THERE is a revolution taking place and your business is at the heart of it, but we would forgive you if you hadn’t noticed.
Since November 2015, the energy industry, has been on an ambitious mission to migrate around 175,000 Non-Half Hourly (NHH), maximum demand (MD), supplies to Half Hourly (HH) by April 2017.
Once completed, this will have a major impact on how your energy gets charged.
Currently the majority of businesses fall under the title (NHH), which means that their electricity charges are based on average profiles.
One inherent drawback of this approach is that it masks the actual consumption behaviour of the individual company which causes a lack of accuracy.
This makes it difficult for companies to gain the full impact of energy-efficient measures, make savings and it can affect the pricing of new contracts.
The Revolution
This is where the migration to (HH), also known as P272 comes in the aim of which is to capture the consumption specific data of individual sites.
Once migrated, companies can accurately determine what they use and when they use it.
Such a revolutionary step will have multiple benefits, one of which will be accurate demand forecasting for suppliers which helps ensure the lights stay on during winter.
For companies, the benefits are greater, as billing becomes reflective of actual consumption and an understanding of use versus cost allows you to negotiate more reflective contracts.
Invoicing should also be more accurate.
Ultimately this will help improve efficiency and increase savings.
The Reality
Unfortunately with an estimated 90% of companies still to be migrated in less than eight months, the industry is far from making this a reality.
For those companies that are NHH this means losing out on savings and prolonged disruption of their data.
The main reason behind this lack of progress is that the scale of the project was vastly underestimated by the parties involved who, through a lack of planning, IT investment, experience and communication have failed to rise to the challenge.
The Solution
It falls to NHH, MD, customers to take control of the situation and push their suppliers to make the switch, especially as we are nearing October which is traditionally the contract renewal month.
Do nothing and companies will continue to go without accurate data and in some cases they will continue to spend more than they need to.
Act now and companies will gain accurate billing, be able to see the full benefits of implementing energy efficiencies, gain better renewal quotes, cut waste and make savings.
The choice is yours - “viva la revolution!”