Electricity profile classes explained: PC1 to PC8 and what yours means

An electricity profile class is a number from 1 to 8 that places your meter in a group for settlement and billing. Profile class 1 and 2 are domestic. Profile class 3 and 4 are the ordinary non-domestic groups most small businesses fall into. Classes 5 to 8 are larger "maximum demand" sites. Your class is the first two digits of your MPAN.

The eight classes at a glance

Class	Who	Meter arrangement
1	Domestic	Unrestricted (single rate)
2	Domestic	Economy 7 (day and night rates)
3	Non-domestic	Unrestricted (single rate)
4	Non-domestic	Economy 7 (day and night rates)
5	Non-domestic maximum demand	Load factor below 20%
6	Non-domestic maximum demand	Load factor 20% to 30%
7	Non-domestic maximum demand	Load factor 30% to 40%
8	Non-domestic maximum demand	Load factor above 40%

This follows Elexon's published description. Separately, a profile class of 00 is used for sites settled half-hourly.

What a "profile" is

Elexon, which runs electricity settlement, says each profile class is a group of customers whose use can be reasonably approximated by one typical pattern, built from half-hourly meters at sample sites. If your meter only records total kWh, the market estimates your half-hour-by-half-hour use by applying that class pattern to your annual figure. So the class affects how your supplier is charged for the energy it buys on your behalf, which is a cost it may or may not pass on to you.

Profile classes 3 and 4: most small businesses

Class 3 means a single-rate meter. Class 4 means a meter with a day and a night register, so you see two unit rates; see day and night rates. If you run a night-time process, such as a bakery's ovens, class 4 may suit you; if you mostly use power in the day, it may cost more. Check before agreeing a quote that moves you between them.

Profile classes 5 to 8: larger sites

These customers have meters that record maximum demand, the highest rate at which you drew power. The class is set by load factor: your actual use compared with the use you would have if you drew your maximum all the time. The lower the load factor, the spikier your use. Under market rule P272, which Ofgem approved in October 2014, sites in classes 5 to 8 are settled on actual half-hourly data. See half-hourly meters explained.

Worked example: working out a load factor

A small manufacturer used 200,000 kWh last year and its highest demand was 90 kW.

1. Hours in a year: 365 × 24 = 8,760.
2. Use if it ran at maximum all year: 90 × 8,760 = 788,400 kWh.
3. Load factor: 200,000 ÷ 788,400 = 25.4%.

That falls in the 20% to 30% band, so profile class 6. Had it used 350,000 kWh with the same peak, its load factor would be 350,000 ÷ 788,400 = 44.4%, so class 8. Note that suppliers must recalculate load factors for class 5 to 8 customers and reallocate them when necessary, per Elexon's procedure BSCP516.

Why your class matters in practice

• Smart or advanced meter rules. The government's supplier obligations apply smart meter rules to classes 1 to 4, and advanced meter rules to classes 5 to 8 and 00. See business smart meters.
• Bill structure. Larger classes often pay for capacity and see more separate lines. Our guide to supply capacity and kVA charges explains them.
• Quotes. Quoting from the wrong class gives the wrong price. See what you need for a quote.
• Microbusiness status. This depends on use and size, not class, though a class 5 to 8 site is unlikely to be small. See what is a microbusiness.

How to find yours

1. Find the MPAN grid on a bill (see find your MPAN and MPRN).
2. Read the first two digits of the top row.
3. Match them to the table above.

The direct answer for you: which profile class is my business?

Can the class change?

Yes. A supplier can reallocate you, for example if you fit a day-night meter, install a half-hourly meter or grow. Sites can also appear as 00 when moved to half-hourly settlement, as part of market-wide half-hourly settlement. If you think your class is wrong, ask your supplier for the basis and see whether the meter itself, not just the label, has changed. Your supplier chooses the class, so incorrect allocation is a billing issue you can raise as a complaint.

Common questions

I run a business from home. Am I class 1 or 3?

It depends on whether the supply is a business supply. A domestic supply stays class 1 or 2 even if you work there, but the tax treatment can differ. See do I need business energy if I work from home.

My building has two meters, one single-rate and one on Economy 7. Are they different classes?

Yes. Each meter point has its own MPAN and its own class, so a premises can mix class 3 and class 4 supplies. Each one is quoted and billed on its own terms, which is worth knowing when you switch several supplies together.

Does a higher class mean a higher price?

Not automatically, and there is no published rule linking a class to a price. Suppliers set prices from their own costs, your region, your contract and your risk, and settlement costs differ by class, so ask any supplier quoting you whether your class affects its price. What the class reliably changes is how your bill is structured and which metering rules apply.

What does the load factor tell me about my business?

A low load factor means brief heavy bursts of use: you may be paying for capacity you rarely use. A high one means steady use throughout the day and night. Either figure helps you decide whether to talk to a network operator about your capacity, or to look at saving energy in a small business.

Next steps

1. Read your two class digits.
2. Check the meter type matches (single rate, two rates, or maximum demand).
3. If class 5 to 8, calculate your load factor yearly and make sure the class still fits.
4. Give the class when you request quotes.