In short
Smart meters for business are SMETS2 gas and electricity meters that send readings to the supplier automatically over the DCC's national smart network. AMR meters, which Ofgem calls advanced meters, also send readings remotely and suit larger sites. From 1 September 2027, new fixed-term contracts for smaller business premises must include a smart or advanced meter term.
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What a smart meter does for a business
Ofgem describes a smart meter as one that automatically sends your electricity and gas meter readings to your supplier. Its consumer guidance lists these benefits:
- Bills based on accurate readings, not estimates.
- No manual meter readings to take or submit.
- Up-to-date information on your energy use, so you can see where it goes.
- Access to more flexible tariffs, including dual-rate tariffs such as Economy 7 for business.
The current standard is SMETS2 (the second version of the Smart Metering Equipment Technical Specifications). The government decided in 2017 that all suppliers to non-domestic premises should use the Data Communications Company (DCC) to operate SMETS2 meters, so that businesses with smart meters have fully interoperable meters. The DCC's national network links smart meters with the systems of energy suppliers, network operators and energy service companies.
A smart meter can record your use in half-hour periods. Ofgem's licence rules include obligations on suppliers to make that half-hourly consumption data available to smaller business customers with a smart meter, and separate rules on when a supplier may collect detailed data from microbusiness premises and how it must get consent.
What an AMR meter is
AMR stands for automatic meter reading. An AMR meter records your use and sends the readings to the supplier remotely. Ofgem's licence rules call these advanced meters: meters that provide measured gas or electricity consumption for multiple time periods and give the supplier remote access to that data. Ofgem notes they have a lower minimum level of functionality than smart meters.
AMR meters are common on mid-sized and larger business premises, for both gas and electricity. Since 6 April 2014, Ofgem's rules have required suppliers to supply larger non-domestic sites (electricity profile classes 5 to 8 and 00, and gas sites using more than 732 MWh a year) through an advanced meter, unless they cannot install one despite all reasonable steps. Many of those electricity sites are now half-hourly metered.
Smaller sites can have advanced meters too. Government rules let suppliers offer businesses other than microbusinesses, at sites covered by the smart meter rollout, a choice between an advanced meter and a smart (SMETS) meter. A supplier that offers an advanced meter must also offer a smart one and explain the differences.
Smart meter vs AMR meter
Both meters stop the need for manual readings. The differences are in how they communicate, what they work with and which sites have them.
| Smart meter (SMETS2) | AMR (advanced) meter | |
|---|---|---|
| How readings travel | Through the national smart network run by the DCC | Remotely to the supplier or its data collector |
| Typical sites | Smaller business premises (electricity profile classes 3 and 4, gas under 732 MWh a year) | Larger and mid-sized sites, including half-hourly electricity supplies |
| Data detail | Can record half-hourly use | Records use for multiple time periods; half-hourly on half-hourly supplies |
| Rules that apply | Smart meter rollout duties and the Consolidated Metering Code of Practice | Advanced metering rules for larger sites |
| After a change of supplier | Suppliers to business premises use the DCC to operate SMETS2 meters, so the meter is designed to stay smart | Depends on the meter and its data arrangements: check with the new supplier |
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Does my business have to have a smart meter?
Until now the smart meter rollout has placed duties on energy suppliers rather than businesses. That is changing for smaller sites. Government guidance on supplier obligations, updated in September 2026, sets out the current position:
- From 1 September 2027, when a supplier agrees a new fixed-term contract for smaller business premises (electricity profile classes 1 to 4, gas under 732 MWh a year), the contract must include a term that you have, or agree to have, a smart or advanced meter there.
- From 1 January 2027, suppliers must start explaining the change to business customers, and by 1 September 2027 they must comply with a new consumer protection code for these contracts.
- When a meter is replaced or fitted for the first time, suppliers must take all reasonable steps to install a smart meter, at business premises as well as homes.
- Microbusinesses must be offered a smart (SMETS) meter by their supplier; other businesses at smaller sites may be offered a choice of smart or advanced meter.
- Larger premises should already be on an advanced (AMR) or half-hourly meter under Ofgem's advanced metering rules.
- Older Radio Teleswitch (RTS) meters are no longer supported, according to Ofgem, which advises anyone who still has one to contact their supplier about a new smart meter.
Installations at smaller sites follow the Consolidated Metering Code of Practice, which has replaced the earlier smart metering installation code. For microbusinesses it includes tailored energy efficiency advice at a suitable point in the installation, reasonable scheduling of the visit, and notice in advance of any relevant charges.
Some tariffs also need a particular meter: multi-rate and time-of-use tariffs need a meter that can record use by time. If you are offered a smart meter, ask the supplier what it will install, how readings and data will be used, and whether any charge or contract condition applies at your site. Ofgem's smart meter help page explains what to do if a smart meter stops working.
Changing supplier with a smart or AMR meter
Having a smart or AMR meter does not stop you changing supplier, but it is worth checking how the meter will be read afterwards.
- Find out what you have. Your bill, supplier or meter will tell you whether it is a SMETS2 smart meter, an AMR meter or a half-hourly meter.
- Ask the new supplier how it will read the meter. SMETS2 meters connect through the DCC's network, which suppliers use to read them. AMR meters depend on the data arrangement in place, which may need to change when the supplier changes.
- Check the meter operator arrangement. On half-hourly and some AMR sites, a meter operator contract may be in your name and needs to carry on or be replaced.
- Take a reading on the change date if you can, as a record for both final and opening bills.
For comparing offers and changing supplier, see switching supplier on our sister site. We can help you gather the meter details any new supplier will ask for.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
Using smart and AMR data in your business
Automatic readings are only the start. The detailed data a smart or AMR meter records can help you understand when and where energy is used:
- Daily and weekly patterns, such as heating or equipment left running overnight or at weekends.
- Multi-site comparisons, putting similar premises side by side on the same basis.
- Tariff fit, showing whether a multi-rate tariff would match the times you actually use electricity.
- Budgeting, giving you actual monthly consumption to plan with rather than estimates.
Getting the data is your right. Since 1 December 2022, business customers of any size, or a third party they nominate, can ask their supplier for up to 12 months of historic smart or advanced meter data free of charge, and since 1 October 2024 suppliers must give smaller business customers with smart or advanced meters free access to their energy use information, for example through an app or online tool. Fidelity Energy offers half-hourly reporting, bill validation and its Etainabl energy management platform, which brings data from several meters and sites together. We do not promise what the data will show: that depends on your premises.
Accurate billing from automatic reads
The biggest everyday benefit of a smart or AMR meter is that the supplier bills you from actual readings. That matters for a business in several ways:
- Fewer surprises. Estimated bills can drift away from real use and then catch up with a large correction.
- Cleaner records. Actual readings at contract start and end dates make it easier to check final bills and new contracts.
- Better quotes. Suppliers price business energy from your consumption, and actual data supports accurate quotes.
- Checking the bill. Our guide to business energy bills explained shows how readings flow into each line.
If your bills say a reading is estimated even though you have a smart or AMR meter, the meter may not be communicating. Raise it with your supplier, and keep a manual reading as a record in the meantime.
How we can help
Forever Communications acts as an agent introducing businesses to Fidelity Energy, an independent business energy consultancy and broker that offers gas and electricity smart meter installation and meter upgrades, coordinating with suppliers and meter operators. We help you work out what meters you have now, gather the MPANs, MPRNs and serial numbers, and explain what a smart, AMR or half-hourly meter would mean for your tariff options and for contracts agreed after the September 2027 change. Fidelity Energy gets quotes from the suppliers it works with and arranges the supply contract you choose. Your supply contract is with the energy supplier.
We do not promise installation dates or costs: those depend on the supplier, the meter and the site. Read how we work with Fidelity Energy for how everyone is paid. Want a smart or AMR meter at your business premises, or a quote for the supply? Contact us.
How Forever Communications helps with business gas and electricity
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements with the suppliers on its panel. We are not an energy supplier, and neither is Fidelity Energy.
- Make sense of your bills: we can help you read unit rates, standing charges, meter details and the other costs on your invoices
- Like-for-like quotes: we help you gather your meter numbers, consumption and contract end dates so suppliers quote on the same basis
- The right tariff type: we can talk you through fixed, flexible and pass-through contracts, green electricity and green gas options before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates when you move premises
- Your choice: you decide which quote, if any, to accept; prices and terms are set by the suppliers and confirmed at quote, including the broker commission
We work with offices, shops, hospitality, landlords, manufacturers and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
Does my business have to have a smart meter?
Not today, but that is changing. From 1 September 2027, a new fixed-term contract for smaller business premises must include a term that you have, or agree to have, a smart or advanced meter. Larger sites must already be supplied through an advanced meter. Some tariffs also need a particular meter, so check the contract terms.
Are smart meters free for businesses?
It depends on the supplier, the site and the contract, so ask before you book. For microbusinesses, the metering code of practice requires notice in advance of any relevant charges. Check whether any charge or contract condition applies at your premises; we can ask through Fidelity Energy when you get a quote.
What is an AMR meter?
AMR stands for automatic meter reading. An AMR meter records gas or electricity use for multiple time periods and sends the readings to the supplier remotely. Ofgem's rules call these advanced meters, and larger business sites must be supplied through one.
What is the difference between a smart meter and an AMR meter?
Both send readings automatically. A SMETS2 smart meter connects through the national smart network run by the DCC. An AMR meter sends data remotely to the supplier or its data collector, has a lower minimum level of functionality than a smart meter, and is used mainly on larger sites.
Can I switch business energy supplier with a smart meter?
Yes. Suppliers to business premises use the DCC network to operate SMETS2 meters, which are designed to be interoperable. With an AMR or half-hourly meter, check how the new supplier will collect the readings and whether a meter operator contract needs to carry on.
Can I get the data from my business smart meter?
Yes. Any business customer, or a third party it nominates, can ask its supplier for up to 12 months of historic smart or advanced meter data free of charge, and smaller business customers must be given free access to their energy use information, for example through an app.
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