Non-domestic smart meter rollout post-2025
Applies to England, Scotland and Wales
Read the full outcome
Detail of outcome
We consulted on proposals to drive new non-domestic smart meter installations post-2025 in support of the Clean Power 2030 Mission and to protect non-domestic consumers in the transition to smart-contingent contracts. This government response summarises the consultation feedback and sets out the government’s final decisions. It confirms that:
- the government is progressing with the smart-contingent contracts policy package. The scope of the policy will be limited to small and medium non-domestic sites (“designated premises”) in the first instance
- the universal implementation requirement will come into effect from 1 September 2027. After this date, if energy suppliers enter into new fixed term energy contracts with non-domestic customers, they must ensure the contract includes a term which provides that the customer has, or agrees to have, smart or advanced meters installed in their designated premises
- the universal communication requirement will come into effect from 1 January 2027. After this date, suppliers must start to communicate the upcoming policy changes so that non-domestic consumers understand what is expected, why and when
- energy suppliers must be fully compliant with the legally binding consumer protection code by 1 September 2027 (though we would encourage suppliers to ensure new fixed term contracts are compliant sooner, where feasible)
- alongside the government response in annex B, the government has published policy guidance to support implementation of the policy package. This includes - case studies to drive consistency in supplier implementation (annex B- Part 1), guidance to support cooperation between commercial landlords and tenants (annex B- Part 2), and a guide for non-domestic consumers on their rights and expectations regarding smart-contingent contracts (annex B- Part 3)
- the government has also published a toolkit to help energy suppliers communicate the rollout of smart-contingent contracts and associated policy changes, which draws on insights from research undertaken with non-domestic customers. Read the energy supplier toolkit and research report
Detail of feedback received
We received 46 responses to the consultation from a wide range of stakeholders, including: non-domestic consumers and representatives, non-domestic energy suppliers and representatives, third-party intermediaries, metering organisations and code bodies.
Original consultation
Consultation description
We’re consulting on new energy supplier requirements and consumer protections in response to the growing use of “smart-contingent contracts” by non-domestic energy suppliers, as part of the non-domestic smart meter policy framework post-2025.
The consultation seeks views on proposed obligations for energy suppliers to:
- universally implement, and coordinate rollout timing, of smart-contingent contracts. After 1 January 2027, energy suppliers cannot enter into new fixed term energy contracts with non-domestic customers unless the customer has, or agrees to have, smart or advanced meters installed in their premises
- universally communicate the policy. All energy suppliers must start to communicate these upcoming changes to consumers regularly and clearly as soon as the licence modifications are made (early 2026)
- abide by a legally binding consumer protection code. All suppliers must adhere to the code from 1 January 2027 to protect non-domestic consumers from the risks of the smart-contingent contracts
Documents
Updates to this page
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Published the government response to this consultation.
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First published.