining your overall energy consumption. .

The P272 will kick off with just those meters capable of reading consumption remotely (AMR; automatic meter readers) will migrate from being maximum demand meters; for reference this will be any meter installed since 6/04/2014.

Further information on the P272 changes can be found at: Elexon Announcement

For support on optimisation your contractual set-up you can contact our support team via info@amberenergy.net