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Modification: P272

Mandatory Half Hourly Settlement for Profile Classes 5-8

Proposer: Colin Prestwich (Smartest Energy)

Current Phase: Awaiting Implementation

Lead Analyst: David Kemp

Category: Settlement

Implementation Date: 1 April 2017

Summary

Since 6 April 2014, all Meters within Profile Classes (PCs) 5-8 must be an ‘advanced’ Meter capable of being read remotely and recording Half Hourly (HH) consumption. However, there is no mandate to settle these HH capable Meters on a HH basis.

P272 proposes to make HH Settlement mandatory for all Metering Systems within PCs 5-8 (where capable metering has been installed), as the Proposer believes that the use of Non Half Hourly (NHH) data is not as accurate and masks individual customer behaviour.

Progression

Smartest Energy raised P272 on 20 May 2011. The Panel agreed to issue it for an Assessment Procedure by a Workgroup, during which P272 underwent an Industry Impact Assessment and two Workgroup Assessment Consultations. The Workgroup recommended that P272 should be rejected, and its Assessment Report was presented to the Panel at its meeting on 12 January 2012.

The Panel noted concerns from the Authority that there was difficulty in assessing the costs and benefits of P272, which in turn would make it difficult to make a determination on the Modification. The Panel agreed with this and noted that they would like to see more detailed analysis of the costs and benefits.

The Workgroup subsequently undertook a cost-benefit analysis for P272, during which two further consultations, on the costs and the benefits of P272, were issued in order to obtain further information from market participants. After completing its analysis, the Workgroup continued to recommend that P272 should be rejected, and its results and updated Assessment Report were presented to the Panel at its meeting on 8 November 2012.

The Panel initially recommended that P272 should be rejected, and issued P272 for its Report Phase Consultation. The Panel made its final recommendation that P272 should be rejected at its meeting on 13 December 2012.

As part of its consideration of P272, the Authority issued a Regulatory Impact Assessment, under which it noted a minded-to position to approve the Alternative Modification.

On 6 February 2014, the Authority directed the Panel to consult on a revised proposed Implementation Date for the P272 Alternative Modification. The Authority also recommended that the Panel defer this consultation until there was further clarity on the timetable for DCUSA Change Proposal (DCP) 179 ‘Amending the CDCM tariff structure’. The Panel noted this direction and agreed with the Authority’s recommendation at its meeting on 13 February 2014. It subsequently delayed its consultation until August 2014 once greater certainty around the implementation approach for DCP179 had been obtained. The Panel agreed a revised proposed Implementation Date at its meeting on 11 September 2014, which was issued to the Authority.

The Authority approved the P272 Alternative Modification on 29 October 2014 for implementation on 1 April 2016.

At its meeting on 12 February 2015, the Panel considered concerns from some participants with the approved Implementation Date. Following a consultation, it wrote to the Authority on 20 March 2015 requesting a 12-month extension to the Implementation Date. The Authority rejected this request on 20 April 2015.

As part of its recommendation that the P322 ‘Alternative Revised Implementation Arrangements for Mandatory Half Hourly Settlement for Profile Classes 5-8’ Alternative Modification should be approved, the Panel re-issued its request for a 12-month extension to the Implementation Date on 12 June 2015. Following its decision to approve the P322 Alternative Modification, the Authority approved a 12-month extension to the P272 Implementation Date on 24 June 2015.

P272 will be implemented on 1 April 2017.

Documents

P272 Extension Request Consultation  [727.5 Kb]
Document Date: 17 February 2015

P272 National Grid Direction Letter  [125.0 Kb]
Document Date: 30 October 2014

P272 Authority Decision  [171.0 Kb]
Document Date: 29 October 2014

P272 Final Modification Report  [2.8 Mb]
Document Date: 18 December 2012

P272 Report Phase Consultation  [2.7 Mb]
Document Date: 12 November 2012

P272 Second Assessment Consultation  [522.5 Kb]
Document Date: 4 November 2011

P272 Assessment Consultation  [930.6 Kb]
Document Date: 23 September 2011

P272 Industry Impact Assessment  [556.5 Kb]
Document Date: 22 July 2011