Everything you need to know about P432

The way in which your electricity is metered is changing and your business could benefit from these changes, but you’ll need the right equipment in order to do so. This is coming through Elexon, the business that implements the processes to settle the payments between generators, suppliers and traders through the Balancing and Settlement Code.

What is P432?

The P432 Balancing and Settlement Code is a modification to how meter readings are taken that will ensure that all Current Transformer (CT) Advanced meters are settled half hourly for settlement and billing purposes. 

Why is P432 happening?

The integration of the P432 modification is happening as part of a comprehensive plan aimed at coordinating usage and capacity in the UK, while also enabling businesses to adhere to net-zero standards. The Ofgem statement on the matter explained (PDF): 

Currently, generators and suppliers trade electricity in the wholesale market in half-hourly periods, but most customers are settled on a ‘Non-Half-Hourly’ (NHH) basis, using consumption estimates based on profiles of average customers and meter readings. There can be considerable variances between these estimates and actual usage. 

Market-wide half-hourly Settlement (MHHS) will use smart meters to send accurate signals to suppliers about the cost of serving their customers throughout each day. This will place incentives on suppliers to offer new tariffs and products that encourage more flexible use of energy and help customers lower their bills. MHHS will, therefore, bring significant benefits to customers and wider society.

What Are the Advantages of the P432 Modification?

The implementation of the P432 modification is expected to incentivise suppliers to introduce new tariffs for small business customers aimed at promoting flexible energy usage and assisting customers in reducing their bills. The P432 modification is set to deliver significant benefits to customers. These benefits primarily stem from the optimisation of the infrastructure itself. 

P432 Timeframe

The timeframe for the implementation of this standard runs as follows:

1st April 2024

All new CT connections must be Half Hourly settled from this date. 

15th April 2024

P432 starts for all NHH (Non Half Hourly) CT meters.

March 2026

All NHH CT meters must be changed to HH by March 2026.

What Meters Are Affected by P432?

Non-Half-Hourly (NHH) CT meters must undergo a Change of Measurement Class to Half-Hourly by March 2026. In addition, any new CT connections from 1 April 2024 should be Half-Hourly (HH) settled. An estimated 50,000 CT Meters accounting for approximately 800–1500 GWh per year will be affected by P432. They will all move to HH Settlement using the Change of Measurement (CoMC) process. 

How Can You Identify if You Have a Half-hourly Meter?

A half-hourly is a business electricity meter that sends usage data to your energy supplier every half an hour. Check the Meter Point Administration Number (MPAN) on your electricity bill to identify if you have a half-hourly meter. If your profile class (the first two-digit number in the box to the immediate right of the ‘S’) is 00, then you have a Half Hourly Meter.

Will My Meter Need to Be Exchanged to Comply With P432?

Not necessarily. Most meters can be remotely reconfigured to start collecting as HH instead of NHH. But there’s plenty of time to make any changes that you may need to; contact your supplier if you have any queries after you’ve carried out your own checks. 

With changes such as these just around the corner, now could be the time for you to review your business energy contract. The way in which you are billed is changing, and it’s quite possible that without giving consideration to the changing nature of this market you could end up paying more for your energy than you need to. Switchpal can help you if it’s a change you’re interested in making. In an ever-changing marketplace, you could find that there are considerable benefits.