Business Energy Solutions Tailored for the UK Market
Business energy savings have become crucial with rising electricity rates in UK. For larger organisations, an electricity bill is much more than the cost of units consumed. It often includes hidden costs such as VAT, Climate Change Levy (CCL), standing charges, and an often-overlooked element, MOP contracts. For businesses operating energy intensive facilities such as hotels, data centres or other large commercial premises, understanding and managing MOP contracts can be a tactical way to cut down operational expenses.
In this article we will cover the mysteries of MOP contracts, explain who would require them, how this impacts your bills and most importantly, business energy savings can be easily achieved by optimising them. With the current high market rates and margin squeeze that businesses are experiencing, getting your energy contacts right matters now more than ever.
MOP Contract- An Overview
A Meter Operator Contract (MOP) is essentially a legal requirement for businesses with a half-hourly (HH) electricity meter. It is an essential business electricity contract and the Meter Operator is responsible for everything associated with installation, maintenance, and the communication of consumption data from a half-hourly meter to the supplier and the national grid (the two parties that rely on consumption data).
Half-hourly meters communicate with suppliers every 30 minutes, so they can bill based on actual rather than estimated usage. The meter operator contract typically has a five-year duration, with the utility companies often being responsible for the installation and maintenance of their advanced metering systems. Businesses have the option of procuring the MOP contract either directly or via their electricity supplier.
MOP Contract- The Who and Why?
If your business’s maximum electricity demand is more than 100 kW, you must have a half-hourly settlement meter and a MOP (Meter Operator’s Agreement or contract) in the UK. This applies to large businesses