The Department for Energy Security and Net Zero (DESNZ) has confirmed plans to increase the number of smart meters for non-domestic sites, including pubs.
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From 1 September 2027, energy suppliers will have to make having, or agreeing to have, a smart or advanced meter a condition of taking out a new fixed-term energy contract for qualifying businesses.
Suppliers have been instructed to start communicating the change to customers from 1 January 2027.
Better understanding
The requirement will apply to smaller and medium-sized non-domestic businesses, rather than every commercial property.
The Government said the move was aimed at increasing smart meter use to give businesses better information about how much energy they are using.
Fixed-term energy deals can be cheaper than out-of-contract rates, but suppliers are increasingly requiring businesses to have smart meters to access them, DESNZ added.
The Government expects the changes to increase smart meter coverage among smaller businesses and other non-domestic sites to 88% by the end of 2030, compared with 73% without the new measures.
Businesses and other non-domestic customers could save up to £194m on energy over the scheme’s 10-year appraisal period, while DESNZ estimated the policy could deliver total benefits of up to £340m.
Major concern
DESNZ added businesses would save money through better information about their energy use, though some costs could be passed on to customers.
It comes as energy remains a major cost concern for pub operators, with businesses continuing to face pressure from energy bills alongside rising operating costs.
In August, Nationwide Energy told The Morning Advertiser (The MA) wholesale gas and power prices had climbed again, making cheaper energy renewals less likely for operators.
The policy is being overseen by DESNZ minister Martin McCluskey MP, who is responsible for smart meters and non-domestic buildings.
A full Government response to the consultation was published on 1 September 2026, alongside its final impact assessment and guidance for businesses and energy suppliers.
