Regulator confirms small-medium businesses need smart or advanced meters for fixed term contracts
From 1 September 2027, small to medium sized businesses agreeing new fixed term energy contracts will need to have smart or advanced meters installed, or agree to have them installed. That’s according to the Government response to the Non-Domestic Smart Meter Rollout Post-2025 consultation, published 1 September. The new requirement means suppliers will only be able to sign contracts with those small to medium sized customers that agree to replace their traditional meters in the next 12 months.
Background
The non-domestic smart meter rollout covers around 3 million meters in small-to-medium sites in GB. The Government expects smart meters will reduce non-domestic electricity consumption in smaller businesses and public sector sites by 2.8%. The free and regular information provided by smart meters helps organisations manage their energy use, as well as receiving accurate bills based on actual use. Smart meters also benefit the wider energy system, helping Britain’s energy system balance energy supply and demand more efficiently. This reduces outages and maximises the benefits of home-grown renewable power.
The rollout is well-established, with two thirds (67%) of smaller non-domestic sites using smart or advanced meters in Q126. However, the Government aims to accelerate smart meter uptake among non-domestic consumers to support its Clean Power 2030 Mission.
The Government wants to deliver a step-change in the consumer experience of smart metering and ensure all smaller non-domestic organisations can access the full benefits of their smart meter data. To this end it consulted on a series of reforms in October 2025, and published the outcome in September 2026.
The outcome
The Government has decided that, from 1 September 2027, that energy suppliers entering new fixed term energy contracts with smaller non-domestic customers must ensure the customer has, or agrees to have, a smart or advanced meter installed.
The Government intends to lay these changes in Parliament in October 2026 and to work with industry to determine exactly which premises will be impacted by the changes.
At Drax Energy Solutions, we’ll be in touch with our customers to help them understand what the changes mean in the coming months.
Disclaimer
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