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.
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 It has now been replaced by a "post-2025" regime, with these dates (from the government's non-domestic smart metering collection, updated 1 September 2026):
| Date | What happens |
|---|---|
| 1 October 2024 | Suppliers must make free, user-friendly energy-use information available to smaller non-domestic customers with smart meters |
| 1 January 2027 | Suppliers must start telling non-domestic customers about the upcoming changes |
| 1 September 2027 | New 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
- Contact your supplier, or your broker if they manage the account.
- 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.
- Agree a date. Smart Energy GB says an install normally takes about two hours.
- 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
- Check your meter type on a bill, or ask your supplier.
- Ask when your site is scheduled for an upgrade.
- If you are renewing after September 2027, expect a smart-contingent clause.
- Request your free historic data if you already have a smart or advanced meter.
Guides
Half-hourly meters for business: who needs one and what it means
What a half-hourly (HH) electricity meter is, who must have one (profile classes 5-8), how bills change, costs and the MHHS link.MPAN and MPRN numbers: what they mean and where to find them
What an MPAN and MPRN are, what each digit means, where to find them on bills or online, and what to do if you cannot find yours.MHHS: what market-wide half-hourly settlement means for your business
What MHHS is, the October 2025 to May 2027 timetable and what it means for a small business: meters, bills, tariffs and what to do…Electricity profile classes explained: PC1 to PC8 and what yours means
Profile classes 1 to 8 for business electricity: what PC3, PC4 and PC5-8 mean, how load factor works, and how to find your class.Business meter installation and replacement: who owns the meter and who pays
Who owns and maintains a business energy meter, the MOP and MAP roles, what installation or replacement may cost, and your rights.Prepayment meters for business: availability and trade-offs
Can a business have a prepayment meter? How business prepay works, what to ask a supplier, the trade-offs and alternatives if cash…Supply capacity, kVA and three-phase charges: what to know and how to cut them
Agreed supply capacity, kVA and excess capacity charges explained for UK businesses, with worked examples and how to change your c…
Tools
Questions
Do businesses have to have a smart meter?
Do businesses have to have a smart meter? What the 2027 smart-contingent contract rules change, and what you can do now.How do I apply for a smart meter for my small business?
How to ask for a smart meter at your small business: who to contact, what to have ready, tenant permission and what to check after…Where do I find my MPAN?
Where to find your MPAN electricity meter number: on your bill or contract, on the meter, or by asking your network operator or su…Where do I find my MPRN?
Where to find your MPRN gas meter point number: bill, contract, Find My Supplier lookup or your gas network. A short guide for bus…Why was my business moved to a half-hourly meter?
Why was your business moved to a half-hourly meter? Profile classes 5-8, settlement rules and what to ask your supplier.Does MHHS change my bill?
Does market-wide half-hourly settlement (MHHS) change a business energy bill? What it is, the timeline and what to check on your c…What do the numbers in an MPAN mean?
What the numbers in an MPAN mean: the 8-digit top line and 13-digit core of the 21-digit number explained, with a made-up worked e…Which electricity profile class is my business?
Which electricity profile class is your business? Classes 3 to 8 explained, how to check yours on your MPAN and what it means for …Can a business have a prepayment meter?
Can a business have a prepayment meter? What to ask suppliers, the risks and alternatives, and where to complain if one is imposed…What is a three-phase supply and do I need one?
What a three-phase electricity supply is, who needs one (workshops, kitchens, EV chargers) and how it links to capacity and bills.What happens if I exceed my agreed supply capacity?
What happens if your business exceeds its agreed supply capacity? Excess capacity charges, how to spot them and how to avoid them.What should I do if I think my business meter is faulty?
Think your business energy meter is faulty? Check readings, tell the supplier, ask for a test and escalate to the Energy Ombudsman…
Glossary terms
Annual Quantity (AQ)
Annual Quantity (AQ) is the estimated yearly gas use recorded against your MPRN. See why it matters for quotes and charges.Data Aggregator (DA)
A Data Aggregator receives checked meter data from Data Collectors and totals it for electricity settlement. Plain-English explana…Data Collector (DC)
A Data Collector gathers, checks and estimates electricity meter data for your supplier. See how it affects estimated bills.Distribution Network Operator (DNO)
A DNO owns the local electricity network that connects your premises. See who yours is, what it does and why you may need to conta…Estimated Annual Consumption (EAC)
EAC is the estimate of yearly electricity use for a standard meter. See where it comes from and how to correct a wrong figure.Estimated reading
An estimated reading is the supplier's guess at your energy use when no real meter reading is available. See how to correct itGas Distribution Network (GDN)
A gas distribution network owns the pipes that bring gas to your premises, and is who you call about a gas leak. Plain-English exp…Half hourly meter
A half-hourly meter records electricity use every 30 minutes, so billing can reflect when you use power. See what changes for your…Independent Gas Transporter (IGT)
An independent gas transporter runs gas pipes on newer developments, connecting to a main network. See what that means for your bi…Meter Asset Manager (MAM)
A Meter Asset Manager owns, installs and maintains gas meters on behalf of your supplier. Find out why it matters when meter charg…Meter Operator (MOP)
A Meter Operator installs, maintains and tests electricity meters under an agreement with your supplier. Learn why it appears on y…MHHS (Market-wide Half-Hourly Settlement)
MHHS moves all electricity customers to being settled on half-hourly data. See the timeline and what it means for a business.MPAN (Meter Point Administration Number)
An MPAN is the 21-digit number that identifies your business electricity supply. See where to find it on your bill and what its pa…MPRN (Meter Point Reference Number)
An MPRN is the number that identifies your business gas supply point. Find out where it appears on your bill and why you need it t…Profile class
A profile class is one of eight categories used to estimate when an electricity customer uses power. See where yours appears in yo…SMETS2 smart meter
SMETS2 is the second generation of GB smart meters. See how it differs from SMETS1 and what government rules say for businesses.Supply capacity
Supply capacity is the maximum electrical load your connection is agreed to provide, in kVA. Exceeding it can lead to charges.Three phase
A three-phase supply carries power on three live wires, used for larger motors and heavier loads. See how to tell if you have one.