Business energy savings have become crucial with rising electricity rates in UK. For larger organisations, an electricity bill is much more than the cost of units consumed. It often includes hidden costs such as VAT, Climate Change Levy (CCL), standing charges, and an often-overlooked element, MOP contracts. For businesses operating energy intensive facilities such as hotels, data centres or other large commercial premises, understanding and managing MOP contracts can be a tactical way to cut down operational expenses.
In this article we will cover the mysteries of MOP contracts, explain who would require them, how this impacts your bills and most importantly, business energy savings can be easily achieved by optimising them. With the current high market rates and margin squeeze that businesses are experiencing, getting your energy contacts right matters now more than ever.
A Meter Operator Contract (MOP) is essentially a legal requirement for businesses with a half-hourly (HH) electricity meter. It is an essential business electricity contract and the Meter Operator is responsible for everything associated with installation, maintenance, and the communication of consumption data from a half-hourly meter to the supplier and the national grid (the two parties that rely on consumption data).
Half-hourly meters communicate with suppliers every 30 minutes, so they can bill based on actual rather than estimated usage. The meter operator contract typically has a five-year duration, with the utility companies often being responsible for the installation and maintenance of their advanced metering systems. Businesses have the option of procuring the MOP contract either directly or via their electricity supplier.
If your business’s maximum electricity demand is more than 100 kW, you must have a half-hourly settlement meter and a MOP (Meter Operator’s Agreement or contract) in the UK. This applies to large businesses and more energy-dense sectors, such as:
• Hotels and hospitality
• Data Centres and server farms
• Manufacturing and logistics activities
• Supermarkets and large retail units
• Multi-storey offices with heating or cooling systems
Businesses without a valid MOP will generally be placed on default or pass-through, which are variations that often contain inflated fees. The MOP contract pricing is typically bundled with suppliers prices, and many businesses mistakenly pay the costs with revenue margins hidden within the supplier prices and assume that the charges are beyond their control.
MOP Contracts- What is covered?
MOP charges are routinely issued as part of your electricity contract (or singled out as a separate line item). Typically, our clients expect to pay somewhere between £400 and £1,000 per meter per year, dependent on, the provider they deal with, the level of service they require and the amount of communication needed.
MOP charges often include:
• the installation and renting of the meter
• routine maintenance and calibration
• remote communication and response to faults
• data collected about the consumption of the meter passed onto your supplier and the grid
These charges can vary significantly between providers. Many organisations are stuck paying inflated rates because the contract kept rolling-over automatically or they took it for granted that supplier-bundled deals were the only option.
MOP contracts are non-negotiable from a regulatory perspective but the price and structure of the contract is not set when it is not bundled. Companies can save a significant amount of money by reviewing and optimising their MOP agreements. Here are the options:
1. Competitive Tendering
If you obtain a Meter Operator as a standalone service, you can shop around for pricing and services across all available accredited providers instead of relying on suppliers for every deal and service in a bundled package. The odds are that you will get on better terms than you would otherwise in a supplier-contract package.
2. Get Rid of Suppliers’ Margins
Suppliers frequently take a margin on any MOP services included in electricity contracts. If you unbundle the services in order to get a contract directly with a Meter Operator eliminates this supplier margin.
3. Freedom to Agree Contract Terms
Independent agreements for Meter Operator allow you to agree on the length, multiple sites, and data sharing agreements you require to suit your operational needs.
4. Better Data Management
Half-hourly metering provides very granular energy data which can be used to:
• Monitor consumption trends
• Minimise peak demand charges
• Feed back into any building management systems (BMS)
• Support your energy efficiency programmes Good use of this data, can directly reduce business energy bills
At E for Energy, we do more than just compare electricity rates — we can help businesses navigate the entire cost structure, including MOP contracts.
We begin with a full audit of current energy agreements, understanding whether your existing MOP is bundled or not, and whether you’re paying market rates.
Next, we have access to a nationwide network of Meter Operators that are trusted and accredited. We secure competitive quotes from those providers. By unbundling the MOP services in this way, we often save clients money and improve terms.
We put you in a position to use half-hourly metering data to your advantage through our MOP service. By understanding trends revealed in the metering data, we can help you avoid usage in the peak period and enhance load optimisation.
If you are a business owner and your enterprise is expanding, relocating, or changing tenancy, we will ensure that your MOP contract is up-to-date, compliant, and cost-effective at every step of the way.
With E for Energy, you can be confident that you are not just complying with the regulations, but using MOP contracts as a tool to reduce business energy bills and improve performance.
Optimising your MOP contract cost is part of a larger strategy to reduce business energy bills. At E for Energy, we assist clients to navigate these intersecting parts:
| Area | Cost-Saving Opportunity |
| Electricity Unit Rate | Secure lower rates through competitive supplier tendering |
| MOP Contract Cost | Reduce or avoid supplier mark-ups with standalone meter operator contract |
| VAT and CCL Management | Lower tax liabilities by claiming eligible reductions and reliefs |
| Change of Tenancy (CoT) | Prevent rollovers and secure new rates during property changes |
| Meter Installations | Upgrade to HH or smart meters for improved accuracy and billing |
| Energy Data Monitoring | Cut peak-time usage and improve operational efficiency |
By being aware of these parts and how they are interlinked, your business can change from a reactive energy management stance to proactive and cost-effective approach.
A national hotel group reached out to E for Energy for business energy management. We noticed that they bundled their MOP contract with the supplier at a cost of £920 per site, per year. By independently tendering the MOP service, we arranged a direct contract at £590 per site, with an annual reduction of £3960 across ten properties worryingly. We also incorporated the half hourly data with their building management system to enable them to monitor energy usage in real-time, which helped to achieve a 10% saving in their overall energy consumption in just one year. Thus, turning their business energy management dream into a tangible reality.
If your business has half-hourly metering then your MOP contract is not just a regulatory burden, it’s an opportunity for cost savings. At a time when standard rates are volatile and rising operating charges are under pressure, it is essential for businesses to carefully evaluate every line item in their energy strategy. Meanwhile, MOP contracts are just plain signed and forgotten, and they could represent thousands of pounds of unnecessary costs when left unmanaged. With the right expertise, businesses can take back control and reduce expense whilst improving efficiency and compliance.