Can Holiday Parks and Marinas Recover Smart Metering Costs? Understanding Ofgem's Electricity Resale Guidance
One of the biggest misconceptions in the leisure and marina sectors is that any investment in smart metering, utility infrastructure or billing technology must be absorbed entirely by the site operator.
In reality, many operators already structure electricity resale charges to recover the reasonable costs associated with supplying electricity to guests, residents and berth holders, provided charges remain fair, transparent and are not used for profiteering.
For holiday parks, campsites and marinas, this is an important distinction.
Because supplying electricity involves much more than simply paying an energy bill.
The Hidden Cost of Supplying Electricity
Whether you operate a holiday park, touring site, campsite or marina, delivering electricity to customers requires ongoing investment in:
Electrical distribution infrastructure
Metering equipment
Smart metering systems
Billing and payment platforms
Communications networks
Maintenance and compliance
Administration and customer support
Historically, many operators have absorbed these costs while relying on manual readings, flat-fee charging or outdated utility management systems.
But as electricity demand increases, particularly with the rise of electric vehicles, electric heating and shore power usage, this approach is becoming increasingly difficult to sustain.
What Does Ofgem Say?
The purpose of Ofgem's Maximum Resale Price (MRP) framework is to protect consumers from unfair energy resale practices.
Under the current guidance, the maximum resale price is generally limited to the amount paid by the reseller for the electricity supplied. Ofgem's official guidance explains the rules around electricity resale and consumer protections in more detail.
However, consumer protection does not mean site operators should be prevented from investing in better infrastructure.
Metpow's response to Ofgem's 2025 Maximum Resale Price consultation highlighted that the framework should continue to support the recovery of legitimate capital and operational expenditure associated with smart metering and low-carbon infrastructure, while maintaining fair outcomes for consumers.
This includes costs associated with:
Smart metering hardware
Meter installation
IoT communication systems
Billing and software platforms
Compliance systems
Ongoing maintenance and operational management
The principle is simple:
Charges should be transparent, proportionate and linked to the genuine cost of providing electricity services.
Why Ofgem Is Reviewing the Rules
The energy market has changed significantly since the current MRP framework was introduced.
Smart metering, EV charging, battery storage, shore power systems and flexible energy tariffs are now becoming increasingly important across holiday parks, campsites and marinas.
Recognising this, Ofgem launched a review of the Maximum Resale Price framework to examine whether the existing rules continue to deliver fair outcomes for consumers while supporting investment in modern energy infrastructure.
Consumer groups including Consumer Scotland and Citizens Advice have also contributed to the review, highlighting the importance of transparency, accurate billing and wider adoption of smart metering technologies.
Further reading:
Consumer Scotland Response to Ofgem Consultation
The fact that Ofgem is actively reviewing the framework demonstrates that this is not a niche issue. It is a significant challenge affecting hundreds of thousands of consumers and thousands of operators across the UK.
Industry Bodies Are Calling for Greater Investment Support
Metpow is not alone in highlighting the challenge of funding modern energy infrastructure.
British Marine, the trade association representing marinas and the wider marine industry, recently responded to Ofgem's consultation and raised many of the same concerns around electrification, shore power infrastructure and future investment requirements.
As marinas invest in:
Shore power upgrades
Smart metering systems
Electric vessel charging
Energy management technology
the industry is increasingly recognising that operators need a clear and transparent framework that both protects consumers and supports infrastructure investment.
This mirrors Metpow's own position that accurate metering, transparent billing and modern utility systems are essential if the leisure and marine sectors are to continue modernising while maintaining fair outcomes for customers.
British Marine's response demonstrates that this is not simply a technology provider's view. It is a challenge being recognised across the wider marina industry.
You can read British Marine's response here.
Why This Matters for Holiday Parks and Marinas
Many operators assume the only recoverable cost is the electricity itself.
But modern utility management is about much more than passing through a supplier bill.
Accurate metering, automated billing, customer self-service and real-time monitoring all require infrastructure and ongoing operational support.
Without a mechanism to recover those costs, investment in modern utility systems becomes harder to justify.
This is one of the reasons many sites continue to rely on outdated processes.
According to Metpow's consultation response, a significant proportion of electricity resale transactions across campsites and marinas still rely on analogue meters, estimated billing or non-transparent charging methodologies.
The consultation also highlighted a lack of:
Compliant sub-metering
Transparent billing
Clear CAPEX recovery mechanisms
Modern smart metering infrastructure
Consistent application of resale rules
These shortcomings create problems for both operators and end users.
Smart Metering Creates a Fairer Model
The objective should not be to charge customers more.
It should be to charge them more accurately.
Modern smart metering allows operators to:
Bill based on actual usage
Provide transparent consumption data
Reduce disputes
Eliminate estimated charging
Improve visibility across the site
Recover electricity and operational costs fairly
Metpow's consultation response highlighted that smart metering can reduce billing errors and improve pricing accuracy across leisure and marina environments. In campsites alone, billing inaccuracies can be reduced by between 8–20%, while marinas can see improvements of between 10–25%.
For customers, that means greater transparency.
For operators, it means improved cost recovery and reduced administrative burden.
The Role of Per-kWh Charging
One of the most transparent approaches is a usage-based charging model.
Rather than relying on flat fees or estimated allocations, electricity charges can be structured around actual consumption using a clearly defined per-kWh rate.
This creates a straightforward and auditable mechanism that can help recover:
Energy supply costs
Infrastructure investment
Metering costs
Software and billing systems
Ongoing administration
Provided the methodology is transparent and reasonable, this approach aligns with the principles underpinning Ofgem's electricity resale framework.
More importantly, it creates fairness.
Users pay for what they consume.
Operators recover legitimate costs associated with providing the service.
And everyone benefits from greater transparency.
Why Metpow Supports This Approach
At Metpow, we believe better infrastructure leads to better outcomes for everyone.
The industry needs accurate, compliant smart metering and transparent billing standards, but operators also need a fair pathway to recover the costs of investing in those systems.
Importantly, calls for clearer investment pathways are increasingly coming from across the sector. Both Metpow and British Marine have highlighted the importance of ensuring operators can continue investing in smart metering, electrification and low-carbon infrastructure while maintaining transparent and fair charging practices.
When operators can recover legitimate infrastructure and operational costs fairly:
Guests and berth holders receive more accurate bills
Disputes are reduced
Revenue recovery improves
Investment in modern infrastructure increases
Sites become more efficient and sustainable
Metpow's platform supports this transition by helping holiday parks, campsites and marinas:
Automate meter readings
Improve billing accuracy
Provide customer self-service tools
Gain real-time visibility of usage and revenue
Implement transparent usage-based charging models
Reduce operational workload
The Industry Is Moving Towards Greater Transparency
Across the leisure and marina sectors, there is growing recognition that accurate metering, transparent billing and modern utility management are essential for both operators and consumers.
Smart metering can reduce billing inaccuracies, improve transparency and create a clearer pathway for investment in low-carbon infrastructure and modern utility systems.
As Ofgem's review progresses, operators should be thinking beyond simple energy resale and focusing on how technology can improve operational efficiency, customer experience and long-term sustainability.
The sites that invest in visibility, automation and accurate utility management today will be best positioned for the future.
Looking Ahead
Electricity demand across holiday parks, campsites and marinas is only going to increase.
EV charging, electric heating, battery storage and marina electrification are rapidly becoming part of everyday operations.
The operators that thrive will be those that move beyond manual readings, estimated billing and outdated utility systems towards transparent, usage-based utility management.
Current Ofgem guidance already provides a framework that supports fair and transparent electricity resale.
The ongoing review now presents an opportunity to provide even greater clarity around smart metering, low-carbon infrastructure and modern utility management.
For operators considering investment today, that should be encouraging.
Because smart metering is no longer simply a billing tool.
It's becoming a fundamental part of running a more efficient, transparent and future-ready holiday park or marina.
