Smart Metering is on its way: But how will this affect businesses costs?

For thousands of businesses costs are likely to rise – for those with Non-Half-Hourly (NHH) metered supply, a change is soon to take place. For cost consulting firms, the change could prove a challenge – MDG Group are using years of experience in business cost management to help ensure clients don’t lose out with the shift. Ofgem has mandated that all NHH meters be upgraded to Half-Hourly (HH) meters, extending to around 20,000 NHH class PC 5-8 meters. Despite this, many businesses are still unaware of how this will affect them.

In a report by Npower it was found that more than 80% of businesses said they hadn’t heard of the change, with the greatest lack of awareness “among businesses with 500-plus staff”. This is a worrying statistic considering the switch to HH smart meters will mean increased energy costs for a high proportion of businesses. Energy cost is already the number one concern for 46% of businesses according to Smart Energy GB.

Trade association the Federation of Small Business (FSB) says: “The transition to a smart new energy market is a real necessity, but the process is a potential minefield for small businesses. The government must ensure they are offering sufficient support for all eventualities”. According to a report in utility week, the change will “likely increase the average energy bill by £230 a year”. In addition businesses will be obliged to appoint an accredited meter operator (MOP) and data collection (DC) agent.

The FSB says “It is imperative that these businesses are identified and transitioned to the new smart world in a considered way.” But the concern is that businesses will not be informed in time to adapt.

At MDG we endeavour to keep our clients fully informed well in advance of significant changes. We will continue to use our utility procurement expertise to source our customers the best prices on the market despite the industry change – leave the transition with us.