If you’ve ever dealt with business electricity contracts, you may have come across the term P272. While it might sound like a cryptic code, it’s actually an important industry regulation that affects how certain UK businesses are billed for their electricity. In this guide, we’ll break it down in simple terms so you know exactly what P272 means, why it was introduced, and how it impacts your energy bills.
Understanding P272
P272 is a mandatory industry change introduced by Ofgem (the UK’s energy regulator) that came into effect in April 2017.
It required all profile class 05-08 non-half-hourly (NHH) electricity meters to be switched to half-hourly (HH) settlement.
This means that instead of your supplier estimating your electricity usage over long periods, they now receive accurate data every half hour via your advanced meter.
Why Was P272 Introduced?
The main reasons behind P272 were to:
- Improve accuracy in billing – so you’re charged for exactly what you use.
- Encourage energy efficiency – by giving businesses more detailed usage data.
- Support demand management – helping the UK manage peaks in electricity demand.
- Prepare for a smarter grid – paving the way for future smart technology.
How P272 Works in Practice
Before P272, many businesses had their electricity bills calculated on estimated data from NHH meters. Now, with half-hourly settlement:
- Your meter automatically sends half-hourly usage data to your supplier.
- Bills are based on real consumption patterns, not estimates.
- Time-of-use pricing becomes more relevant — you can benefit from off-peak rates.
Who is Affected by P272?
P272 applies to businesses with:
- Profile classes 05-08 (you can find your profile class on your electricity bill).
- An Advanced Meter capable of sending half-hourly data.
If your business falls into this category, you’ll already be on half-hourly settlement — either through the P272 rollout or as part of a new contract.
Benefits of P272 for Businesses
- Greater Billing Accuracy – No more large estimated bills or surprises.
- Better Energy Insights – You can see exactly when and how your energy is used.
- Potential Cost Savings – Shift usage to off-peak times to reduce costs.
- Supports Sustainability Goals – Easier to track and reduce carbon footprint.
Challenges to Consider
While P272 has benefits, it also means:
- You may face different pricing at peak times.
- Data management is important — your half-hourly data can be extensive.
- Businesses need to be proactive in analysing their usage to save money.
How Scalex Technology Can Help
At Scalex Technology, we specialise in energy management solutions for UK businesses. We can:
- Analyse your half-hourly data.
- Recommend energy-saving strategies.
- Help you choose the right contract for your usage pattern.
P272 Eligibility Checker
Enter your electricity profile class to see if P272 applies to your business.
Key Takeaway
P272 might sound technical, but it’s essentially about making business electricity billing smarter, fairer, and more efficient. If you’re on a profile class 05-08 meter, understanding your half-hourly data is key to reducing costs.
💡 Tip: If you’re not sure whether P272 affects you or want to explore cheaper energy tariffs based on your usage, speak to Scalex Technology today.
