diff --git a/substrate-node/pallets/pallet-smart-contract/src/lib.rs b/substrate-node/pallets/pallet-smart-contract/src/lib.rs
index fefe01de4..4e9bc4065 100644
--- a/substrate-node/pallets/pallet-smart-contract/src/lib.rs
+++ b/substrate-node/pallets/pallet-smart-contract/src/lib.rs
@@ -802,11 +802,19 @@ impl<T: Config> Module<T> {
                 // We know the contract is using resources, now calculate the cost for each used resource
                 let node_contract_resources = NodeContractResources::get(contract.contract_id);
 
+                let mut bill_resources = true;
+                // If this node contract is deployed on a node which has a rent contract
+                // We can ignore billing for the resources used by this node contract
+                if ActiveRentContractForNode::contains_key(node_contract.node_id) {
+                    bill_resources = false
+                }
+
                 let contract_cost = Self::calculate_resources_cost(
                     node_contract_resources.used,
                     node_contract.public_ips,
                     seconds_elapsed,
                     pricing_policy.clone(),
+                    bill_resources
                 );
                 contract_cost + contract_billing_info.amount_unbilled
             }
@@ -821,6 +829,7 @@ impl<T: Config> Module<T> {
                     0,
                     seconds_elapsed,
                     pricing_policy.clone(),
+                    true
                 );
                 Percent::from_percent(pricing_policy.discount_for_dedication_nodes) * contract_cost
             }
@@ -842,29 +851,32 @@ impl<T: Config> Module<T> {
         ipu: u32,
         seconds_elapsed: u64,
         pricing_policy: pallet_tfgrid_types::PricingPolicy<T::AccountId>,
+        bill_resources: bool
     ) -> u64 {
-        let hru = U64F64::from_num(resources.hru) / pricing_policy.su.factor();
-        let sru = U64F64::from_num(resources.sru) / pricing_policy.su.factor();
-        let mru = U64F64::from_num(resources.mru) / pricing_policy.cu.factor();
-        let cru = U64F64::from_num(resources.cru);
-
-        let su_used = hru / 1200 + sru / 200;
-        // the pricing policy su cost value is expressed in 1 hours or 3600 seconds.
-        // we bill every 3600 seconds but here we need to calculate the cost per second and multiply it by the seconds elapsed.
-        let su_cost = (U64F64::from_num(pricing_policy.su.value) / 3600)
-            * U64F64::from_num(seconds_elapsed)
-            * su_used;
-        debug::info!("su cost: {:?}", su_cost);
-
-        let cu = Self::calculate_cu(cru, mru);
-
-        let cu_cost = (U64F64::from_num(pricing_policy.cu.value) / 3600)
-            * U64F64::from_num(seconds_elapsed)
-            * cu;
-        debug::info!("cu cost: {:?}", cu_cost);
-
-        // save total
-        let mut total_cost = su_cost + cu_cost;
+        let mut total_cost = U64F64::from_num(0);
+        
+        if bill_resources {
+            let hru = U64F64::from_num(resources.hru) / pricing_policy.su.factor();
+            let sru = U64F64::from_num(resources.sru) / pricing_policy.su.factor();
+            let mru = U64F64::from_num(resources.mru) / pricing_policy.cu.factor();
+            let cru = U64F64::from_num(resources.cru);
+    
+            let su_used = hru / 1200 + sru / 200;
+            // the pricing policy su cost value is expressed in 1 hours or 3600 seconds.
+            // we bill every 3600 seconds but here we need to calculate the cost per second and multiply it by the seconds elapsed.
+            let su_cost = (U64F64::from_num(pricing_policy.su.value) / 3600)
+                * U64F64::from_num(seconds_elapsed)
+                * su_used;
+            debug::info!("su cost: {:?}", su_cost);
+    
+            let cu = Self::calculate_cu(cru, mru);
+    
+            let cu_cost = (U64F64::from_num(pricing_policy.cu.value) / 3600)
+                * U64F64::from_num(seconds_elapsed)
+                * cu;
+            debug::info!("cu cost: {:?}", cu_cost);
+            total_cost = su_cost + cu_cost;
+        }
 
         if ipu > 0 {
             let total_ip_cost = U64F64::from_num(ipu)
diff --git a/substrate-node/pallets/pallet-smart-contract/src/tests.rs b/substrate-node/pallets/pallet-smart-contract/src/tests.rs
index 2f1e7c7e1..d50d0b647 100644
--- a/substrate-node/pallets/pallet-smart-contract/src/tests.rs
+++ b/substrate-node/pallets/pallet-smart-contract/src/tests.rs
@@ -1130,7 +1130,7 @@ fn test_create_rent_contract_and_node_contract_excludes_node_contract_from_billi
             Origin::signed(bob()),
             node_id
         ));
-
+        
         assert_ok!(SmartContractModule::create_node_contract(
             Origin::signed(bob()),
             1,
@@ -1138,12 +1138,13 @@ fn test_create_rent_contract_and_node_contract_excludes_node_contract_from_billi
             "hash".as_bytes().to_vec(),
             0
         ));
+        push_contract_resources_used(2);
 
         run_to_block(12);
 
         let (amount_due_as_u128, discount_received) = calculate_tft_cost(1, 2, 11);
         assert_ne!(amount_due_as_u128, 0);
-        check_report_cost(1, 2, amount_due_as_u128, 12, discount_received);
+        check_report_cost(1, 3, amount_due_as_u128, 12, discount_received);
 
         let our_events = System::events()
             .into_iter()
@@ -1164,7 +1165,7 @@ fn test_create_rent_contract_and_node_contract_excludes_node_contract_from_billi
         // Event 2: Node Contract created
         // Event 4: Rent contract billed
         // => no Node Contract billed event
-        assert_eq!(our_events.len(), 3);
+        assert_eq!(our_events.len(), 4);
     });
 }