Open consultation

Annex A: Analytical evidence (accessible webpage)

Published 23 October 2025

Applies to England, Scotland and Wales

1. Proposed Policy Package

This annex provides a summary of the analysis undertaken by the department to model the impact and associated costs and benefits of the the proposed policy package with respect to non-domestic smart-contingent contracts. It includes key assumptions and an overview of findings, along with additional analysis to identify societal, business, wider impacts; a small and microbusiness assessment; and information about how the department will monitor and evaluate the proposed policy.

The proposed non-domestic policy analysed in this annex consists of the following new energy supplier licence conditions:

(a) A universal implementation requirement. From 1st 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. If the supplier’s contract is with an energy buying intermediary (and not the customer directly) the supplier must take All Reasonable Steps to include provisions in their new contracts with these intermediaries to require that the intermediary makes their new fixed term energy contracts with non-domestic customers smart-contingent from 1st January 2027 also.

(b) A universal communication requirement. As soon as the proposed supplier licence modifications are made (currently intended for early 2026), all energy suppliers must regularly and clearly communicate to customers that if they wish to enter into or renew a fixed term energy contract after 1st January 2027 they will need to have or agree to have smart or advanced meters installed in their premises.

(c) A legally binding consumer protection code of practice. From 1st January 2027 and in delivering the universal implementation requirement, energy suppliers must follow a legally binding consumer protection code of practice with respect to their new non-domestic smart-contingent contracts. The code will contain provisions relating to appointment fulfilment and being fair, proportionate and transparent to customers in implementing these contracts.

The department will look to update the analysis in this annex alongside policy decisions as part of the government response. The impacts of the policy package will be published in the department’s final impact assessment.

2. Costs and benefits

Starting point: end 2025

While the universal implementation requirement is proposed to take effect from 1 January 2027, our analysis assumes that the universal communication requirement begins to impact installation rates as soon as it comes into effect in 2026 and therefore the starting point for our analysis is the end of 2025.

The analysis assumes that non-domestic smart coverage at the end of 2025 is in line with supplier installation targets set under the existing Targets Framework (70% smart coverage at the end of 2025, after accounting for new connections). Reaching this level of smart coverage by the end of 2025 assumes a higher rate of new installations compared to recent installation rates and therefore represents a cautious assumption with respect to the Net Present Value (NPV) of the proposed policy package, which would be greater if smart coverage was lower than estimated at the end of 2025.

Rollout under the counterfactual(s)

This analysis models two counterfactual rollouts, both reflective of scenarios in which the proposed policy package with respect to smart-contingent contracts is not introduced. These two counterfactuals have been modelled to reflect two alternative scenarios that may occur, stemming from piecemeal or uneven supplier delivery of these contracts. These two scenarios are:

Counterfactual Scenario 1: Non-domestic smart meter rollout continues but only under the New and Replacement Obligation (NRO) once the existing Targets Framework expires at the end of 2025. The only obligation that would apply to energy suppliers with respect to new non-domestic installations is the NRO. This requires that energy suppliers must (subject to all reasonable steps) install smart meters in all new metering points and where meters require replacement, for example at the end of their asset life. In this scenario, market rollout stalls due to suppliers plateauing or rolling back on the implementation of smart-contingent contracts because they fear ‘going first’ with respect to enforcing against non-domestic customers for smart-contingent contract breaches and because they have no regulatory incentives to do so. As a result, smart coverage at the end of 2030 would be lower than that achieved by the preferred option of Government intervention to deliver a non-domestic smart-contingent contracts policy package. This scenario results in 73% smart coverage by the end of 2030.

Counterfactual Scenario 2: Non-domestic smart meter rollout continues under the NRO once the existing Targets Framework expires at the end of 2025. In addition, some (but not all) non-domestic suppliers implement and enforce smart-contingent contracts voluntarily. This progresses the smart rollout further than in Scenario 1, where the NRO is the only driver of rollout to non-domestic customers, but without government intervention, not every supplier can be assumed to take this route. For the purposes of this modelling, it has been assumed that 50% of non-domestic suppliers decide to implement and enforce smart-contingent contracts without government regulation. Given the high level of uncertainty in this scenario, 50% has been chosen as a cautious upper bound for the level of enforcement which may occur in the market without government intervention. This scenario results in a smart coverage of 81% by the end of 2030.

Rollout under the proposed policy

From 2026 onwards we model the rollout driven by the proposed policy package by splitting the non-smart meters into cohorts reflecting how often they switch contracts (e.g. never, rarely, every year, every two years etc). The proportion of meters in each of these cohorts was designed to be consistent with recent Ofgem survey data on non-domestic consumer switching patterns in the market and contract length. ^{[footnote 1]} For each of these cohorts, for each year, the model estimates how many will get a smart meter installed after entering into a new fixed term energy contract (either in that year or in the subsequent year, allowing for a lag between contract inception and installation). We assume the awareness raising in 2026 has some impact on installation rates, as some customers seek a smart meter in response to communications received ahead of the universal implementation requirement coming into effect (rather than waiting until contract renewal). Each year all non-smart meters which do not have a smart meter installed are also modelled as having a chance to have a smart meter installed due to the NRO. ^{[footnote 2]} Altogether these assumptions result in a modelled non-domestic smart coverage of 88% by the end of 2030.

The demand for new smart meter installations under the proposed policy (and NRO activity) is shown below in Figure 1.

Figure 1: Annual non-domestic smart meter installations as a result of the proposed smart contingent policy package and NRO (2026-2033)

Both 2027 and 2028 are modelled as needing a peak of between 170k-190k new smart meter installations. This is driven by those whose contract we expect to come up for renewal during this period (i.e. those whose one- or two-year fixed term contracts conclude alongside a proportion of longer-term contracts which expire during this window).

Installations driven by the smart-contingent policy decrease in 2029 as those who entered into a new fixed term contract in 2027 or 2028 are assumed to have already upgraded to smart meters as part of their previous fixed term contract renewal process. This pattern continues after 2030 as by this point some customers will have been through several fixed term contract renewals.

Alongside new smart meter installations resulting from the policy and meeting the NRO we expect suppliers to progress with other activities, including: the transition to 4G for advanced meters, pre-emptive replacement of Smart Metering Equipment Technical Specifications (SMETS) 1 meters, pre-emptive communications hub exchanges of SMETS2 meters in Communications Service Providers (CSP) -South/Central; and ensuring consumers have an improved smart metering experience by continuing to recover smart meters not operating in smart mode. The exact combination of activities required will depend on the individual supplier’s portfolio.

The number of new installations anticipated as a result of the policy proposals and meeting the NRO is consistently below recent levels of annual market-wide activity (230k in 2024) which suggests that suppliers will have flexibility to continue to fulfil other licence conditions and commercial priorities in those years including progressing their 4G advanced meter transition. Specifically, in 2026, where we have modelled a lower volume of new installations as a result of this specific policy (because whilst we anticipate the awareness raising requirement to have some impact on new installations, the universal implementation requirement does not come into effect until 1st January 2027), we would expect suppliers to fully utilise their remaining installer capacity. This would be to respond to proactive requests from any consumers that request a smart meter installation, progress their 4G advanced meter transition and improve consumer experience by recovering smart meters not working in smart mode.

In addition, the absence of additional regulatory requirements with respect to the non-domestic 4G transition in this consultation means that suppliers can manage their installer capacity in accordance with the dates by which different meter types will require an upgrade to 4G (with advanced meter upgrades determined by their specific communications provider arrangements). 

At a market-wide level, across 2026-2033, we estimate an average of ~280k total activities are likely to be needed each year, which is an increase on recent annual non-domestic activity levels of 230k. This includes activities to upgrade advanced meters to 4G communications, where we assume that a quarter of these upgrades do not require a site visit. The total volume of activities would increase by less than 20k if pre-emptive SMETS2 communications hub upgrades in CSP-North are included. This could mean that some suppliers, depending on their individual portfolios and the combination of activities they need to undertake, may need a small increase to the number of installers they have available to carry out non-domestic jobs within this period. However:

• Any increases are likely to be small (we estimate that all non-domestic activities post-2025 would require the equivalent of 350-400 dedicated FTE installers, in the context of over 6000 FTEs recently available in the whole market). While this includes an assumption of a higher productivity rate for exchanging advanced meter modems and SMETS2 communications hubs than a traditional meter replacement, the assumed productivity increase is conservative and may underestimate resource efficiency. In addition, the consultation is anticipated to provide industry with the certainty and notice they need to invest (including confidence in non-domestic consumer demand for smart meters).
• The peak activity volumes could be decreased if consumers who are made aware of the smart-contingent policy proposals in 2026 (e.g. as a result of the supplier awareness raising requirement) proactively seek a smart meter or accept one at the point of contract renewal (rather than wait until the supplier obligation takes effect on 1st January 2027). In our modelling we conservatively assumed that 20% of switchers in 2026 get a smart meter installed.
• The policy is anticipated to enable efficient resource planning for suppliers, with the majority of non-domestic energy contracts coming up for renewal in Spring and Autumn each year. Along with the anticipated reduced need to campaign to non-domestic customers as a result of this policy, this also offers opportunities to drive efficiencies with respect to wider meter upgrades by tying them to the contract renewal process and/or staggering them to occur at alternative points in the year.

Comparison of modelled rollouts

The difference in modelled smart coverage achieved by the proposed policy and both counterfactual scenarios can be seen below in Figure 2.

Figure 2: Range of Non-domestic End of Year Smart Coverage (%) (2025-2035)

Costs and benefits results

The appraisal has been conducted using the Smart Metering Implementation Programme’s 2019 Cost Benefit Analysis model ^{[footnote 3]} which was also used as the basis for annual Costs and Benefits Report to Parliament ^{[footnote 4]}.

Figure 3 shows the modelling approach used and describes how the progression of the rollout under the proposed policy produces the associated cost and benefits.

Figure 3: Diagram of the Cost Benefit Analysis Modelling – Non-domestic Policy Package [text version]

Counterfactual Scenarios

Non-domestic rollout proceeds solely under the New and Replacement Obligation (NRO)

• Non-domestic smart meter rollout continues only under the NRO once the existing Targets Framework expires at the end of 2025 - suppliers fear ‘going first’ with respect to enforcing against non-domestic customers for smart-contingent contract breaches, leading to a stall in smart meter rollout progress. Leads to a non-domestic smart coverage of 73% at the end of 2030.

In the absence of regulation half of the market voluntarily introduces and enforces smart contingent contracts

• Non-domestic smart meter rollout continues under the NRO from the end of 2025 and additionally, some (but not all) non-domestic suppliers do implement and enforce smart-contingent contracts voluntarily, driving additional smart meter uptake but with heightened risk to consumers. Leads to a non-domestic smart coverage of 81% at the end of 2030.

Policy scenario

Implementation of the smart-contingent policy package

• Universal implementation requirement such that energy suppliers cannot enter into new fixed term contracts with non-domestic customers unless the customer has, or agrees to have, smart or advanced meters installed in their premises (proposed: from 1st January 2027), alongside a universal communication requirement and a legally binding consumer protection code of practice. Leads to a non-domestic smart coverage of 88% at the end of 2030.

All scenarios use recent trends in metering points to estimate the number of overall metering points in the future (these are taken directly from DESNZ Official Statistics).

These scenarios lead to different levels of smart coverage. Additional smart meters create the following cost and benefit flows:

Costs

• Supplier in-premises costs: asset costs, installation costs, operation and maintenance costs
• Other costs: Supplier and industry opex and capex, pavement reading inefficiency, energy consumed by smart meter equipment, disposal costs

Benefits

• Non-domestic customer benefits: energy savings
• Energy supplier benefits: avoided site visits, customer switching benefits, reduced customer service enquiries, improved debt handling, reduced theft and losses
• Other benefits: carbon and air quality benefits, network benefits

Modelled estimates for each of the cost and benefit areas in Figure 3 were calculated using updated assumptions (where relevant) based on a range of evidence, including regular data collection from energy suppliers which informs the quarterly Official Statistics report ^{[footnote 5]}. The model assumptions represent a robust understanding of both the fixed costs of delivering the smart meter rollout and the incremental costs and benefits that are accrued once each smart meter is installed.

The appraisal of the proposed framework spans the 10-year period from 2026 to 2035. This is line with the standard recommended appraisal period in the Green Book and the standard social discount rate of 3.5% has been applied to all costs and benefits within this analysis. ^{[footnote 6]}

Overall, the proposed framework generates a NPV of between £161m and £340m (discounted to 2026 and in 2025 prices). The NPV range reflects the uncertainty in how the market may approach smart-contingent contracts without government intervention as it is the NPV of the proposed policy package relative to each counterfactual scenario. These results are in line with previous analysis which suggests that increases in smart coverage deliver a net benefit to society.

The breakdown of monetised costs and benefits over the 10-year appraisal period can be seen in Table 1.

Table 1 - Full breakdown of costs and benefits. Non-domestic policy package relative to both counterfactual scenarios All figures discounted to 2026 and in 2025 prices (£m).

	Counterfactual scenario 2: Some (but not all) non-domestic suppliers implement and enforce smart-contingent contracts voluntarily.	Counterfactual scenario 1: Market progress with respect to smart-contingent contracts stalls and rollout proceeds solely under the NRO.
Non-domestic energy savings	92	194
Energy supplier benefits	26	57
Carbon & air quality benefits	81	171
Network benefits	1	2
Total Benefits (£m)	200	424
In-premises costs	37	72
Other costs	2	12
Total Costs (£m)	39	84
Total NPV (£m)	161	340

In the policy scenario relative to the two counterfactuals, the key drivers of costs are those associated with metering equipment and the installation of additional smart meters. The installation and asset costs in Table 1 both incorporate a 12% optimism bias applied to costs incurred by meters not in smart mode. A rate of 12% has been used as this is the proportion of smart meters that were not in smart mode across large non-domestic suppliers according to Q1 2025 official statistics ^{[footnote 7]}.The resulting estimate of costs is cautious, and actual costs are likely to be significantly lower as not all recoveries into smart mode will require new metering equipment and an installer visit (as we have assumed). Due to ongoing Ofgem enforcement it is also likely that the proportion of meters that are not in smart mode will continue to fall over time and therefore historic rates of meters not in smart mode are likely to be a very pessimistic view of what rates will look like going forward.

As shown in Table 1, smart coverage in both counterfactual scenarios delivers significant benefits to both consumers and energy suppliers. The primary benefit to non-domestic consumers consists of energy usage reductions driven by changes in consumers’ energy consumption behaviour as a result of using a smart metering together with the provision of data. Energy savings to non-domestic consumers equate to between £92m and £194m, accounting for just under half of the total benefits delivered through this proposed policy in either scenario. There are also benefits to suppliers with the analysis suggesting supplier benefits in the region of £26m and £57m depending on the level of smart coverage achieved by these measures relative to the two counterfactual scenarios.

The increased smart meter coverage also generates environmental benefits in the form of carbon and air quality benefits, which amount to £81m-£171m. These benefits are accrued due to reduced non-domestic energy consumption, which reduces carbon emissions. These benefits contribute to the UK’s commitment to achieve net zero carbon emissions by 2050 and support the 2030 Clean Power Mission.

Benefits to the wider energy system include network benefits. The installation of additional smart meters delivered by the proposed policy provide network benefits of £1m-£2m.These are accrued by providing Distribution Network Operators with more data, allowing them to identify network faults, restore electricity supply more quickly when outages occur, and take better informed investment decisions.

3. Impacts on businesses and households

Impacts on businesses

The proposed policy drives more non-domestic smart meter installations relative to both counterfactual scenarios. When accounting for costs and benefits to energy suppliers and benefits to businesses in the non-domestic sector we anticipate this policy will deliver a positive business NPV of between £57m and £120m over the appraisal period.

The installation of additional meters under the policy proposals (relative to the counterfactuals) generates additional costs for suppliers which, like any supplier costs, can be passed on to non-domestic consumers including businesses in the form of higher energy bills.

However, the policy delivers significant benefits to suppliers of smart metering such as avoided meter reading and inspection visits and therefore some of these costs will be offset. Once accounting for this and energy saving benefits to non-domestic consumers (which includes businesses), it is anticipated that the policy will deliver annual net bill savings for non-domestic consumers over the period 2026-2035.

The policy is also anticipated to generate positive economic growth impacts such as an additional £13m-£28m of capital investment in smart metering assets and by encouraging industry to continue to invest in and retain the non-domestic installer workforce.

Impacts on households

The proposed policy only applies to the non-domestic sector and is therefore not expected to have any impact on households.

4. Small and micro business assessment (SaMBA)

Supplier data sourced from Fame ^{[footnote 8]} indicates that the majority (62%) of the 47 energy suppliers currently in operation in Great Britain (GB) which have obligations under the non-domestic smart metering mandate are medium to large businesses, based on the Better Regulation Framework definition of businesses that have more than fifty employees ^{[footnote 9]}. A full breakdown of non-domestic suppliers by different Better Regulation Framework categorisations on employee sizes can be seen below in Table 2.

Table 2: Suppliers with non-domestic smart meter mandate obligations by number of employees and Better Regulation Framework classifications

Business categorisation	Better Regulation Framework definition (number of employees)	Number of non-domestic obligation suppliers	Proportion of total non-domestic obligation suppliers	Contribution to total operating non-domestic smart meters
Micro	1-9	8	17%	1%
Small	10-49	10	21%	5%
Medium	50-499	16	34%	17%
Large	500+	13	28%	78%

The assessment of supplier data which has fed into this SaMBA is based on matching Fame database information on employee numbers to a list of suppliers with obligations under the smart metering mandate. Where employee data was missing, or supplier names did not immediately match to a business in the Fame database, then additional data was sourced via Companies House ^{[footnote 10]}.

It is crucial that the policy proposals apply to all non-domestic suppliers, including smaller non-domestic energy suppliers who supply 22% of meters in scope of the non-domestic smart meter rollout. The rationale for this is that the policy would not deliver its objectives if any suppliers were to be made exempt. A consistent market-wide transition to smart-contingent contracts removes first mover disadvantages with respect to implementing and enforcing smart-contingent contracts. The introduction of a universal implementation date and communication requirement also ensures that there is clear and equal information available to all non-domestic consumers regarding the need to agree to smart meters if they wish to renew a fixed term energy contract from 2027. Universal implementation of the consumer protection code ensures that all consumers benefit from the protections irrespective of the size of their energy supplier.

Equally, if the policy only applied to larger suppliers, the policy could begin to impact non-domestic switching choices (in that the most disengaged customers could choose to renew a fixed term contract with a small supplier instead of facilitating the smart meter installation), leading to market distortion and reducing the impact of the policy on customer demand for smart metering.

In addition, not applying the smart-contingent requirements to all non-domestic suppliers would reduce the impact of the policy on smart meter uptake. This is particularly significant in the non-domestic sector given most of the benefits are incurred by businesses themselves in the form of energy consumption savings. The 2015 Business Energy Efficiency Survey suggests that the private sector accounts for 75% of non-domestic energy consumption ^{[footnote 11]}. Given that more than 99% of private businesses in GB are defined as small or micro businesses (i.e. businesses with 0 to 49 employees), evidence suggests that a significant proportion of the £81m - £171m in non-domestic energy consumption savings generated by this policy package will be realised by small and micro businesses ^{[footnote 12]}.

Costs for small and micro suppliers as a result of the policy will be broadly proportionate to the number of smart meters they install, as the majority of the costs to suppliers are similar regardless of supplier size (e.g. metering assets and communications hubs costs). Given that only 6% of the current set of non-domestic smart meters are operated by small and micro suppliers (as in Table 2) compared to ~94% by medium and large suppliers, we expect that a small proportion of the £39-84m in costs as a result of the policy will fall to these suppliers, and that they will not be disproportionately burdened. The policy also generates benefits in reduced administrative engagement costs that help minimise the overall burden on small and micro suppliers (this benefit is covered in more detail in the next section on non-monetised costs and benefits). Assuming that volume of installations over the coming years remains proportionate to the number of meters currently operated by each supplier, this would suggest costs of £2m-£5m for small and micro suppliers.

5. Wider impacts

Non-monetised costs and benefits

Whilst the smart metering programme’s cost-benefit analysis model covers a wide range of costs and benefits of smart metering, the proposed policy also generates the following non-monetised costs and benefits:

• Enhanced consumer protection for non-domestic consumers from market driven implementation of smart-contingent contracts (particularly small and micro businesses). Government regulation to provide a formal obligation on suppliers to implement smart contingent contracts supported by a binding consumer protection code best protects consumers from the risks of a market-led implementation of smart-contingent contracts. These risks include risks associated with inconsistent supplier application, unfair or disproportionate enforcement action and customer confusion. The binding consumer protection code ensures that the consequences of not complying with the terms of their smart-contingent contract are clearly communicated to non-domestic consumers.
• The costs of producing the consumer protection code and familiarisation costs to suppliers have not been monetised. These have not been monetised on proportionality grounds. This is because these costs will be extremely small relative to the wider costs of installing smart meters.
• Reduced supplier administrative and engagement costs. The policies in this consultation give non-domestic energy suppliers the flexibility to meet customer demand for new installations over time gradually and at the point of fixed term contract renewal, providing more choice in how suppliers campaign to customers in-between, thereby also reducing administrative and engagement costs. In addition, it is envisaged that the new policy framework will reduce the administrative burden on suppliers with a simplified reporting process under the Retail Energy Code.

Impacts on wider government priorities

This policy will help facilitate the UK’s progress towards achieving its 2050 Net Zero Target and 2030 Clean Power Mission. The overall NPV for this policy contains significant monetised carbon reduction and clean air benefits (these can be seen in Table 1 along with the full breakdown of all costs and benefits).

Beyond impacts to energy suppliers and other business impacts covered in this annex, it is not anticipated that the policy package will have any broader impact on the UK business environment.

The proposed regulation is expected to have a neutral (neither positive or negative) impact on international trade and investment.

6. Monitoring and evaluation

The reporting, monitoring, compliance, and enforcement of these policies are not within the Department’s remit and, subject to the outcome of the consultation, will be a matter for the Retail Energy Code and the regulator, Ofgem.

However, the department does have a role in monitoring and evaluating the contribution of these policies to the overall smart rollout and the experience of consumers. To do this Department will deliver activities including, but not limited to:

• collecting and reporting data on roll-out progress from energy suppliers and administrative sources
• carrying out research and evaluation to monitor consumer experience, identify best practice, identify and track impacts, and assess benefits realisation
• reporting annually to parliament on the costs and benefits associated with meters that have been installed to date

Appendix: Non-Smart Attitudes to Smart Meters (YouGov, Dec 2024)

Table 3. Findings of Non-Domestic attitudes towards Smart Meters for those without a Smart Meter (YouGov, Dec 2024)

	Weighted Count	Unweighted Count	Percentage
Owns a smart meter	329	345	66.3%
Seek	38	38	7.7%
Accept	25	25	5.0%
Indifferent	24	21	4.9%
Reject (unlikely to take up)	80	68	16.1%
Total	496	497	100.0%

Findings

The data in Table 3 shows market-wide attitudes and ownership of smart meters, based on an online survey carried out in December 2024. This analysis was carried out by the Department for Energy Security and Net Zero (DESNZ), using data supplied from YouGov. Two thirds of respondents (66%) reported they have at least one smart or advanced meter for their business or organisation. The remaining third (34%) reported they did not have a smart meter or were unsure if they had one. In Table 3 the attitudes of this segment of the population towards smart meters are shown as a proportion of all consumers: A combined 13% said they would either request or accept a smart meter in the next 6 months; whilst 16% they would be unlikely to accept a smart meter if offered and 5% of respondents were indifferent (i.e. said they were not sure if they would request or accept a smart meter in the next 6 months).

Approach to measuring non-owners’ attitudes to smart meters (see also: Additional Data Tables)

This section outlines how the survey results in the ‘Additional Data Tables’ were used to construct Table 3.

The findings in Table 3 were collated from three questions in the survey: ‘Thinking about your business or organisation, are any of the energy meters that are installed smart meters or advanced meters?’ (Table 4); ‘How likely or unlikely will you be to contact your energy company within the next six months to request a smart meter installation for your business?’ (Table 5); and ‘If you were offered a smart meter installation by your energy company within the next six months, how likely or unlikely are you to accept it?’ (Table 6).

Those in the ‘owns a smart meter’ category are those who reported they have ‘some’ or ‘all’ smart/advanced meters for their business (Table 4). If they answered that they do not own any smart/advanced meters (n= 167), they were asked questions on their likelihood to seek or accept a smart meter. Those who answered positively on their likelihood to request a smart meter (Table 5) fall into the ‘seek’ [a smart meter] category. Those who answered negatively or indifferently were asked whether they are likely to accept a smart meter if offered one (Table 6); if they answered that they would ‘probably’ or ‘definitely’ not accept one, they were categorised as rejectors, i.e. that they are ‘unlikely to take up’ a smart meter. The ‘indifferent’ group comprises those who said they were ‘not sure’ whether they would accept a smart meter if offered one (Table 6).

Sample

The sample for the online survey was gathered via YouGov’s online panel of 497 business owners and energy decision-makers. Quota sampling was used to ensure the inclusion of different business sizes (microbusinesses, small and medium businesses), and both private and public sector organisations. Primary quotas of 50% microbusinesses and 50% non-microbusinesses meant that we oversampled the recruitment of non-micros (which make up less than 50% of sites in scope of the non-domestic smart mandate) to ensure there would be a large enough sample to enable robust analysis at the sub-group level. There were also some loose secondary quotas to ensure sufficient representation of each sub-group (sole traders, microbusinesses, small and medium businesses), at approximately 25% per category. Whilst the microbusiness and non-microbusiness quotas were hard quotas, the quotas at the subgroup level were less stringent and allowed some freedom because of concerns about the impact of exclusion criteria on some groups, such as the commercial premise requirement (i.e. that the business must have a commercial premise rather than a domestic premise). There were also no quotas for public or third sector sites, so the sample size for this group was achieved through natural fallout.   

Fieldwork

Fieldwork for the YouGov survey took place between 27th November 2024 and 12th December 2024.

Weighting

After fieldwork was completed, data was weighted by DESNZ to reflect administrative data held by the department regarding the non-smart, non-domestic population in terms of business/organization size. Business and public sector sites were weighted at 88% and 12% respectively. Within this, microbusinesses, small businesses and medium businesses were weighted at 70%, 20% and 10% respectively. This approach replicates the methodology used in previous consumer segmentation research published in 2023 ^{[footnote 13]}. This ensured both samples had a similar make-up, to enable comparisons to be made between the YouGov survey findings and the segmentation.

Additional Data Tables

Table 4. YouGov Survey Findings, Dec 2024: ‘Thinking about your business or organisation, are any of the energy meters that are installed smart meters or advanced meters?’

	Weighted Count	Unweighted Count	Percentage
Yes, all energy meters are smart/advanced	222	218	44.8%
Yes, some of the energy meters are smart/advanced, some are traditional (non-smart)	107	127	21.5%
No, all energy meters are traditional (non-smart) meters	155	141	31.3%
I’m not sure	12	11	2.5%
Total	496	497	100%

Table 5. YouGov Survey Findings, Dec 2024: ‘How likely or unlikely will you be to contact your energy company within the next six months to request a smart meter installation for your business?’

	Weighted Count	Unweighted Count	Percentage
Definitely would	12	14	7.2%
Probably would	26	24	15.5%
Not sure	30	28	17.7%
Probably not	46	41	27.8%
Definitely not	53	45	31.8%
Total	167	152	100.0%

Base: All that replied ‘No, all energy meters are traditional (non-smart) meters in Table 2 (n= 167)

Table 6. YouGov Survey Findings, Dec 2024: ‘If you were offered a smart meter installation by your energy company within the next six months, how likely or unlikely are you to accept it?’

	Weighted Count	Unweighted Count	Percentage
Definitely would	6	5	4.5%
Probably would	19	20	14.9%
Not sure	24	21	18.8%
Probably not	30	27	23.5%
Definitely not	49	41	38.3%
Total	129	114	100.0%

Base: All that replied ‘Not sure’; ‘Probably not’; or ‘Definitely not’ in Table 3 (n= 129)

1. Non-domestic Research Report - 2024 See Question E1 which asked consumers “Approximately when was the last time your business switched its [gas or electricity] suppliers or contract?” ↩

2. Which requires suppliers to take all reasonable steps to install a smart meter in non-domestic premises wherever a meter is replaced or installed for the first time. ↩

3. Smart Metering Implementation Programme - Cost-Benefit Analysis 2019 ↩

4. Smart_Metering_2025_Costs_and_Benefits_Report.pdf. ↩

5. Smart meters in Great Britain, quarterly update December 2024. ↩

6. The Green Book (2022) - GOV.UK. ↩

7. Smart meters in Great Britain, quarterly update March 2025 - GOV.UK. Table 3. 12% figure is based on SMETS meters across large non-domestic suppliers. ↩

8. Fame - Digital Marketplace. ↩

9. Better regulation framework guidance 2023. ↩

10. Companies House - GOV.UK. ↩

11. Building Energy Efficiency Survey (BEES): overarching report. ↩

12. Business population estimates 2024 - GOV.UK. Calculated using Table 9 of detailed data tables. ↩

13. Non-Domestic Smart Meter Consumer Segmentation – GOV.UK (2023). ↩