On the surface it means some extra services to pay for, and a change in the way electricity usage is charged. But there are opportunities for substantial financial savings which companies can’t afford to miss.
For profile classes 05 – 08, current energy costs are based on how much you use, but not when you use it. P272 changes all of that. It will make the cost of using electricity at certain times of day (typically between 4pm and 7pm on weekdays) much higher than at present, whilst costs at other times may be slightly lower.
This presents a crucial opportunity for companies to ‘switch things off’ during these peak times (so-called ‘red band periods), for substantial financial savings. This is called ‘demand side management’. One real life example of this is a major retail chain that switches off its store heating for an hour during red-band periods. It has made no difference to the comfort of staff or customers, but is saving the company around 5% of their electricity demand during those periods.
With P272 comes a new requirement (and cost) for a Meter Operator (MOP) to install, update and maintain your new half hourly meter, and a Data Collector (DC) to collect your energy usage, verify it and send it to your electricity supplier.
What many businesses don’t know is that the market for these two services is highly competitive – prices and service offers vary wildly. It pays to shop around for the best deal, and not simply to go with the default option that will be provided to you by your energy supplier if you do nothing.
Whilst the MOP service needs to be contracted by law, the DC service doesn’t. However big savings can be made by securing a contract for both.
For more information look at our guide on what to look for in a MOP/DC.
The best thing about half hourly metering is that firms won’t just know how much energy they are using; they can clearly see what time of day they are using the most. This means that they may be able to see what equipment or activities are the most energy intensive – enabling them to identify opportunities for technology upgrades that will lead to substantial cost reductions.
There are data collection services that can provide firms with truly detailed numbers on their energy usage. There are options for advanced, 24 hour online metering software. You could select a control hub that gives you cross facility trends every half hour.
For more information on the cost saving opportunities to consider when P272 comes into force, contact us.