What Is Ofgem Regulation PF272?

If you're a UK business with a half-hourly meter or even considering upgrading your current setup, there’s one regulation that could quietly but significantly reshape how you manage and pay for your energy: Ofgem Regulation PF272.

While the name might sound technical or easy to overlook, PF272 has very real implications for your day-to-day operations. From the way you're billed to how you track, analyse, and optimise your energy usage, this regulation has changed the playing field for thousands of businesses across the UK.

It’s more than a compliance requirement; it’s a chance to gain control, increase transparency, and potentially reduce long-term costs. In this guide, we’ll break it all down in plain English: what PF272 is, who it affects, and how your business can turn this regulatory change into an opportunity for smarter, more cost-effective energy management.

What Is Ofgem Regulation PF272?

PF272 is a UK energy regulation introduced by Ofgem that requires businesses with electricity meters in Profile Classes 05–08 to transition from traditional non-half-hourly (NHH) settlement, which relies on estimated usage profiles, to half-hourly (HH) settlement, where actual energy consumption is recorded and billed in 30-minute intervals.

The Basics 

• Final implementation: April 2017
• Applies to: Electricity meters in Profile Classes 05–08
• Key change: Switch to automated half-hourly usage tracking and billing based on actual consumption

Before PF272, businesses were typically billed using estimates or profile averages. This could lead to overpaying, underpaying, or missing out on opportunities to shift usage and reduce costs.

Why Was PF272 Introduced? 

Under the previous system, many businesses were being charged based on industry-wide usage profiles, not their actual consumption. This led to inefficiencies, poor grid forecasting, and billing inaccuracies.

PF272 aims to:

• End reliance on estimated billing
• Help businesses take control of energy costs
• Support grid balancing and smarter national demand forecasting
• Create a fairer, data-driven energy system

The broader goal? Make the UK grid more resilient, reduce carbon emissions, and give businesses the tools to consume energy smarter.

Who Does PF272 Apply To? 

PF272 affects UK businesses with Advanced Meters (AMRs) in electricity Profile Classes 05–08. These typically include:

• Multi-site chains
• Hotels and event venues
• Light manufacturing facilities
• Warehouses and commercial kitchens
• Larger retailers

How to check if you're included:

• Look at your MPAN number (found on your energy bill). If the profile class is 05, 06, 07, or 08 and ends in “00”, you’re likely already on HH settlement.
• Alternatively, ask your supplier or broker for confirmation.

How PF272 Affects Businesses

PF272 brought more than just another layer of regulation; it opened the door to a smarter, more transparent way of managing energy. By shifting businesses to half-hourly settlement, it unlocked the potential for data-driven decision-making, greater contract flexibility, and meaningful energy cost savings.

Here’s how businesses are benefiting from this change:

1. Billing Accuracy 

With half-hourly meters, your charges reflect actual usage every 30 minutes, not generic assumptions.

• Fewer bill surprises
• Better reconciliation with finance teams
• Greater trust in supplier charges

2. Cost Management 

Real-time insights into when and how you use energy help you:

• Avoid using heavy equipment during peak hours
• Take advantage of off-peak tariffs
• Compare cost-saving strategies across locations

3. Energy Efficiency Opportunities 

With usage data available in granular detail, it’s easier to:

• Spot unnecessary energy drain (e.g., lights or HVAC left on overnight)
• Set benchmarks per department or location
• Justify investment in energy-efficient upgrades

4. Better Procurement and Negotiation 

Suppliers can offer custom energy contracts based on your actual demand profile.

• You might qualify for lower rates
• Brokers can negotiate better deals on your behalf using usage evidence
• Avoids one-size-fits-all pricing

5. More Transparency, Less Guesswork 

Your business can now plan better, budget better, and improve sustainability efforts with confidence.

P272 vs P322: What’s the Difference? 

While P272 and P322 are closely linked, they each played a distinct role in the rollout of half-hourly settlement across UK businesses.

• P272 was the regulation that formally required businesses in Profile Classes 05–08 to move from non-half-hourly (NHH) to half-hourly (HH) settlement, using actual 30-minute consumption data for billing.
• P322 outlined the implementation timeline and transitional process, ensuring that suppliers migrated affected businesses in a coordinated and timely manner.

Together, these two regulations worked hand-in-hand to ensure the industry-wide transition was not only mandatory but also structured, fair, and fully completed by April 2017, minimising disruption while maximising compliance.

Real-World Case Study: Retail Chain in Manchester 

A UK-based high-street retail chain with 40 outlets was migrated under PF272 in 2017. Initially, they experienced a 10% increase in costs due to underestimated evening usage.

However, within months, the energy manager used the new HH data to:

• Adjust lighting and heating schedules
• Shift refrigeration cycles to off-peak hours
• Consolidate equipment usage in quieter stores

The result? Annual savings of over £36,000, plus a new 3-year energy deal that aligned with their actual usage patterns.

PF272 turned what seemed like a regulatory burden into a strategic advantage.

How PF272 Supports Net Zero Goals 

This regulation isn’t just about fair billing; it's a key building block in the UK's journey to a low-carbon future.

• Encourages behavioural change by highlighting peak usage
• Prepares businesses for time-of-use tariffs
• Creates accountability with measurable consumption and emissions data
• Makes renewable integration easier with accurate demand forecasting

Tools That Help Businesses Use HH Data 

Don’t worry, interpreting half-hourly data doesn’t require a PhD. These tools simplify it:

• Supplier Portals – view daily/weekly usage trends
• Smart Meter Dashboards – identify cost spikes and off-peak opportunities
• Energy Management Software (EMS) – automate insights and reporting
• Broker Platforms – use your HH data to benchmark suppliers

Look for alerts, peak-use maps, and comparative performance features to help you act quickly.

How to Interpret HH Data for Savings 

Even basic interpretation can make a difference. Look for:

• Recurring spikes: Is your heating starting too early?
• Night-time base load: Are machines running when they shouldn’t?
• Weekend trends: Is unused equipment left running?

Once identified, these patterns can lead to quick wins like scheduling automation or minor operational tweaks, translating into significant long-term savings.

How PF272 Changed Energy Procurement in the UK 

Before PF272, many procurement decisions were made using averaged profiles or generalised usage forecasts. Now, energy contracts are more tailored.

Benefits include:

• Contracts aligned with actual risk profiles
• More competitive quotes due to transparent demand data
• Access to flexible contracts and time-of-use options
• Enhanced leverage when renegotiating or switching suppliers

Brokers now have a full picture of your consumption, giving you better deals, not just the cheapest headline rate.

Common Misconceptions About PF272 

Let’s clear a few things up:

• “It’s only for massive companies” – False. Thousands of SMEs were affected.
• “It always increases bills” – Not necessarily. It often reveals usage patterns you can act on to save.
• “It’s optional.” – It was mandatory for eligible profile classes.
• “I’ll lose control” – On the contrary, it gives you full control and visibility.

What to Do If You Haven’t Transitioned Yet 

Some businesses may still be operating under outdated contracts or may be unaware that they've been migrated to half-hourly (HH) settlement. In some cases, they might not even realise how their current billing structure affects their costs or that they have access to detailed usage data that could help them reduce spend and negotiate better deals.

Here’s what to do: 

• Check your MPAN and profile class
• Request an HH data report from your supplier
• Review your current tariff and renewal date
• Speak to a broker about better deals using your usage profile

Even if you’re already compliant, there's still room to optimise.

Post-P272: What Comes Next? 

PF272 was just the first phase. What lies ahead:

• Market-Wide Half-Hourly Settlement (MHHS) – Making HH standard for all customers, including households
• Dynamic Pricing Tariffs – Pricing that changes by the hour
• Load Flexibility Programmes – Incentives for businesses to shift usage away from peak hours

Being proactive now puts your business in a stronger position to benefit from these future changes.

Conclusion

Ofgem Regulation PF272 may have started as a technical change, but for UK businesses, it represents a major shift in how energy is billed, monitored, and optimised. By moving to half-hourly settlement, you gain not only billing accuracy but also powerful insights that can drive smarter decisions and long-term savings.

Whether you're already compliant or still unsure of your status, now is the time to take control. Leverage your data, review your contract, and explore smarter energy options that align with how you really operate.

Summary Points 

• Ofgem PF272 mandates HH billing for electricity meters in Profile Classes 05–08
• It improves billing accuracy and reveals actionable usage insights
• Smart businesses are using it to save money and plan energy strategies
• The regulation ties directly into the UK’s Net Zero goals
• More reforms like MHHS are coming. Stay ahead by acting now

Frequently Asked Questions

Q1: Does PF272 apply to small businesses?

A1: Only those with Profile Classes 05–08. Microbusinesses are usually exempt unless their energy use qualifies them.

Q2: How do I check my meter class?

A2: Review your energy bill or MPAN number. Contact your supplier if you're unsure.

Q3: Is there a cost to transition?

A3: There may be minor admin costs or metering upgrades, but these are often offset by long-term savings and better procurement terms.

Q4: Can I avoid the HH settlement?

A4: Not if you're in an applicable profile class. It’s mandatory and part of national regulation.

Q5: What’s the biggest benefit?

A5: Data visibility. Once you can see when and how you're using energy, cutting costs becomes much easier.