Half hourly business electricity meters explained

What are the benefits of half hourly meters?

Half hourly meters are designed to capture details about a business's electricity usage every 30 minutes, relaying the information to the supplier in real time.

This means that suppliers can ensure they're accurately charging firms when generating their bills, while benefitting businesses with high usage because there's a minimised risk of incorrect charges.

Business energy customers generally benefit because they can have their contracts flexibly tailored to their unique usage. They can opt for either complete budget certainty with set prices, or allow a supplier to pass charges through to them on a variable basis.

Which businesses can get half hourly meters?

Half hourly meters are most common for businesses that use energy more heavily than most. If your business has a peak electricity demand of 100 KVA or higher, more than three times a year, then you'll be obligated to have one of these meters installed.

However, some businesses also inherit them or are obliged to use them because of how the site is set up, rather than because they chose one - for instance, the site might have previously had higher demand or been part of a multi-occupancy premises.

How do half hourly meters work?

The meter measures how much energy is being used every half hour so the supplier can accurately calculate bills. The readings are sent automatically to the supplier, so the business doesn't have to do anything.

It's worth noting that half hourly meters do require a phone line or internet connection to send usage details to a supplier regularly.

What affects half hourly meter electricity prices?

There are several factors that can affect the price of your half hourly electricity bill.

• Wholesale electricity prices - the higher the price your supplier pays on the wholesale market, the higher the price will be by the time it reaches your business.
• Your contract terms - each electricity supplier has their own way of negotiating contracts, but generally, the longer your contract term, the cheaper your rates will be. However, it should come down to what works for your business.
• The location of your business - electricity rates can vary right across the UK, but business location isn't something that many businesses can be flexible with.
• Time of year (the TRIAD period) - the TRIAD is three peak electricity usage periods when the National Grid anticipates overall demand to be at its highest. Your electricity supplier should offer a TRIAD warning service to let you know when to expect these periods to occur as they will give you your most expensive rates.

Why half hourly electricity sometimes looks more expensive

Ultimately the price of the energy will be the same regardless of the metering system. However, you may pay additional metering and data charges which can increase costs (though not excessively). And as always, the more you use, the more you pay.

What to check if your bill looks too high

• Your usage - has it gone up or stayed the same?
• The billing dates if you've recently taken over - are you being charged for the right period?
• Your unit rate and standing charge - do they match what you should be paying?

Does my business have a half hourly meter?

If you've currently got a half hourly meter this is something you're probably aware of. You’ve either been told by your supplier that you need one, or have been asked to have one installed.

However, some businesses move into premises without realising that they've got an half hourly meter. The easiest way to check if you have one is to see if your supply number (S number) begins with '00'. The supply number can be found on your energy bill.

How do I save money with a half hourly meter?

The main benefit of half hour electricity metering is a lot more data about your company's energy usage.

This can help you save money in the following ways:

1. If you decide to switch to a new electricity supplier, it's far easier to compare contracts and prices as you'll have accurate data about your energy usage.
2. With your electricity usage data, you can start to shift some of your business's most energy-intensive work to periods when rates are lower.

Can I remove or downgrade a half hourly meter?

You may be able to swap your half hourly meter for a regular meter, but it's unlikely.

It might be possible if:

• The amount of energy you regularly use has significantly dropped
• Your business's set-up isn't tied to complex metering or site requirements
• A change can be made without major site work.

However, Ofgem is pushing for all businesses to adopt half hourly meters by 2027, so most suppliers have a blanket policy of not downgrading from half hourly meters if businesses already have them.

It's worth asking your supplier if you want to downgrade, but be aware that they might refuse.

Can I switch my half hourly meter tariff for cheaper rates?

Yes. Businesses with an electricity demand of 70kW or more can switch their supplier and tariff as a means of getting a cheaper deal for their electricity.

It's recommended to use a broker to help switch energy supplier. That's because businesses that consume high levels of electricity are often expected to negotiate deals with suppliers on a case by case basis, which can be difficult for business owners who haven't had a lot of experience in the industrial electricity market.

A broker will be able to get prices from a wide panel of suppliers on your behalf, negotiating a deal that lowers the cost of your business's energy bills while keeping the benefits of a half hourly meter.

Brokers will also be able to process any paperwork and handle the administrative side of the negotiations to make the switch as easy as possible. That way, businesses can focus on what matters to them.