Consultation on next steps for the Non-Domestic smart meter rollout

The current framework, to support smart meter rollout for businesses, is due to expire at the end of 2025 and this has prompted the Government to consult on the arrangements after 2025. The current framework sets energy suppliers minimum smart meter targets. Suppliers currently have a target to install smart meters (or advanced ‘AMR’ meters where eligible) to 68.7% of relevant non-domestic properties in GB by the end of 2025. As of Q2 2025, 64% of smaller non-domestic sites had installed smart or advanced meters.

Smart meters can provide data to support decisions about retrofitting energy efficiency measures and decarbonisation of operations, lowering business emissions and energy bills. The Government described the rollout to businesses as well-established. However, it understands that businesses yet to install smart meters may be less engaged or face specific challenges with installation.

The Government also found that energy suppliers are increasingly using smart-contingent energy supply contracts. To sign up to these contracts, businesses need to have, or agree to have, a smart meter installed. On average, these contracts were found to be approximately 40% less expensive than alternatives and can incentivise smart meter installations. However, the Government is concerned that if the market has no formal smart meter framework past 2025 then the uptake of smart meters could slow, leading to potential negative outcomes for consumers. The Government therefore proposes to introduce new smart meter rollout requirements for non-domestic energy suppliers, post 2025.

As part of the proposals, the Government set out its overarching policy goals. These include:

• Delivering a high-quality, improved consumer experience. This goal aims to support businesses to access the benefits of smart meters and their energy data. It aims to improve consumer experience by concentrating on customer engagement and supplier obligations.
• Providing certainty to enable investment in the transition to the Government’s ambition of Clean Power by 2030.
• Providing flexibility to the non-domestic sector. This goal aims to give suppliers more flexibility to meet customer demand for new smart installations.

The Government’s proposed energy supplier licence conditions include:

• A universal implementation requirement. A supplier won’t be able to enter new fixed-term energy contracts with customers unless a customer has, or agrees to have, smart or advanced meters installed. Government has proposed that this will come into effect from 1 January 2027.
• A universal communication requirement. Suppliers will have to regularly and clearly communicate to customers that any fixed-term contracts commencing after 1 January 2027 will require either:
  o Smart or advanced meters to have been installed, or
  o The customer’s agreement to have smart or advanced meters installed
• A legally binding consumer protection code of practice. Suppliers must follow a legally binding consumer protection code of practice from 1 January 2027.

The Government is also proposing measures to help tenants in the commercial private rented sector to make use of these proposed policy changes. This includes a Government policy statement and boilerplate letters that can be sent between commercial landlords and tenants to facilitate the uptake of smart meters in the private rented sector.

The consultation’s open for stakeholder feedback until 16 January 2026. The Government will then publish its response and next steps at some point later in 2026.

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