Changes to the P272 code could save businesses thousands in cash after a reassessment by UK Balancing and Settlement Code manager ELEXON.
It has published an update on the criteria that non-domestic SVA metering systems need to have to be allocated to profile classes 3 or 4 after a campaign by a leading energy broker.
The update aims to remind the suppliers of their obligation to correctly assign profile classes to business energy customers for new and existing connections.
Under these criteria, a non-domestic customer with a new connection can be settled Non-Half Hourly (NHH) under profile classes 3 or 4 if the supplier is willing to do so and the licensed distribution system operator does not require maximum demand metering.
In addition, a change of Measurement Class and Profile Class, from Half-Hourly (HH) settled to NHH Profile Class 3 or 4 is permitted if a metering system has been validly reclassified as being within profile Class 1-4, Elexon suggests.
The supplier needs to be satisfied that the customer meets the criteria of Profile Class 3 or 4.
Since the introduction of P272 a metering system that meets the criteria of Profile Classes 5-8 and was settled HH, cannot revert back to NHH.
Ofgem introduced a new electricity industry process called P272 in 2015, which took effect from 1st April 2017.
From that point onwards, business energy bills are calculated in a different way.
Instead of an annual reading, the electricity meter automatically sends a reading every half an hour, meaning energy suppliers calculate bills based on 17,519 readings.
Companies with high energy consumption were required to use smart meters that provide HH measurement.
Business Energy Direct Managing Director Simon Askew said: “Once we had received the support of the DNO’s, we were confident that the customers with supplies which had been incorrectly allocated to the wrong supply profile class, prior to P272 changes taking effect, would be able to reverse the process and save thousands of pounds as a result.
“The recent announcement ensures that this can now take place. Some of our own customers have been obliged to pay as much as £4,000 per year extra, so Business Energy Direct look forward to being able to provide them with improved terms in future.”