If your business energy contract is up for renewal in the next couple of years, there's a new rule worth knowing about. The government has confirmed that smaller business sites will need a smart meter to sign a new fixed-term energy deal.
What's changing
On 1st September 2026, the Department for Energy Security and Net Zero published its final decision. From 1st September 2027, any new fixed-term contract for a smaller business site must include a term saying you already have, or agree to have, a smart or advanced meter. If you don't have one, your supplier must fit it or arrange for it to be fitted. Read the government's decision
From 1st January 2027, suppliers have to start writing to business customers to explain the change and what, if anything, you need to do.
Who it covers
It applies to small and medium business sites in England, Scotland and Wales, which in practice means most shops, offices, workshops and small units. Larger sites that use a lot of gas or electricity should already have advanced meters, so they're less affected. Contracts arranged through brokers are covered too.
Why it's worth acting early
- A smart meter means accurate bills rather than estimates.
- Detailed usage data shows when and where you use energy, which is often where the easiest savings are.
- It's useful groundwork if you're thinking about solar or a battery, because it shows how much of your own power you'd actually use.
- If you rent your premises, you may need your landlord's agreement. The government has published template wording to help landlords and tenants sort this out.
Leaving it until your renewal date could mean a rushed installation just when you want to lock in a price.
What we'd suggest
Check what meters you have now, when each contract ends, and whether you'll need anyone's permission for a meter change. If you'd like a hand looking at your meters, contracts and usage data together, we're happy to have a quick, no-obligation chat.
- Energy costs
- Smart meters
- Energy contracts
- UK business
Want to know what this means for your business?
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