Non-Domestic Smart Meter Changes: What Businesses Need to Do Before 2027

What Is Changing?

The government is consulting on new rules designed to increase the use of smart and advanced meters across the non-domestic sector. Under the proposals, businesses without the appropriate meter may be unable to access new fixed-term energy contracts from January 2027.

The aim is to help businesses make better use of their energy data, improve efficiency and support a smarter energy system.

Why Does This Matter for Businesses?

For many businesses, energy contracts are something that’s reviewed once every few years and then forgotten about.

However, if your premises still has a traditional meter when your contract comes up for renewal, you may find:

• Fewer contract options available
• Delays in securing a new fixed-term deal
• Additional administration before renewal
• Reduced access to energy products that rely on smart meter data

The earlier you understand your meter setup, the more time you’ll have to prepare.

How to Check if You Already Have a Smart Meter

Many businesses already have a smart or advanced meter installed and may not realise it.

You may have a smart or advanced meter if:

• Meter readings are sent automatically to your supplier
• You no longer submit manual readings
• Your supplier refers to the meter as “smart”, “advanced” or “half-hourly”
• Your bills include detailed usage information

If you’re unsure, contact your supplier or energy consultant and ask them to confirm the meter type at each site.

What About Multi-Site Businesses?

If you operate from multiple locations, it’s worth carrying out a meter audit well before 2027.

Different sites often have different metering arrangements, especially if properties have been acquired, expanded or relocated over time.

A simple review should include:

• Meter type at each site
• Contract end dates
• Any planned relocations or site closures
• Whether upgrades may be required before renewal

Taking stock now can prevent problems later.

The Benefits of Smart and Advanced Meters

While much of the conversation focuses on compliance, there are practical benefits too.

Smart and advanced meters can help businesses:

• Access more accurate billing
• Reduce estimated bills
• Monitor energy usage more closely
• Identify waste and inefficiencies
• Make more informed purchasing decisions

Government research suggests wider smart meter adoption could help non-domestic organisations reduce energy consumption by making usage data easier to access and understand.

Smart Metering Could Strengthen Your Purchasing Position

For businesses operating across multiple sites, preparing for meter upgrades can also be an opportunity to review their wider energy strategy.

Where contract end dates can be aligned, businesses may be able to consolidate energy consumption from multiple locations into a single procurement exercise. Larger aggregated volumes are often more attractive to suppliers, which can increase competition and, in some circumstances, improve the rates and contract structures available.

A portfolio review should therefore look beyond meter compliance and consider:

• Whether contract end dates are aligned across sites
• Opportunities to bundle consumption into a single tender exercise
• Sites that may benefit from meter upgrades before renewal
• Whether the business qualifies for specialist energy arrangements or support schemes

For organisations with significant electricity consumption, it may also be worth reviewing whether they are eligible for the government’s Energy Intensive Industries (EII) compensation scheme, which can help reduce certain policy-related electricity costs.

What Should Businesses Do Before 2027?

A few simple checks now could save time and hassle later.

Your Smart Meter Action Plan

✅ Check what type of meter is installed at each site

✅ Review upcoming contract renewal dates

✅ Confirm whether any meter upgrades are required

✅ Avoid leaving meter checks until contract renewal

✅ Seek advice if you’re unsure about your current setup

If you’re also reviewing your energy strategy, it may be a good opportunity to assess current business electricity prices and ensure your contract remains competitive.

Frequently Asked Questions

Is a smart meter becoming mandatory for businesses?

Businesses are not currently being required by law to install a smart meter. However, proposed changes would mean suppliers cannot offer many new fixed-term contracts unless a smart or advanced meter is installed, or the customer agrees to have one installed.

What is an advanced meter?

An advanced meter automatically records energy consumption and communicates that information to suppliers. These are commonly used at larger commercial sites and can provide more detailed usage data than traditional meters.

Will this affect small businesses?

Potentially, yes. Many larger organisations already have advanced metering in place, while smaller businesses are more likely to still operate with traditional meters.

Final Thoughts

The proposed 2027 changes are ultimately about ensuring businesses have access to more accurate energy data and a wider range of modern energy contracts.

If you’re unsure where to start, Utility Bidder can help you review your current metering arrangements, understand your energy requirements and compare business energy prices before your next contract renewal.