Smart Meter Changes for SME Businesses from September 2027

From 1 September 2027, small and medium-sized businesses taking out new fixed-term energy contracts will need to have a smart or advanced meter installed – or agree to have one installed within 12 months.

The Government has confirmed new requirements for non-domestic smart meters as part of its plans to accelerate smart meter rollout across smaller businesses and support its wider Clean Power 2030 ambitions.

What is Changing for Business Energy Contracts?

For businesses, this is more than a change to metering. It is another factor to consider when planning your energy procurement and contract renewal strategy.

From 1 September 2027, suppliers entering into new fixed-term contracts with smaller non-domestic customers will need to ensure that the customer:

• Already has a smart or advanced meter; or

• Agrees to have one installed within the following 12 months.

That means businesses with traditional meters should start considering how the changes could affect their next contract renewal.

What Should your Business do Now?

For businesses, the important point is not simply whether you have a smart meter today.

It's about understanding when your current energy contract ends, what type of meter you have and what requirements could apply when you next procure your energy.

We recommend reviewing your metering arrangements as part of your normal energy procurement planning rather than waiting until you're ready to sign a new contract.

This gives you time to identify any potential issues and understand your options before they become a condition of your new contract.

Consider these three questions:

1. What type of meter does your business currently have?

If you're unsure, we can help you establish what metering arrangements are in place at your premises.

2. When does your current energy contract end?

The timing of your next renewal will be important. If you're entering into a new fixed-term contract from September 2027, the new requirement may apply to your premises.

3. Is your meter suitable for your business's future requirements?

Smart and advanced meters can provide more detailed information about energy consumption. That information can be valuable when reviewing your energy use and planning future procurement.

Benefits of Smart Meters

The Government expects smart meters to reduce electricity consumption in smaller businesses and public sector sites by around 2.8%.

For businesses, one of the key benefits is improved visibility of energy consumption.

Smart meters can provide regular consumption information and support billing based on actual usage. The data can also help businesses understand when they are using energy and identify areas where consumption could potentially be reduced.

The better you understand your consumption, the better informed your wider energy management and procurement decisions can be.

How Professional Energy People Can Help

As energy procurement specialists, our role is to help you navigate the energy market and make informed decisions about your business energy contracts.

The new smart meter requirements are one of several developments that businesses need to consider when planning their future energy procurement.

We can help you understand:

• What type of meter you currently have

• When your current contract ends

• What you may need to do before renewing

• How your energy consumption data can support procurement decisions

• How to approach your next energy contract with the right information available

  
  

We'll continue to monitor the Government's plans and industry guidance and will keep our customers informed as more detail becomes available.

Get in touch with our team today to discuss your next energy contract.