Business smart meters: rollout, your rights and what changes

Suppliers must offer smart meters to businesses, and from September 2027 new fixed-term contracts will require them.

Last reviewed · By the Biz Energy editorial team · How we check facts

Smart meters for businesses are being installed across Great Britain, but as of November 2026 there is no general law forcing a small business to accept one today. What changes is that suppliers must offer them, and from 1 September 2027 new fixed-term contracts must include a smart or advanced meter term. This guide covers what is happening, your rights, and what a smart meter does to your billing.

Where the rollout stands

The government says smart meters are being rolled out to around three million smaller businesses and public sector sites in Great Britain. The 2022 to 2025 framework set annual installation targets for suppliers. It has now been replaced by a "post-2025" regime, with these dates (from the government's non-domestic smart metering collection, updated 1 September 2026):

DateWhat happens
1 October 2024Suppliers must make free, user-friendly energy-use information available to smaller non-domestic customers with smart meters
1 January 2027Suppliers must start telling non-domestic customers about the upcoming changes
1 September 2027New fixed-term non-domestic contracts must include a term that you have, or agree to have, smart or advanced meters; suppliers must meet a new consumer protection code

Northern Ireland has its own arrangements and is outside this rollout.

Smart or advanced: which type applies to you

Under the government's summary of supplier obligations, smaller sites (electricity profile classes 1 to 4, or gas use under 732 MWh a year) are covered by the smart meter rules. Bigger sites (profile classes 5 to 8 and 00, or gas above 732 MWh a year) must have advanced meters under Ofgem licence conditions, which are the heavier-duty half-hourly equipment described in our half-hourly meters guide. Not sure which class you are? Use which profile class is my business.

Smart meters are the second-generation type known as SMETS2. They connect through the national communications network (run by the DCC), so they keep sending readings if you switch supplier. Ask your supplier which type it plans to fit.

Your rights as a microbusiness

If you are a microbusiness, the government summary says suppliers must:

  • offer you a smart meter, subject to the exceptions in the rollout rules (the summary does not list them, so ask your supplier if it says your site is excluded);
  • give tailored energy-saving advice during installation;
  • take reasonable account of when suits you, and keep disruption low;
  • tell you about any charges before they are incurred.

Larger businesses should get a clear explanation of the options if both smart and advanced meters are offered.

Smart Energy GB states that small businesses in England, Scotland and Wales can get a smart meter at no extra charge. Anything beyond that, such as a new cable run or a site needing electrical work, should be agreed in writing first.

How to request one

  1. Contact your supplier, or your broker if they manage the account.
  2. If you rent, check your lease and tell your landlord if you do not pay the bills directly; the meter is part of the building's installation.
  3. Agree a date. Smart Energy GB says an install normally takes about two hours.
  4. Make sure staff know how to see the in-home display or app.

For the step-by-step version see how do I apply for a business smart meter.

What happens to your bills

The main effect is accuracy. A smart meter sends readings automatically, so bills should be based on use rather than estimates, which reduces catch-up bills. See estimated bills and back-billing. It does not change your unit rate, standing charge or tax, but it records when you use energy, which allows time-of-use tariffs and shows where waste is.

Your data

Since 1 December 2022, non-domestic customers of any size can ask for up to 12 months of historic smart or advanced meter data free, and the supplier has 10 working days to respond. You can also name a third party, such as an energy consultant, to receive it. Use it with energy monitoring.

Do you have to accept one?

The government's summary of supplier duties does not say that a business must accept a smart meter, and we have not found a rule that forces one on you today. But since 2019 suppliers have had to take all reasonable steps to fit a compliant smart meter whenever a meter is first installed or replaced, and from September 2027 refusing could limit which fixed-term deals you can sign. Read do businesses have to have a smart meter before declining.

Check your contract's meter clause. Some contracts already let the supplier replace the meter at its discretion.

Worth knowing: accuracy and faults

Smart Energy GB says smart meters are as accurate as traditional meters and must be certified. If you suspect a fault, tell your supplier as you would with any meter, and see what if my business meter is faulty.

Worked example: what better data can show

Take a café using 24,000 kWh of electricity a year. That is an average of 24,000 ÷ 8,760 = 2.7 kW running constantly. Suppose the in-display data shows the shop is drawing 1.5 kW overnight when closed. Over the 8 closed hours a night, that is 1.5 × 8 = 12 kWh a night, or 12 × 365 = 4,380 kWh a year, nearly a fifth of the total. At the DESNZ Q2 2026 non-domestic average of 24.51p/kWh (including Climate Change Levy), that overnight draw costs about 4,380 × £0.2451 = £1,073 a year, before VAT. Turning off a chiller display or signage on a timer is the sort of finding smart data makes obvious. Your numbers will differ; the method is the point.

Things to check before you book an install

  • Signal. Cellular or radio coverage is needed in the meter cupboard. Tell the installer about basements and metal cabinets.
  • Shared or landlord meters. If the meter serves several units, you may not be the one who can approve it.
  • Existing meter contracts. If a separate meter operator agreement is running, ask about any end-of-term issues.
  • Downtime. The supply is switched off briefly, so plan around tills, ovens and refrigeration.

Next steps

  1. Check your meter type on a bill, or ask your supplier.
  2. Ask when your site is scheduled for an upgrade.
  3. If you are renewing after September 2027, expect a smart-contingent clause.
  4. Request your free historic data if you already have a smart or advanced meter.

Guides

Tools

Questions

Glossary terms

Sources

  1. GOV.UK: Non-domestic smart metering
  2. GOV.UK: Non-domestic smart meter rollout - energy supplier obligations
  3. Smart Energy GB: How to get a smart meter for your business
  4. Smart Energy GB: Request a smart meter