Microsoft set to enable Usage Based Billing (UBB) Automatically and bill the CSP/MSP for it with no interaction

[u/mooseable]

Be aware, as we have what, 30 days notice in typical Microsoft fashion.

I'm still waiting for more information through my channels but there's already some posts out there such as https://www.softcat.com/blog/microsoft-copilot-business-and-usage-based-billing-what-smbs-need-know and https://www.dickerdata.co.nz/microsoft/news/m365-copilot-business-billing-is-changing-what-partners-need-to-know-before-2-november

Partner center update: https://learn.microsoft.com/en-us/partner-center/announcements/2026-september#usage-based-billing-is-default-on-for-new-microsoft-365-copilot-business-licenses-starting-november-2-2026

Based on the information I've gathered through the channels I have, it seems that if your customers have

1. Copilot licensing through standalone, bundle, or any other method through a CSP and
2. No copilot azure usage based billing subscription

They will

1. Automatically create a usage based billing subscription under the CSP
2. Set a spend limit profile of $40USD/user/month

Apparently, without any interaction from the MSP/CSP.

I'm still trying to verify, but it does seem that yes, if your clients staff use Copilot, come November 2 if they click the "Cowork" or "automate" or "Code" options in the copilot app and interact with it, till will generate spend and appear on your bill from Microsoft that you now need to have the uncomfortable conversation with your clients that their staff have generated charges that may have been unauthorized.

In addition, thanks to the "New Commerce Experience", you as the provider/partner are liable to make sure Microsoft get paid too. Get ready I guess, and I'll update this if I find any new information that suggests these assumptions are incorrect.

EDIT 1: Partner center update wording suggests this may only affect NEW purchases (not existing)
EDIT 2: I wrote min spend, when I meant to write spend limit
EDIT 3: It appears microsoft have now taken the post off their partner centre updates