P272 – Max Demand Meter Change – Save Money By Appointing A Cheaper Meter Operator

All sites with a meter profile of 05, 06, 07 or 08 must should have now moved to half-hourly metering.

Your new meter will take a meter reading every 30 minutes. This information will be stored on the meter and a Data Collector, known as a “DC” will come and collect it. They will pass this information onto the Meter Operator known simply as “MOP” and the MOP will analyse all this data and then send it to either you or your supplier.

You have to pay for this service. Either your supplier takes the cost and passes it onto you by way of your energy bill, thus your bill will be higher. Alternatively, you can shop around and get quotes from meter operating companies and data collectors and then pay them yourself.

The two are not equal!

What You Should Do

If you don’t do anything then your supplier will arrange their preferred Meter Operator and Data Collector for you. The market in this area is open and highly competitive – getting a contract sorted before your supplier goes ahead and agrees one for you can really loosen the blow to all this mess.

Should You Do Nothing..

If – by your deadline – you have not appointed a MOP, DC, your energy supplier will give the job to their preferred MOP, DC providers by default. This will initially be out of contract, and as such you are likely to pay inflated rates.

As there is a legal requirement for the MOP service to be contracted, their MOP will then contact you directly and ask you to sign. At this point you can of course negotiate, but without having searched the market for other providers, you are unlikely to secure the best value contract.

As DC services do not legally need to be contracted, it is likely that your energy supplier will simply charge you monthly for this. This will be out of contract and as such you are likely to be pay an inflated rate, as well as the energy supplier’s admin fees. What’s more, you won’t get access to your energy usage data – a service that is only offered under contract. This means you will miss out on crucial insight into how, when and where energy is used at your sites.

Will My Bills Rise?

Short Answer is Yes.

This government pushed change is not to save you money. It’s to make your billing accurate so the government, the energy suppliers, the national grid and all other people concerned can monitor when and how electricity is being used.

Electricity used at “peak times”, for example, the 5pm winter peak will be more expensive, you need to learn about this and avoid using electricity at the expensive times.

Should you choose to arrange the MOP and the DC yourself, then they will invoice you directly and it won’t show on your energy bills. You can use the information they send you to analyse how well your electricity management is. It may sound long and annoying, but in the long run getting your head around this will help.

I’ve tried to keep this simple so please feel free to jump on Google for a more detailed explanation.

Whats The Difference Between Level 1 & Level 2 Letter of Authority

Man Signing Contract

The Simple Explanation

Level 1 – The third party becomes your consultant, they do all the legwork, explain everything to you and you sign.

Level 2 – The third party become your deputy director and have all the power you have, they can agree contracts without your authorisation. You as the director can revoke the power at any time.

letter of authority hamed adefuwa

Interested In More Detail?

Talking about the differences in levels of authority is difficult but necessary. There are officially two types of letter of authority’s; level one & level two. Level one allows the third party mentioned in the document to request basic nonsensitive information from your current supplier, your contract end date, your usage and things similar to that. Level two permits the third party to sign new contracts on your behalf and change your billing address from your address to theirs. These are supposedly the two levels of authority you can grant but in reality, the lines are far more blurred than that.

Most brokers will add what they consider necessary to the letter. If a broker wants to sign you up quickly they’ll add only to request current contract information and to be able to terminate your current supply to the letter. This allows them to get you accurate prices and then switch/renew you as you please.

If however the broker, wishes to keep your business for a few years they’ll usually add things into the letter like, the permission to handle objections, change business information and even handle new contracts without the need for a signature.

Actions Available on Most LOA’s

  • Submit notice of termination
  • Request recent bills
  • Request current and renewal prices
  • Request terms and condition of supply

Warning

Signing a letter of authority without reading it is careless of you as a business owner or someone who’s been entrusted to look after this side of the business so please take five minutes to read things before you sign.

Beware of documents entitled “Level 1 Letter of Authority” when in actuality it’s a level 2. Don’t be duped – read the document and if you can, avoid signing them unless you genuinely are busy.