Do businesses have to have a smart meter?

Suppliers have been installing smart and advanced meters at business sites for years, but the rules for customers are tightening.

What the government has set out

• 1 January 2027: suppliers must start telling non-domestic customers what is changing, why and when.
• 1 September 2027: every new fixed-term non-domestic contract must contain a term that the customer has, or agrees to have, smart or advanced meters at the premises. Suppliers must also follow a legally binding consumer protection code added to the Retail Energy Code.

These are called "smart-contingent contracts". The GOV.UK page we reviewed does not say whether a customer can refuse a meter outside that contract term, so I can't give you a firm answer on refusal.

What it means for you in practice

Your situation	Likely effect
Fixed contract signed before 1 Sept 2027	Your existing terms apply until it ends
Renewing or switching on or after 1 Sept 2027	The new contract should include the smart or advanced meter term
Already have a smart or advanced meter	You meet the term; check it is communicating

Smart versus advanced

Smaller sites usually get a smart meter. Larger electricity users may have an advanced meter that records usage in half-hour blocks. We have not set out the detailed rules on which sites need which type, so ask your supplier what it plans to fit. See half-hourly meters explained.

Why you might want one anyway

• Bills based on real readings rather than estimates.
• Usage data that shows when equipment runs after hours.
• Less time spent sending meter readings.

Watch-outs

Ask in writing whether there is any charge for the installation (we found no official statement on who pays), and whether you are tenant or landlord: you may need permission to alter the supply. Don't let a pushy caller book an "installation" without confirming they are your actual supplier.

To arrange one, see how to apply and the wider smart meters guide.

Practical timeline for a business owner

1. Now: check what meter type you have. Ask your supplier if it is smart, advanced or traditional.
2. From January 2027: expect letters or emails from your supplier explaining the changes.
3. Before agreeing a new fixed term: look for the smart or advanced meter clause in the Principal Terms.
4. From September 2027: new fixed-term contracts should include that clause as standard.

If you're in a shared building or a heritage property

Installation may need landlord or building-management consent, or physical access that is hard to arrange. Raise this with your supplier early and ask what options it offers if signal or access is a problem. We did not find official guidance on exemptions, so ask in writing and keep the answer.

Do a smart meter and a good deal go together?

A smart meter does not set your price. Compare the rates, standing charge and contract length as you always would; see contract terms to check.