Modification to P272 Mandatory Half Hourly Settlement for Profile Classes 5-8

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Modification to P272 Mandatory Half Hourly Settlement for Profile Classes 5-8


Last year we posted changes to the Balancing and Settlement Code (BSC), the settlement process for larger non-domestic consumers would be based on actual rather than estimated half-hourly consumption.

Although Ofgem said it was minded to approve the introduction of the modification next year, it has now asked the Balancing and Settlement Code panel to consult on a revised date of between April and June 2016.

Smartest Energy raised P272 in May 2011. The original proposal (‘P272 Proposal’) would mandate that electricity consumers in Profile Classes 5-8 are settled using half-hourly (HH) consumption data from 1 April 2014. The BSC Panel established a workgroup to assess the impacts of P272. This workgroup recommended that 13 months and two weeks would be required to implement P272, such that, should Ofgem decide to approve P272 Proposal, it would need to do so on or before 14 February 2013.

The workgroup also developed an alternative proposal (‘P272 Alternative’). This is identical to P272 Proposal, except that it proposes implementation one year later on 1 April 2015.

The workgroup recommended the same implementation lead time, such that Ofgem would need to approve P272 Alternative on or before 13 February 2014.

By 2016, this modification will have taken five years to implement which some believe is unnecessarily long. 

The Authority approved the P272 Alternative Modification for implementation on 1 April 2016.

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Profile Class (PC)

The first two digits of a full MPAN reflect its profile class

00 Half-hourly supply (import and export)
01 Domestic Unrestricted
02 Domestic Economy 7
03 Non-Domestic Unrestricted
04 Non-Domestic Economy 7
05 Non-domestic, with MD recording capability and with LF less than or equal to 20%
06 Non-domestic, with MD recording capability and with LF less than or equal to 30% and greater than 20%
07 Non-domestic, with MD recording capability and with LF less than or equal to 40% and greater than 30%
08 Non-domestic, with MD recording capability and with LF greater than 40% (also all NHH export MSIDs)

What is a Non-half-hourly metered supply?

Supplies under 100kVA tend to be Non Half-Hourly (NHH) metered, using standard meters that are read manually, or meters that feature Automated Meter Reading (AMR) technology.

For non-half-hourly metered supplies, the NHHDC determines the consumption by calculating the advance (the difference between the last two meter reads, this is annualised to produce an annual advance (AA), this being the data the supplier will pay on).

The NHHDC is also responsible determining the estimated annual consumption (EAC), which is a forecast for a year ahead. The EAC is initially provided by the supplier, and thereafter forecast based on actual meter readings.

Data from the DC (EAC/ AA’s) is provided to the non half hourly data aggregator, which aggregates the individual values provided into a single figure split in a number of ways e.g. geographically, geographically & supplier or supplier. This aggregated data is then provided to the Central Systems, maintained by Elexon, to determine the value of energy which has been used by suppliers so that they are able to settle with the distribution network which generated the energy. The process is known as balancing and settlement and falls under the balancing and settlement code (BSC).

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