Smart meters for business: what the rules mean for you

Smart meters have been rolled out to small businesses for years, but 2027 brings a real change. From September 2027, smaller sites that want a new fixed-term contract will need to agree to a smart meter. Larger sites have needed advanced meters for more than a decade.

This guide explains which meter your business should have, your rights when one is fitted, and what the new rules mean when you renew.

What is a smart meter for a business?

A business smart meter records how much gas or electricity you use and sends the readings to your supplier automatically. For smaller sites the standard is the SMETS2 meter, which communicates over a national network run by the Data Communications Company (DCC).

The government decided in August 2017 that all suppliers to non-domestic premises should use the DCC to operate SMETS2 meters, so they work with any supplier. Ofgem regulates both the energy suppliers and the DCC.

Government figures put the non-domestic rollout at around 3 million smaller businesses and public sector sites across Great Britain.

Which meter should my business have?

The rules depend on the size of the site, measured by electricity profile class or annual gas use.

Your site	What the supplier licence rules say
Microbusiness at a smaller site	Must be offered a SMETS2 meter by default
Other businesses at smaller sites (electricity profile classes 1 to 4, or gas under 732 MWh a year)	Supplier may offer a choice of SMETS2 or an advanced meter. If it offers an advanced meter it must also offer SMETS2 and explain the difference
Larger sites (profile classes 5 to 8 and 00, or gas over 732 MWh a year)	Must be supplied through an advanced meter

The advanced meter rule for larger sites has applied since 6 April 2014. Ofgem’s licence guide says the only exception is where the supplier cannot install one despite taking all reasonable steps.

On top of this, the New and Replacement Obligation, in force since 2019, requires suppliers to take all reasonable steps to install a compliant smart meter whenever a meter is replaced or installed for the first time.

Not sure if you are a microbusiness? See our guide to microbusiness energy. You can find your profile class with our MPAN checker.

What’s the difference between SMETS2 and an advanced (AMR) meter?

Ofgem describes advanced meters as meters that record gas or electricity use for multiple time periods and give the supplier remote access to that data. They have a lower minimum level of functionality than smart meters. The industry also uses the term AMR, short for automated meter reading: AMR service providers used to have their own code of practice, which has since been merged into the Consolidated Metering Code of Practice.

Government guidance describes advanced meters as a type of half-hourly meter found in the non-domestic sector, with some but not all of the features of SMETS2. It also warns that not all smart meter protections apply if you choose an advanced meter. For how larger sites are metered and billed, see our guide to half-hourly meters.

Can my business refuse a smart meter?

At a smaller site you can still say no, but from 1 September 2027 doing so will rule out new fixed-term contracts. Larger sites do not have the same choice, because licence rules require them to be supplied through an advanced meter.

Some suppliers already sell “smart-contingent” contracts: fixed-term deals that require you to have a smart meter installed. The government’s response notes that, unlike in the domestic market, non-domestic suppliers are under no obligation to supply premises on request, and have started using these contracts to increase smart meter uptake.

The government has now decided to make this approach universal and regulated.

What changes in 2027?

The government published its decisions on 1 September 2026. They apply to “designated premises”: sites with electricity meters in profile classes 1 to 4, or gas use below 732 MWh a year.

Date	What happens
From 1 January 2027	Suppliers must start telling non-domestic customers about the changes
From 1 September 2027	Any new fixed-term contract for designated premises must include a term that you have, or agree to have, smart or advanced meters
By 1 September 2027	Suppliers must comply with a legally binding consumer protection code, added to the Retail Energy Code

The government’s consumer guide says that if you do not want to agree to a smart meter installation, you will need to choose an alternative type of energy contract. Our guide to fixed vs flexible contracts explains the options, and our renewal guide covers timing.

What protections come with smart-contingent contracts?

From 1 September 2027, the government’s guide says:

• Before you sign, your supplier should clearly explain if a smart meter is a condition of the contract, and what happens if you later decide not to go ahead. If you use a broker, your supplier should make sure the broker understands this so they can pass it on (see our guide to energy brokers).
• After you sign, your supplier should contact you within three months of supply starting to book an installation, and should get the meter installed within 12 months.
• If the installation fails for a reason within the supplier’s control, it should not enforce the smart meter condition.
• If it fails for reasons outside your control, such as technical problems, a landlord refusing permission, or another organisation blocking access to a shared meter cupboard, the supplier also should not enforce the condition. You may be asked to sign a declaration.
• If extra building or electrical work is needed first, the supplier should not enforce the condition while that work is unresolved.
• If you simply change your mind, and nothing outside your control is stopping the installation, the supplier may apply the consequences it explained before you signed.

If you rent your premises, you may need your landlord’s agreement depending on your lease. The government has published guidance for commercial landlords and tenants alongside its decision.

What protections do microbusinesses get at installation?

Microbusinesses get extra protections that apply now, not just from 2027.

Ofgem’s smart meter guaranteed standards came into force on 23 February 2026. For microbusinesses they mean:

• Appointments: if you ask for a first smart meter, your supplier must offer an appointment within twelve weeks of your request.
• Failed installations: you are compensated if an installation fails because of a problem within the supplier’s control.
• Reported problems: if you report a fault, the supplier must assess it, act and offer you an update within five working days.

The government’s guide puts the compensation at £40 in each case, and adds that you may also get £40 if your supplier cancels a booked appointment within 24 hours of it.

The installation code of practice is binding for microbusiness installations. It requires tailored energy efficiency advice at a suitable time, and asks suppliers to accommodate your reasonable scheduling needs, keep disruption to a minimum and tell you about any charges in advance. The government’s guide warns that the electricity may need to be off for up to two hours, and someone will need to be there to let the installer in.

What are the benefits of a smart or advanced meter?

According to the government’s guide, once a working smart meter is installed you should get:

• free, regular information on your energy use, through an online platform or display
• automatic readings, so you no longer have to submit them
• accurate bills based on actual use rather than estimates
• access to smart products, including time-of-use tariffs

What data am I entitled to?

• Since 1 December 2022, non-domestic customers of any size, or a third party they nominate, can ask for up to 12 months of historic smart or advanced meter data for free. Suppliers must respond within 10 working days.
• Since 1 October 2024, suppliers must give smaller non-domestic customers with smart or advanced meters free access to their energy use information, for example through an app or online tool.

Smart meter data is also what powers half-hourly settlement. The MHHS programme is migrating smart, non-smart and advanced metered supplies alike, so you do not need a smart meter to be included, but half-hourly data is what time-of-use products rely on.

How do I check whether my smart meter is working?

If your bills are still estimated, your meter may not be sending readings. The government’s guide says that if a smart meter is not sending automatic readings, your supplier should fix it as soon as possible and within 90 days of being made aware.

Citizens Advice runs a smart meter checker. You enter your MPAN or MPRN and postcode, which it shares with the DCC to check your meter’s status. If there is a problem, report it to your supplier. Microbusinesses should get a response within five working days under the guaranteed standards.

If your supplier does not put things right, our guide to business energy complaints explains how to escalate.

Frequently asked questions