From 1 September 2027, a new fixed-term energy contract for a smaller business site must include a term that the customer has, or agrees to have, a smart or advanced meter.
Verification
- Verified as at:
- Source:
- DESNZ, Non-domestic smart meter rollout post-2025: government response, 1 September 2026; Annex D, new Electricity Supply Standard Licence Condition 53 and gas equivalent; DESNZ consultation, October 2025
- Last reviewed by:
- Omnium
Figures in this sheet were current at the verification date above. Regulated charges reset each April. If you are relying on a figure, check the source or ask us.
Designed A4 fact sheet, ready to print or circulate.
What has been decided
Confirmed government decision, implemented through supply licence conditions.
On 1 September 2026 the government confirmed that from 1 September 2027, any new fixed-term energy contract at a designated site must include a term under which the customer has, or agrees to have, a smart or advanced meter. The meter does not need to be fitted before signing; the customer needs to agree to it. Suppliers must start telling customers about the change from 1 January 2027.
Which sites it covers
| Fuel | In scope | Not in scope |
|---|---|---|
| Electricity | Non-half-hourly meters in profile classes 1 to 4 | Half-hourly and profile class 5 to 8 supplies, already under the advanced meter rules |
| Gas | Sites using less than 732 MWh a year | Sites using 732 MWh a year or more |
The government intends to review the definition of designated premises because market-wide half-hourly settlement makes profile classes obsolete.
What it means when you renew
- Agreeing is enough to sign. Installation can follow after the contract starts.
- The supplier chooses a smart or an advanced meter, and an existing one already satisfies the term.
- It applies to contracts entered into from 1 September 2027. The date the contract is made matters, not the supply start date.
- Contracts placed through a broker are covered. Suppliers must take reasonable steps to put the same term in intermediary contracts.
- Out-of-contract rates are not caught, but a site with no fixed deal usually pays more.
If the meter does not go in
Suppliers already using these terms either move the customer onto out-of-contract rates or pass on their losses. A new consumer protection code, binding on suppliers from 1 September 2027, requires the terms to be clear before signing and says a customer should not be penalised where the delay is outside their control. The detail still sits in each supplier’s own terms, so read them before signing.
Where it gets difficult
Landlord consent, remedial works at the meter position, and access or signal problems in basements and shared meter rooms are where installations fail. The government has published template letters for tenants and landlords. These are the questions to raise well before a renewal date, not on it.
How we handle it
We check meter type and profile class on every supply we manage, flag in-scope sites without a smart or advanced meter, and raise landlord, access and works questions ahead of renewal. At renewal we read each supplier’s smart meter terms, including what happens if installation is delayed, and put them in front of you before you sign. Where a site is already smart, half-hourly or a large gas user, we will tell you nothing changes.
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Read next
Where this leads
- Energy monitoring
Half-hourly data read and set against the site's operating pattern.
- Capacity (kVA) review
Agreed capacity tested against a full year of recorded demand.
The first review costs nothing. Anything after it is quoted and agreed in writing.
Supporting sheets in this series
- Meter types explained
Half-hourly, non-half-hourly, AMR, smart and unmetered supplies, what each means for billing and data, and why the meter type decides what you can see.
Metering and data · verified 6 August 2026
- Market-wide half-hourly settlement
Every electricity meter is moving to half-hourly settlement. What changes, when, and why it makes consumption data available where it was not before.
Metering and data · verified 6 August 2026
- New connections
Getting a supply to a site that does not have one. The order the stages run in, and why the timescale is set by the network rather than by you.
Metering and data · verified 6 August 2026
Take this sheet into a meeting
Smart meters and fixed contracts is available as a designed A4 fact sheet, dated and set for printing or circulation.
If this sheet raises a question about your own sites, speak to us.
