P272 – Information on regulatory changes for business customers

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This leaflet contains a detailed explanation of the new regulatory requirements, sometimes referred to as P272, that will come into effect on the 5th November 2015. This will change how the energy sector will collate and settle your business’ billing data. This leaflet provides further detail of how these regulatory changes will affect your business energy account and highlights some of the account requirements that will need to be in place, so we can help to facilitate this change for you.

Contents: Overview of the Market Changes

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Why is my business affected by this change?

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How and when will this change affect my business?

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Your Energy Account Requirements – Key Changes

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Agent Services

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Renewal Product Options

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Explanation of Your Bill Charges

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Contact Us

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Overview of the Market Changes The new P272 regulatory changes 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 you the benefit of a more detailed view of your business energy costs as we retrieve your energy data from your site on a half hourly basis.

As a business energy customer you should already have had an AMR meter installed, but don’t worry if you haven’t, contact us (details set out on page 11) and we’ll arrange for the correct meter to be installed at your site(s). The implementation of P272 means businesses may have better visibility of their consumption. It also means that ScottishPower can now offer you new tariffs that could offer you lower prices for using energy at a time when it is less expensive. An overview of these new tariffs are on page 8 of this leaflet.

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Why is my business affected by this change?

How and when will this change affect my business?

Your business is affected by these changes as it is defined as having a 05-08 ‘Maximum Demand’ profile class. This is because of the type of metering you have installed. The “profile class” was agreed either by your business or when the electricity meter was initially installed at your premises.

If your business Electricity Contract is due for renewal before 5th November 2015, or if you have already renewed, then we will honor your existing contract terms and contact you before your next renewal date to discuss what will happen next. You do not currently have to take any action.

If you look at Page 3 of your ScottishPower energy bill you will see your supply number, which will be similar to this image:

If you are due to renew after 5th November 2015, we will contact you before your next renewal date regarding your product and tariff options, as these will change.

Profile Class

S

845

06 18

1000

We will also remind you if there are any actions you will need to take, prior to the start of your new half hourly metering contract.

500 2000

300

If you are not currently on fixed term contracted rates with us, please call us on 0800 027 7211 during the opening times on page 11 of this document to discuss your options.

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Your Energy Account Requirements - Key Changes At ScottishPower, it is important to us that we help you to manage your energy costs. To help you understand exactly what P272 means for you, we have highlighted some of the key requirements you will need to consider once the changes start to take effect on 5th November 2015. ScottishPower can help you manage these different elements if you wish – please contact us for more information.

Agent Services

Meter Operators

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 opposite.

A Meter Operator Provider (MOP) is responsible for the installation of your meter and for servicing the meter. ScottishPower’s default MOP is fully approved to operate in both the Half Hourly and the Non-Half Hourly markets. As above, if you do not provide information to us on any current MOP contract that you have, we will appoint a MOP for you.

All agent services should be in place before your renewal date. As your energy supplier, you must advise us of any agent services contracts you have in place (see Existing Agent Services for more detail). If you do not have agent services in place before your renewal date, we will appoint a MOP, DA and DC on your behalf. All MOPs, DAs and DCs must be approved by the regulatory industry bodies before they can provide you these services.

Please note that MOP services are chargeable and vary across providers. Data Collector A Data Collector (DC) is responsible for “dialling” your meter, retrieving the details of the energy consumption at your premises and providing this consumption data to your energy supplier so that your energy supplier can bill you on this actual consumption.

This regulatory change means that the providers for your agent services must now be approved to operate in the Half Hourly market, as your energy supply is currently a Non-Half Hourly market supply. As with your current contract, agent services continue to be chargeable.

ScottishPower’s default DC is fully approved to operate in both the Half Hourly and the NonHalf Hourly markets. If you do not advise us of any current DC contracts that you have, then ScottishPower will appoint one for you.

For any queries regarding agent services, please contact us (details set out on P11).

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 energy your site has used. Please note that DA services are chargeable and vary across providers. 6

Existing Agent Services

Metering

We are aware that some business customers have existing arrangements in place for specific agent services:

Most businesses now have an AMR meter installed, this will be converted remotely to a fully compliant Half Hourly (HH) meter through which we will obtain consumption readings every half hour directly. If you do not already have an AMR installed, or are unsure, please contact us:

• If you have made separate arrangements, it is important that you contact your agent service provider so that they can confirm that they are accredited to operate in the Half Hourly market

• 0800 027 7211, Monday to Friday between 9am and 4.45pm

• If they are accredited to operate in the Half Hourly market, and you wish that they continue to provide your metering services, please confirm this with us so that we can ensure this is continued

• [email protected] and if required, ScottishPower will arrange for the appropriate meter to be installed.

• Where you confirm to us that you have an existing contract in place, we also need you to clarify that the contract that you have with your service provider includes all agent service costs.

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Renewal Product Options If you are due to renew your contract with us after the 5th November 2015 we will write to you 60 days prior to your renewal date, as usual, to advise you of the new tariff options available for your business.

There will still be a fixed price option, as described opposite. A new tariff option has also been developed to help you take advantage of your advanced meter and the collection of half hourly data, should you wish to manage your energy usage more effectively. This is also described opposite.

Option 1: Simply Fixed has been designed for customers looking to fix their total energy costs over their contract term to obtain budget certainty and remove exposure to price volatility over the fixed term of their contract.

See opposite for the options available to you. In addition to this, we can also offer a fixed unit energy cost for the duration of your contract, with full pass through of specified 3rd party industry charges which will be itemised on your bill (3rd party industry charges are detailed on the following page).

Option 2: Control also allows customers to fix their total energy costs over their contract term, but in addition to this, lets customers manage their peak demand using a tariff structure based on varying time bands throughout the day.

Please contact us if you wish to discuss this type of contract in more detail.

Control aligns your unit rates to Red, Amber and Green time bands and offers you the opportunity to manage your consumption profile by moving elements of your consumption out of the Red or Amber charging period which are more expensive and into the Green period which is a cheaper period. If you have the ability to alter your consumption profile and are able to move some of your consumption into the Green period then this product is more suited to your needs and could assist you in saving on your energy costs.

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Explanation of Your Bill Charges Energy Costs

Renewables Obligation (RO)

This is the cost associated with the generation of Electricity for distribution around the country.

RO is a charge for supporting commercial scale renewable electricity projects in the UK.

Non-Energy Costs

Feed in Tariff scheme (FITs)

Every electricity customer’s bill includes a Use of System charge. This is broken down into two elements, which are detailed below:

1. Transmission Network Use of System Charge (TNUOS) This covers the cost of using the National Transmission System owned and operated by National Grid to deliver electricity from power stations into and across the transmission network. Your electricity supplier will repay this charge to National Grid on your behalf.

2. Distribution Use of System Charge (DUOS) The DUOS charge covers the cost of receiving electricity from the national transmission system and feeding it directly into homes and businesses through the regional distribution networks. These networks are operated by Distribution Network Operators (DNOs). The distribution networks include overhead lines and underground cables, as well as substations and transformers, which reduce the electricity’s voltage to safe levels for use in homes and businesses. There are other Non-Energy costs which are detailed opposite.

A charge for the government programme designed to promote the uptake of a range of small-scale renewable and low carbon electricity generation technologies.

Balancing Service Use of System (BSUoS) A charge for the day to day operation of the transmission system by National Grid.

Electricity Market Reform (EMR) The Government’s new initiative to incentivise low carbon generation and help meet the countries growing demand for energy use

Elexon Charges These cover Elexon’s costs for administering the wholesale electricity balancing and settlement arrangements and the associated documentation to comply with the Balancing and Settlement Code (BSC) for Great Britain.

Assistance for Areas with High Electricity Distribution Costs (AAHEDC) AAHEDC, previously referred to as the Hydro Levy, is a charge levied on all supply customers to subsidise the cost of distributing electricity in sparsely populated areas.

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Large Scale Generation

Power Station – 25kw

Generator/Transformer

TNUoS Charges

High Voltage transmission

400kw

DUoS Charges

Grid Supply Point

Low Voltage Distribution – 132kw

Transformer

275kw

Large Factories Heavy Industry

Medium Factories Light Industry

33kw

11kw

We want to help you through these regulatory changes and ensure your business is ready Please visit our website or contact us for more information: www.scottishpower.co.uk/P272 [email protected] 0800 027 7211 (Opening Hours: Monday to Friday, 9am – 4.45pm)

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Small Factories and Residential Areas

230v

www.scottishpower.co.uk/commercialenergy ScottishPower Energy Retail Ltd Cathcart Business Park, Spean Street, Glasgow, G44 4BE 12