Meter Operators for business energy customers

Meter Operators (MOPs) are responsible for installing and maintaining electricity meters in commercial properties.

Appointing a Meter Operator is mandatory for businesses with half-hourly electricity meters. However, most businesses fulfil this requirement by having a MOP contract included as part of their business energy tariff.

In this guide, we explain the role of Meter Operators, focusing on what matters most to businesses, including how to save on Meter Operator fees by having a standalone MOP contract.

Here’s what we cover:

What is a Meter Operator
The role of a Meter Operator
How MOP contracts work
Meter Operator pricing
Meter Operators regulations

What is a Meter Operator?

A Meter Operator is a licensed company responsible for installing, maintaining and managing electricity meters at commercial properties. They ensure meters record accurate consumption data and transmit it to your energy supplier for billing.

Meter Operators are often referred to as MOPs, and the formal agreement businesses hold with them is called a MOP contract or Meter Operator agreement.

All businesses with a half-hourly electricity meter must have a MOP contract in place. This is a mandatory requirement set out under the Balancing and Settlement Code. Businesses without a half-hourly meter usually do not need a separate MOP contract, as their energy supplier typically manages the meter directly.

The best business energy suppliers hold a MOP licence, allowing them to perform the operator role directly for their own customers.

The role of a Meter Operator

Meter Operators have two core responsibilities: managing the physical metering equipment at your premises and ensuring it records and transmits consumption data accurately. Below, our experts break this down and explain the main duties of a MOP.

Installation of electricity meters

Meter Operators are responsible for installing new half-hourly meters at commercial properties with a business electricity connection that exceeds 100kVA in Maximum Import Capacity.

They ensure installed meters comply with industry regulations and deliver accurate automatic meter readings every thirty minutes.

For more information, visit our full guide to the installation of business electricity meters.

Maintenance and servicing

Meter Operators carry out regular maintenance to ensure meters function correctly and transmit accurate readings.

Commercial energy meters are generally highly reliable, but MOP regulations require maintenance and servicing at least once every five years.

If the meter malfunctions or fails, the MOP is responsible for diagnosing and resolving the issue at no additional cost under your MOP contract.

Meter upgrades and replacements

Meter Operators manage the replacement of ageing or faulty meters and carry out upgrades where newer equipment is needed to meet industry standards.

This includes fitting advanced meters in preparation for Market-wide Half-Hourly Settlement, which requires all electricity meters to be capable of half-hourly data collection by 2027.

Data communication

Meter Operators install and maintain the communication equipment that sends your meter readings from the meter to your Data Collector. This covers both the physical hardware, such as the modem or SIM-based data connection, and the software systems that automatically transmit readings.

The meter reading data then passes through two further roles before reaching your energy supplier:

Data Collector (DC): Remotely retrieves the half-hourly readings from your meter and validates them for accuracy
Data Aggregator (DA): Aggregates the validated data and forwards it to your energy supplier for billing and settlement

Like Meter Operator appointments, DC and DA services are mandatory for half-hourly meters. If you don’t appoint your own, your energy supplier will appoint defaults and include the charges in your tariff.

The data communication services provided by Meter Operators eliminate the need for businesses to take manual energy meter readings.

Types of meter covered

Meter Operators are responsible for managing a variety of business electricity meter types.

Here are the most common examples:

Half-hourly meters: Designed for non-domestic properties with high business energy consumption, requiring precise and frequent consumption data.
Smart business energy meters: Designed for small business energy customers with moderate energy needs.

Meter Operator appointments are only mandatory for half-hourly electricity meters.

For other meter types, your energy supplier can either manage your meter directly or appoint an independent Meter Operator.

What is a MOP contract and what does it include

A MOP contract, also known as a Meter Operator agreement, is the formal arrangement between a business and its chosen Meter Operator. It sets out the terms under which the MOP will install, maintain and manage the electricity meter at your commercial premises, and ensures your meter data is collected and transmitted correctly throughout the term of the agreement.

A standard MOP contract typically encompasses the following activities by the operator:

Meter installation or upgrade: Fitting a new half-hourly meter, or upgrading an existing meter to meet current industry standards.
Ongoing maintenance and servicing: Regular inspections and repairs to keep the meter working accurately, with a minimum service visit every five years.
Data collection and transmission: Managing the communication equipment that sends half-hourly readings.
Fault diagnosis and repair: Responding to meter malfunctions and resolving issues at no additional cost during the contract term.
Compliance with industry regulations: Ensuring the meter meets the standards set by the Balancing and Settlement Code and other relevant regulations.

The industry standard length for a MOP contract is five years, although shorter terms are sometimes available depending on the Meter Operator.

Meter Operator pricing

There are two ways businesses with half-hourly meters pay for their Meter Operator agreements.

Bundled into energy rates

Most large business energy customers pay for MOP contracts as part of their business electricity rates.

When business energy suppliers provide quotes to businesses with half-hourly meters, two sets of prices are typically offered:

Including MOP fees
Excluding MOP fees, for businesses with a standalone MOP contract

Business electricity quotes that include MOP fees usually have higher daily business electricity standing charges.

Standalone Meter Operator agreement

A standalone MOP contract is a direct agreement between your business and a licensed Meter Operator, separate from your energy supply contract. The charges typically include:

Installation fee (if applicable): A one-time upfront cost for installing or upgrading the meter and ensuring it is correctly configured to communicate data to your supplier.
Annual service fees: An ongoing charge for monitoring and maintaining the meter, ensuring it meets regulatory requirements.
Data collection and communication charges: An ongoing fee covering the cost of transmitting your energy usage data to your supplier.

For most large business energy users, a standalone MOP agreement works out cheaper than paying bundled MOP fees through your energy tariff.

How MOP contracts work

A MOP contract is typically set up when your half-hourly meter is first installed or when you switch business energy suppliers. How it works from that point depends on whether the MOP is bundled into your energy tariff or held as a standalone agreement.

Where the MOP is bundled into your energy rates, it is tied to that specific supply contract. When you switch suppliers, the bundled MOP arrangement ends, and your new supplier appoints a Meter Operator as part of their onboarding process.

A standalone MOP contract works differently. It sits separately from your energy supply, so it continues unchanged when you switch suppliers. Standalone MOP contracts run for a fixed term, usually five years, and will auto-renew at the end of that term unless you provide notice.

Businesses should review their standalone MOP contract before it auto-renews, alongside their business energy contract, to confirm the rates remain competitive.

Meter Operators regulations

The operators of the British national grid and regional distribution network operators rely on the real-time consumption data provided by Meter Operators to balance supply and demand effectively.

Given the vital role played by Meter Operators, they are carefully regulated. In this section, we explain the regulatory framework governing Meter Operators.

Balancing and Settlement Code

The Balancing and Settlement Code (BSC) is a fundamental component in the operation of the energy market in Britain, ensuring:

Balancing supply and demand – Ensures electricity supply matches demand in real time to avoid blackouts or surplus energy.
Settlement of energy imbalances – Manages the financial consequences when generators or suppliers deviate from their contracted energy positions.

Accurate metering data is essential for calculating imbalances and settlements. The BSC directly regulates Meter Operators to ensure accuracy by setting standards for installations, data collection and communications.

The Balancing and Settlement Code is administered by Elexon, a non-profit organisation that governs electricity trading and settlement in Britain.

Ofgem regulation of Meter Operators

Ofgem is the primary energy regulator in the UK, responsible for setting and enforcing rules related to metering and data handling.

Ofgem approves changes to and guides the Balancing and Settlement Code. It also monitors MOP activities to ensure fair practices, consumer protection, and adherence to technical standards.

Unlike commercial electricity and business gas suppliers, Ofgem does not directly license Meter Operators.

Read our full guide to Ofgem’s role in business energy for more information.

Other Meter Operator regulations and standards

The following two additional regulations apply directly to the work of Meter Operators:

Electricity Metering Standards (Accuracy of Meters) Regulations 2006 – Establishes accuracy requirements for half-hourly and other meter types.
General Data Protection Regulation (GDPR) – Requires Meter Operators to secure meter reading data against unauthorised access.

Data management and Meter Operators

Data management is a critical component of the services provided by Meter Operators, who must ensure the accurate and efficient handling of energy consumption data.

Here is a summary of the key responsibilities of Meter Operators in data management:

Data accuracy – MOPs ensure meters are properly calibrated to provide accurate meter readings.
Data collection – MOPs maintain the communication systems used for the remote retrieval of half-hourly meter reading data.
Data transmission – MOPs ensure the accurate and timely transfer of meter data to energy suppliers and Exelon.
Data validation – MOPs ensure the integrity of meter reading data, including flagging anomalies for further investigation.

Meter Operators – FAQs

Below, we answer the most commonly asked questions about Meter Operators.

Who provides MOP contracts?

MOP contracts are provided by licensed Meter Operators. The Association of Meter Operators lists all licensed providers. Most large business energy suppliers, including EDF and E.ON, also offer standalone MOP contracts.

How do I choose a Meter Operator?

You don’t have to choose one yourself. If you don’t appoint a MOP, your energy supplier will appoint one on your behalf and bundle the charges into your business electricity contract. We recommend selecting a Meter Operator from our panel of trusted business energy suppliers that we partner with to provide our business electricity comparison service:

Can I switch my Meter Operator?

Yes. Businesses with a standalone MOP contract can switch at the end of their agreement by giving the required notice, typically three months. If your MOP is bundled into your energy tariff, it will change automatically when you switch suppliers.

Is a MOP the same as an energy supplier?

No, not necessarily. Your energy supplier sells you the electricity your business uses. Your Meter Operator installs and maintains the physical meter that records your consumption. They are separate licensed roles, although some energy suppliers also act as Meter Operators.

What happens if I don’t have a MOP contract?

All half-hourly meters must have a MOP contract in place. If you don’t appoint one, your energy supplier will appoint a Meter Operator on your behalf and add the charges to your business electricity bill.

Do I need a MOP contract for a smart meter?

No. MOP contracts are only mandatory for half-hourly electricity meters. For smart meters and other meter types, your energy supplier manages the meter directly.

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