Market News

​The latest information on industry changes

 

 

Compensation from RO, FIT and CFDCompensation from RO, FIT and CFD

Regulatory Update - Energy Intensive Industry scheme for compensation from Renewable Obligation (RO), Feed in Tariff (FiT) and Contracts for Difference (CFD).

What is the scheme?

This is a government compensation scheme, introduced to reduce the financial and competitive impact of renewables policies on electricity intensive industries. The consultation process began in 2014 and the scheme has now received full approval from the European Commission. On 26 January 2016, information for potential claimants was published by the Department for Business, Innovation and Skills (BIS).

Find out more - read our fact sheet here

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Electricity Market Reform (EMR)Electricity Market Reform (EMR)

What is Electricity Market Reform (EMR)?

EMR is a government policy to incentivise investment in
secure, low-carbon electricity. The aim is to deliver low carbon energy and reliable supplies that the UK needs, while minimising costs to consumers.

EMR introduces two key schemes to provide incentives for the investment required in our energy infrastructure - Contracts for Difference (CFD's) and the Capacity Market.

From 1st April 2015, additional items will be added to your bill to cover the costs associated with EMR.

Find out more - read our fact sheet here

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P305 - Electricity RegulationP305 - Electricity Regulation

What is the P305 regulation? 

The P305 regulation was introduced by Ofgem on 5 November 2015, following recommendations and feedback from National Grid’s EBSCR (Electricity Balancing Significant Code Review). The EBSCR is a long running project, designed to assess the effect of cash-out pricing on the wider market and future supply. P305 follows the P316 consultation, which was closed earlier this year.

​Find out more - read our fact sheet here 

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P272 - Electricity RegulationP272 - Electricity Regulation

P272 is a compulsory, industry-wide change introduced by Ofgem. It follows on from the April 2014 roll-out of AMR (Automated Meter Reading) for all meters in profile class 5-8. These profile classes include commercial meters with variable peak load weighting. 

Read more about load profiles and their use in electricity settlement

The AMR programme made sure that meters within this category could be read remotely and could record half-hourly (HH) consumption. Now that this has been completed, P272 requires suppliers to use this half-hourly data to settle consumption accurately on a half-hourly basis. As a result, invoices will reflect your half-hourly consumption, rather than an assumed profile.

How do I know if my meter is in profile class 5-8?

The profile class can be found on your invoice. It appears as below, in the first left hand box, on the top row of the your supply number. 
 

When is it happening?

• Suppliers must complete the transition from non-half-hourly to half-hourly settlements by April 2017. However, if your contract is renewed between 29th October 2014 and 4th November 2015, the transition must be completed by 1st April 2016.

 • For existing customers, suppliers must complete the transition from non-half-hourly to half-hourly settlement as part of your contract renewal. We can then offer you the product best suited to your requirements. 
 • If your contract renewal date is after April 2017, suppliers are required to carry out this transition mid-contract.

 • For new customers, suppliers must complete the transition within 45 days of the supply start date. This includes the registration of new sites for existing customers.


What do I need to do?

If you already have a direct half-hourly contract with a meter operator and/or a data collector/data aggregator, you can extend this to your 5-8 meters.

Please agree terms with your agents, and let us know when this has been done. We can then review your contract terms, and liaise with your agents to initiate the transition.

If you do not inform us that you have made arrangements with an agent, we will appoint one on your behalf and pass associated costs to you. These will appear on your monthly invoice.

To help facilitate this transition, please make sure your AMR meters are capable of being read remotely and recording half-hourly consumption. If you are aware of any issues with AMR on any of your meters, please let us know as soon as possible.

If you would like to benefit from receiving half-hourly charges sooner than your renewal date, this can be arranged. Please contact us to let us know.


What will happen next?

Once the half-hourly agents have been appointed, your meter will be remotely reconfigured to a fully compliant half-hourly meter. We will obtain consumption readings for every half-hourly period (from the data collector) and these same readings will be used for settlement. If the remote reconfiguration is unsuccessful, a site visit may be required and you will be contacted to arrange a suitable date and time to access your meter.

Following the switch to half-hourly settlement, you will notice that your electricity invoice looks slightly different. It will include additional lines of data and some charges will be based on your half-hourly consumption. We will provide information with your first invoice to explain the changes.

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