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Your electricity metre is about to become obsolete. Class 03 and Class 04 aren’t just billing categories—they’re fundamentally different ways to pay for energy, and businesses choosing wrong are haemorrhaging money. One locks you into flat rates whilst the other slashes costs for those willing to shift operations. With 2025 bringing mandatory changes, your current setup might already be working against you.
Profile Class 03 vs. 04: Which Do You Need?
If you’re running a small business and wondering which electricity metering profile fits your operation, you’re not alone—many business owners don’t realise their metre classification directly impacts how much they pay per kilowatt-hour.
Profile Class 03 works best if your business runs steadily throughout the day with consistent energy demand. You’ll pay a single rate regardless of when you use electricity, making budgeting straightforward. This simplicity means you can forecast your energy costs in pounds without worrying about time-based variations. By implementing energy management strategies, you can further optimise your consumption patterns to align with your billing structure.
Profile Class 03 offers steady businesses a single electricity rate, simplifying budgeting and cost forecasting without time-based rate variations.
Profile Class 04 suits you better if your operations concentrate during off-peak hours—like early mornings or nights. You’ll access Economy 7 pricing, meaning cheaper rates in pounds during specific periods. If your business naturally operates when energy demand is lower, you could see meaningful savings on your bills. Your profile class calculation is determined by dividing total electricity used in one billing period by the maximum demand, which helps identify which metering option suits your consumption pattern. Installing smart metres and sensors provides real-time visibility into when your peak consumption occurs, allowing you to make more informed decisions about your metering classification.
Check your MPAN (the number on your bill) to see which applies. The first two digits reveal your classification. If you’re unsure, contact your supplier for clarification—they’ll walk you through which profile matches your usage patterns and help you understand the cost implications for your business.
Single-Rate or Dual-Rate: Which Class Fits Your Usage?
Now that you’ve identified which profile class applies to your business, grasping how each one charges you for electricity becomes your next move.
Profile Class 03 uses single-rate metering—you’ll pay one consistent price per kWh regardless of when you consume energy. This straightforward approach works perfectly if your business runs steadily throughout the day without significant usage spikes.
Profile Class 04 employs dual-rate metering through Economy 7 systems. You’ll access cheaper rates during off-peak hours, typically nighttime periods, whilst paying premium rates during peak times. This structure rewards operational flexibility. Consider implementing real-time reporting to monitor when your business consumes the most energy during each rate period.
So when should you choose each option? Pick Class 03 if your consumption remains predictable and stable throughout the week. Go for Class 04 when you can shift energy-intensive tasks to cheaper off-peak windows. Pairing your rate selection with energy efficiency upgrades can amplify your cost savings across both profile classes. Your MPAN number will be essential when contacting your electricity supplier to confirm which profile class is currently assigned to your property.
Your actual usage patterns determine which option maximises your savings potential, so it’s worth tracking when your business typically draws the most power before making your decision.
Does Your Consumption Pattern Match Class 03 or 04?
Pinning down which profile class suits your business comes down to understanding how you actually use electricity throughout the day.
If your operations run consistently—same energy demand during mornings, afternoons, and evenings—you’re likely a Class 03 candidate. You’ll pay one flat rate regardless of when you flip the switch.
Now, if you’ve got flexibility in your schedule, Class 04 makes sense. You can shift energy-heavy tasks to nighttime when Economy 7 rates drop markedly.
Think shifting production runs, charging equipment, or running machinery during off-peak hours. This approach aligns with waste reduction strategies that help conserve resources and lower operational costs. Our smart HVAC systems and renewable energy options can further optimise your consumption patterns during peak and off-peak periods.
Here’s where it gets practical: Can you concentrate your consumption during cheaper periods? If yes, Class 04 saves you money.
If your workday demands consistent power throughout, Class 03 keeps things straightforward and predictable. Both profile classes will be required to transition to half-hourly metering under the new MHHS legislation from April 2025, ensuring more accurate billing and detailed consumption insights for your business.
Economy 7 Savings: Does Class 04 Benefit Your Business?
Economy 7 tariffs can open real savings for your business, but only if you’re willing to rethink when you actually use electricity. Your Class 04 meter measures peak and off-peak consumption separately, letting you capitalise on cheaper night rates.
Several factors determine whether you’ll actually benefit:
Night-shift operations work particularly well with Economy 7. Manufacturing facilities running overnight shifts maximise off-peak benefits markedly because they’re naturally using electricity when rates drop.
Refrigeration systems are another strong candidate. Continuous cooling equipment operates throughout the day and night anyway, so shifting that consumption to off-peak hours means genuine efficiency gains without changing your operations. Implementing real-time monitoring tools can help track how much of your refrigeration load actually runs during off-peak periods to confirm the financial benefit.
Data centres represent perhaps the best fit. Round-the-clock server farms exploit substantial night-time rate advantages simply because they never switch off. However, if your actual energy usage grows significantly, you may be required to upgrade to half-hourly metering under industry regulations.
The key threshold is consumption balance. Businesses shifting 60% or more of their usage to off-peak hours typically see genuine returns on Economy 7 tariffs. Anything less and the savings become marginal. Working with a transparent energy broker can help validate whether Economy 7 genuinely suits your consumption patterns before committing to a new contract.
Standard retail operations with typical business hours? You’ll likely see minimal savings because most of your consumption happens during peak times anyway. The real win happens when your operations naturally align with Economy 7’s cheaper evening windows. If your business doesn’t fit that pattern, you’re better served by standard tariffs.
Will Your Metre Transition to Half-Hourly Metering?
Whether your business runs night shifts or operates during standard hours, there’s another metering change coming that’ll affect how your energy bills get calculated.
You’re moving to half-hourly metering. This means your energy consumption gets measured in 30-minute intervals instead of estimated profiles. If you’ve got a Current Transformer (CT) Advanced metre, you’ll convert by March 2026. The industry-wide migration window runs May 2026 through May 2027, with final compliance by May 7, 2027. Yorkshire Gas and Power is offering support to help you navigate the administrative and procedural changes required for P432 modification requirements.
Here’s what changes: your bills calculate actual usage across every half-hour period, not assumptions. Settlement windows shrink from 14 months to four months. You won’t pay changeover costs—suppliers absorb those expenses. This transition enables comprehensive energy management solutions that help your business optimise consumption and reduce operational costs. Aligning your metering infrastructure with ISO standards ensures your energy data meets regulatory compliance requirements and supports documented procedures for reporting.
This shift positions your business for smarter energy management and potential savings between £1.6 billion and £4.5 billion across GB consumers by 2045.
