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The introduction of half hourly metering will be the “biggest chance” for uptake of energy efficiency amongst business electricity users by causing a sharp price increase, according to business electricity supplier Haven Power's chief executive.
Haven Power’s chief executive Peter Bennell, speaking at a consultancy conference this week said the introduction of mandatory half-hourly meter reading in April 2016 for mid-sized non-domestic customers by Ofgem would force inevitable “losers” facing “very substantial” increases to embrace energy efficiency as a way of reducing costs under the legislation.
Bennell said: “There are going to be winners and losers, half the customers are going to see cheaper power on average, half are going to see more expensive. Some customers are going to see very substantial increases, and some will see very substantial decreases and as this comes through this will start to strengthen the signals for those that are using power in the most expensive possible way.“
Ofgem legislation P272 requires all maximum demand meters within profile class 5-8 which have an automatic meter reading meter fitted to be settled on actual half hourly consumption data.
Bennell said a “wave of apathy” from “all sort of electricity users” was preventing “shed loads of opportunity” already available being taken advantage of, but that the introduction of P272 might be “the point when people start taking an interest.”
“At the moment you can save a massive proportion by moving the time of day around a bit. Cost savings on stuff that can be moved around can be 40, 50, 60, 70 percent, are quite accessible now. P272 doesn’t stop you doing this now, this is going to force it to happen. Make sure you’re a winner, and if you’re a loser your incentive to do something is going to be bigger.”
However Bennell was cautious about the limitations of time of use tariffs saying: “I think as people start to move things around, people will follow the movement, and the price will follow the movement as well.”
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