Download What is P272? The new P272 regulation rules require that energy

What is P272?
The new P272 regulation rules require that energy suppliers use more detailed energy use data, known as half-hourly
(HH) consumption data, to calculate customer’s bills using advanced Automatic Meter Reading (AMR) meters. For those
customers who already have AMR meters installed, these meters will be utilised and converted into fully compliant Half
Hourly meters (HH) automatically. This conversion to half-hourly metering will give business customers the benefit of a
more detailed view of their business energy costs as we retrieve their energy data from their site on a half hourly basis.
The implementation of P272 means businesses may have better visibility of their own consumption. This means that
ScottishPower can offer business customers new products and services, including tariffs that could offer lower prices
for using energy at a time when it is less expensive. An overview of these new tariffs can be found below.
If a business Electricity Contract is due for renewal before 5th November 2015, or it has already been renewed, then we
will honour the existing contract terms and contact the customer before their next renewal date to discuss what will
happen next.
If a business Electricity Contract is due to renew after 5th November 2015, we will contact the customer before their
next renewal date regarding their product and tariff options, as these will change.
ScottishPower & P272
Operationally, all areas of the business have been working closely together to adapt, enhance and modify our systems to
ensure they are fit for purpose to commence the P272 implementation on 5th November 2015.
Highlights include:
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Engaged in the regulatory design and progression of P322 to reduce risk and customer impact of P272
implementation.
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Key stakeholder engagement, liaising with all relevant third parties and external metering agencies.
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Upgrades and system changes to our billing and registration systems to allow for appropriate Registration, Flow Management and Billing of P272 sites.
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Improved Change of Measurement Class (COMC) process.
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Developed and enhanced product suite for all impacted consumer’s to promote choice and reduce impact of the change for the consumer.
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Piloted P272 implementation with one of our key strategic customers.
Our Sales & Pricing Strategy
Renewal Strategy for Existing AMR Customers
We will be renewing customers with contract end dates between now and 4th November 2015 as normal, however no
contract end dates will be priced past November 1st 2017.
All customers who have been renewed or are due for renewal before 5th November 2015 will have the full terms and
duration of their existing contract honoured. We will then contact these customers prior to their contract end date to
advise them of their renewal options and what happens next.
For our customers due for renewal after 5th November2015, we will be contacting them prior to their renewal date
with a P272 Introduction Letter and a P272 Education Letter. All of which will outline the changes, the impacts and what
product and tariff options the customer has. After their renewal point, half-hourly consumption data will be used to
calculate usage on these customers’ invoices.
ScottishPower Energy Retail Limited, Commercial Energy, Section 11, Cathcart Business Park, Glasgow G44 4BE
Telephone 0800 074 0025 (3rd Party Sales), 0800 074 0052 (Customer Direct)
www.scottishpower.co.uk/largebusiness
Scottish Power Generation Holdings Limited Registered Office: Cathcart Business Park, Spean Street, Glasgow G44 4BE Registered in Scotland No. SC389556 VAT No.: GB659 3720 08
ScottishPower Energy Retail Limited Registered Office: 1 Atlantic Quay, Robertson Street, Glasgow G2 8SP Registered in Scotland No. SC190287 VAT No.: GB659 3720 08
Renewal Strategy for Existing Non AMR Customers
12 month NHH contracts are only to be offered to customers renewing between September 2015 and up to and
inclusive of February 2016 and within the specific requirements below.
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Customer must provide written consent to AMR install.
Contractual renewals occurring after February 2016 are subject to depreciating contract offer lengths with a end date of
no greater than February 2017.
Acquisitions Strategy for AMR customers
For all previously agreed NHH acquisitions ScottishPower will honour these contract terms and durations.
For any new NHH customers with contract start dates from September 2015 to November 4th 2015 ScottishPower will
provide NHH offers but will not offer contract durations beyond February 2017.
For any new NHH customers with contract start dates beyond 4th November ScottishPower aim to be in a position to
provide HH offers in early October 2015 (date tbc).
Acquisition Strategy for Non AMR Customers
We will still offer NHH contracts to new NON AMR customers however no contract lengths or end dates greater than
February 2017, within the specific requirements below.
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Written consent to immediate AMR install
Annualised consumption = or > 150,000KWh
What we need from you
To enable ScottishPower to accurately tender for your clients’ business we do ask that you meet the following
requirements with your tender requests.
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An up to date letter of authority (LOA)
Half Hourly Data should be provided
Valid MOP contract must be in place (We may ask to see this)
With a valid Letter Of Authority, negotiations can be made for customers due for renewal after 5th November 2015 up to
the contract expiry date. However, 68 days prior to the contract expiry date, the customer will receive a direct renewal
offer from ScottishPower with our standard contract prices. ScottishPower aim to be in a position to provide HH offers in
early October 2015 (date tbc).
Agent Services
There are specific agent services which are a requirement for all half hourly customers – these include a Meter
Operator Provider (MOP), a Data Aggregator (DA) and a Data Collector (DC), all of which are outlined in more detail below.
All MOPs, DAs and DCs must be approved by the regulatory industry bodies before they can provide these services.
This regulatory change means that the providers for agent services must now be approved to operate in the Half Hourly
market, as these customers’ energy supply is currently a Non Half Hourly market supply.
All agent services should be in place before a customer’s renewal date. As their energy supplier, they must advise us of
any agent services contracts they have in place. If they do not have agent services in place before their renewal date, we
will appoint a MOP, DA and DC on their behalf.
As with current contracts, agent services will continue to be chargeable.
Meter Operators
A Meter Operator Provider (MOP) is responsible for the installation of the meter and for servicing the meter.
ScottishPower’s default MOP is fully approved to operate in both the Half Hourly and Non-Half Hourly markets. As
above, if a customer does not provide information to us on any current MOP contract that they have, we will appoint a
MOP for them.
Please note that MOP services are chargeable and vary across providers.
Data Collector
A Data Collector (DC) is responsible for “dialling” the meter, retrieving the details of the energy consumption at a
business premise and providing this consumption data to the energy supplier so that the energy supplier can bill on this
actual consumption. ScottishPower’s default DC is also fully approved to operate in both the Half Hourly and Non-Half
Hourly markets. If a customer does not advise us of any current DC contracts that they have, then ScottishPower will
appoint one for them.
Please note that DC services are chargeable and vary across providers.
Data Aggregator
A Data Aggregator (DA) is appointed by an energy supplier to take the meter information from the DC and work out the
cost of the power a site has used.
Please note that DA services are chargeable and vary across providers.
Contacting Our Customers
ScottishPower will mail all impacted customers depending on their renewal date, prior to their P272 migration as
outlined below.
1.
Introduction Letter
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Overview of the market changes - P272 Project
ScottishPower approach to P272
2.
Educational Letter
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Further overview of the market changes
What businesses are affected by this change
How and when this change will affect businesses
Energy account requirements and key changes
Agent services
Renewal product options
Explanation of bill charges
Our New Products
There will still be a fixed price option, Option 1 described below. A new tariff, option 2, has been developed to help
customers take advantage of their advanced meter and the collection of half hourly data, should they wish to manage
their energy usage more effectively.
Option 1: this product has been designed for customers looking to fix their total energy costs to obtain budget certainty
and remove exposure to price volatility over the fixed term of their contract.
Option 2: this product also allows customers to fix their total energy costs, but in addition to this, lets customers
manage their peak demand using a tariff structure based on varying time bands throughout the day. This product aligns
unit rates to Red, Amber and Green distribution time bands and offers the opportunity to manage a consumption profile
by moving elements of your consumption out of the Red or Amber charging period into the Green period. If a business
customer has the ability to alter their consumption profile and are able to move some of their consumption into the
Green period then this product is more suited to their needs and could assist them in saving on energy costs.
In addition to Option 1 and Option 2, we can also offer a fixed unit energy cost for the duration of a contract, with full
pass through of specified 3rd party industry charges which will be itemised on the bill. Please contact us if you wish to
discuss this type of contract in more detail.
Frequently asked questions
What if an existing customer requires an AMR to be installed?
If a customer contacts us and advises that they don’t have an AMR installed (or a MOP Contract), we would appoint SPOW
MOP and make arrangements to install an AMR.
Will the new products be available to current HH customers?
Yes the 2 “new” products will be added to our existing suite of products and will be available to all HH customers in
October 2015.
How to Contact Us
SCP5458 SEP 15
[email protected]
0800 0740 025