Ofgem AI Reg Lab – High-Level Findings for Licensees and Stakeholders

Ofgem has published the findings from its July 2026 AI Regulatory Lab, providing valuable insight into how artificial intelligence can be safely and effectively used within the energy sector. The initiative brought together industry participants and AI experts to explore the regulatory, operational and governance considerations associated with AI-enabled decision-making, particularly in areas linked to investment and capital allocation within critical national infrastructure.

For AMO members, the findings reinforce that AI should be viewed as a tool to support human decision-making rather than replace it. Ofgem emphasises that accountability for decisions with financial, operational, safety or regulatory consequences must remain with individuals and organisations, regardless of the level of automation involved. 

A key message throughout the report is the importance of explainability, transparency and data quality. Organisations adopting AI are encouraged to ensure that recommendations can be understood, challenged and audited, while maintaining robust data governance processes. Ofgem warns that poor-quality data can undermine AI outcomes and may amplify existing issues rather than resolve them.

The report also highlights the need to embed AI within existing governance, assurance and risk management frameworks. Higher-risk applications should be subject to greater validation and human oversight, with strong governance focused on decision outcomes as well as model performance. Ofgem notes that successful AI adoption depends as much on organisational capability, skills and trust as it does on the technology itself. 

For the metering sector, the findings provide a useful framework for organisations considering AI applications in areas such as asset management, operational planning, field service optimisation, risk assessment, customer support and data analysis. As digitalisation and data volumes continue to grow, the report serves as a timely reminder that responsible AI deployment requires clear accountability, effective governance and a continued focus on consumer outcomes. 

Ofgem has confirmed that the lessons from the AI Reg Lab will inform its ongoing approach to AI regulation and guidance, signalling the growing importance of responsible AI adoption across the energy industry. 

 

AI Reg Lab: July 2026 | Ofgem

 

Ofgem to Administer Bill Discount Scheme for Communities Hosting New Electricity Infrastructure

Ofgem has been appointed by the Government to administer a new Bill Discount Scheme that will provide financial benefits to households located near new electricity transmission infrastructure. The initiative forms part of the UK’s wider strategy to deliver Clean Power by 2030 and accelerate progress towards Net Zero.

Under the scheme, eligible households could receive discounts of up to £250 per year on their energy bills. The Government intends for the first payments to be made in early 2027, recognising the important role communities play in hosting infrastructure required to support the transition to a low-carbon energy system.

The announcement reflects the growing need to expand Great Britain’s electricity transmission network to connect renewable generation, improve energy security and meet increasing electricity demand. By ensuring local communities share in the benefits of national infrastructure projects, policymakers hope to support the delivery of critical investments needed for the UK’s Net Zero ambitions.

For AMO members, particularly those with an interest in Net Zero and the future energy landscape, the scheme demonstrates how Government and regulators are seeking to balance infrastructure delivery, consumer engagement and community benefit. While not directly impacting metering operations, it represents another important policy development supporting the wider decarbonisation of the energy sector.

 

Ofgem Energy Redress Scheme Reaches £250 Million Milestone

Ofgem has announced that its Energy Redress Scheme has now distributed a record £250 million to support energy consumers, helping more than one million customers across Great Britain since the scheme was established in 2018. The funding is derived from payments made by energy companies that have breached regulatory obligations, ensuring that money recovered through enforcement activity is reinvested for consumer benefit.

To date, the scheme has funded 887 projects, delivering practical assistance including fuel vouchers, energy efficiency advice, support for vulnerable households and innovative community energy initiatives. Funding has also enabled the development of community-owned renewable energy projects, helping to address fuel poverty whilst supporting the transition to a cleaner energy system.

Since 2020, Ofgem reports that more than £500 million has been returned to consumers through a combination of compensation payments, fines and voluntary redress contributions. Recent enforcement actions contributing to the fund include payments from British Gas following prepayment meter compliance failures and National Grid Electricity Transmission in relation to asset maintenance obligations.

The announcement reinforces Ofgem’s continued focus on consumer protection, regulatory compliance and delivering positive consumer outcomes. While the Energy Redress Scheme operates primarily as a consumer support mechanism, it demonstrates the increasing importance Ofgem places on ensuring energy market participants meet their obligations and that failures result in tangible consumer benefit. For metering organisations, the initiative highlights the broader regulatory emphasis on vulnerability support, customer protection and maintaining trust in the energy system.

Executive Summary – RECCo Annual Report 2025/26: Key Messages for AMO Members

The Retail Energy Code Company (RECCo) has published its 2025/26 Annual Report, highlighting a year of strong operational delivery, positive outcomes for industry stakeholders, and continued preparation for significant market change. As RECCo approaches five years of live operation, the report demonstrates how it has maintained reliable REC services whilst supporting major industry initiatives, including Energy Code Reform, market digitalisation, and preparation for the transition to the licensed Code Manager model. 

What Matters Most for Metering

For meter operators and the wider metering industry, the report reinforces the importance of a stable and effective code framework during a period of significant change. RECCo reported that REC service providers achieved 96% of their KPIs, with £120,000 returned to industry through performance credits, demonstrating a continued focus on service quality, accountability and value for market participants.

The report also highlights ongoing work supporting market digitalisation and Energy Code Reform, both of which will have a direct impact on metering processes, data flows, consumer interactions and future market arrangements. RECCo’s continued development towards becoming the licensed REC Code Manager from November 2026 provides additional confidence that governance arrangements are evolving to support future market needs.

Energy Theft and Revenue Protection

Of particular interest to AMO members is the continued focus on energy theft prevention and enforcement. The report highlights global recognition for the Energy Theft Tip-Off Service and the successful pilot of the Energy Theft Enforcement Service. RECCo also strengthened support for theft detection activities and is continuing to develop more data and insight-led approaches to tackling energy theft across the industry.

These initiatives support safer working environments for field staff whilst improving collaboration across suppliers, meter operators, revenue protection organisations and enforcement partners. 

Safety Considerations

Although the report is primarily focused on governance and market delivery, several of the highlighted initiatives contribute directly to safety outcomes. Improved energy theft detection, enhanced enforcement arrangements, and greater industry collaboration help reduce risks associated with meter tampering, unsafe installations and dangerous electrical conditions encountered in the field. The continued development of learning resources and industry capability in energy theft investigations also supports safer and more consistent operational practices. 

Looking Ahead

RECCo’s priorities for the coming year include supporting Energy Code Reform, advancing digitalisation programmes, and preparing for the introduction of licensed code management arrangements. For AMO members, these developments reinforce the need for continued engagement with evolving industry governance, data-sharing arrangements, consumer protection initiatives and energy theft reduction programmes. The report demonstrates a strong commitment to delivering value for consumers whilst ensuring the retail energy market remains fit for the future. 

Source: RECCo Annual Report 2025/26 – Delivery Today, Preparing for the Future. 

Government Action to Reduce the Impact of Gas Prices on Electricity

The Government has announced a package of measures to reduce the influence of volatile gas prices on electricity prices in Great Britain, with the stated aim of protecting households and businesses from future energy price shocks. While the measures are primarily focused on electricity generation and wholesale pricing, they have important downstream implications for energy consumers, suppliers, and the wider system in which meter operators play a critical role.

At present, gas continues to set the wholesale electricity price around 60% of the time, despite renewables and nuclear providing a growing share of generation. As a result, fluctuations in international gas markets directly impact electricity bills, even where the underlying cost of generation has not changed. This results in bill volatility that consumers often struggle to understand, and which feeds through supplier pricing, billing complexity, and consumer trust—issues that directly affect AMO members operating at the customer interface.

To address this, the Government is strengthening the Electricity Generator Levy (EGL), increasing the marginal tax rate on excess revenues from 45% to 55% from July 2026 for non‑CfD renewable and nuclear generators. This is intended to ensure that windfall profits arising during periods of high gas prices are more effectively recycled to support households and businesses facing higher energy costs, rather than remaining within the generation sector.

In parallel, the Government plans to introduce a new voluntary Wholesale Contract for Difference (CfD) for legacy renewable generators, with the first auction expected in 2027. This mechanism aims to move a greater proportion of electricity generation onto long‑term, fixed‑price contracts, reducing exposure to gas‑driven wholesale price volatility. Around 30% of Britain’s electricity supply is currently estimated to remain exposed to gas‑set prices, and these reforms are intended to materially reduce that exposure over time.

For AMO members, these measures are significant in several respects. Greater price stability at the wholesale level should support more predictable retail pricing and billing structures, potentially easing consumer confusion and complaint volumes during energy price shocks. Over time, reduced price volatility may also lower pressure on emergency policy interventions and short‑term customer support mechanisms, supporting a more stable operating environment for suppliers and metering providers.

More broadly, the reforms align with the Government’s clean energy mission to accelerate the transition to low‑carbon power, strengthen energy security, and ensure consumers see the benefits of cheaper renewable generation reflected in their energy bills. AMO will continue to monitor the detailed design and implementation of these measures to assess their practical impact on metering operations, consumer outcomes, and the wider energy market framework.

Decisive action to break influence of gas on electricity prices – GOV.UK

IGEM/IG/1 Edition 2 – Supplement 1 (Edition 2): Non‑domestic Training Specification

IGEM has published IGEM/IG/1 Edition 2 – Supplement 1 (Edition 2), setting out updated training requirements for those working within the non‑domestic gas utilisation sector. The specification aligns with the Health and Safety at Work Act and the Gas Safety (Installation and Use) Regulations and is intended to provide a consistent, industry‑approved framework for developing and evidencing competence.

The updated specification applies to new entrants, those extending their scope of work, and individuals seeking optional re‑certification. It introduces a structured pathway beginning with generic core competence, followed by progression into sector‑specific specialisms, including metering, heating, catering, laundry, and process or plant installations.

Training requirements cover both off‑site learning—including technical knowledge, legal duties, and performance criteria—and supervised on‑site work experience, with minimum guided learning hours defined for each pathway. Learners are required to gather on‑site evidence before progressing to ACS assessment and Gas Safe registration, ensuring practical competence is achieved prior to independent working.

This edition strengthens generic core competence requirements and introduces several key updates of relevance to AMO members. Tightness testing and purging to IGEM/UP/1A is now mandatory for all learners, with an optional route to include IGE/UP/1. A limited‑scope pipework installer pathway has also been introduced, supporting proportionate training for specific work activities while maintaining safety standards.

The specification has been facilitated by IGEM and Energy & Utility Skills and approved through IGEM’s technical governance framework, with extensive industry involvement across employers, certification bodies, and training providers. It is intended to support safe, compliant delivery of non‑domestic gas work across all relevant sectors, including gas metering.

AMO members involved in non‑domestic metering, training, or workforce development may wish to review the specification to understand its potential implications for competence frameworks, training provision, and future skills requirements.

The document is available as a free download from the IGEM website.

Smart Metering: From Installations to Infrastructure

Smart metering is no longer simply a rollout programme. It is evolving into a long‑term national service, central to how the UK’s energy system operates, how consumers interact with their energy use, and how the transition to a smarter, more flexible grid is delivered.
 
The UK’s smart metering programme has entered a new phase. From 2026, national policy moves decisively beyond large‑scale installation targets and places greater emphasis on the long‑term operation, maintenance, and performance of smart gas and electricity meters as part of the country’s critical energy infrastructure. This reflects the reality that smart meters are now embedded across much of the housing stock and must be managed as enduring assets rather than short‑term delivery outputs.
With most households already equipped with smart meters, the post‑2025 framework shifts attention toward reliability, security, and consumer experience. The priority is ensuring that meters continue to operate effectively throughout their lifespan, provide accurate data, and support consumers to engage confidently with their energy use. Alongside this, the policy supports a more stable and sustainable approach to installations, upgrades, replacements, and fault resolution—avoiding the disruption, inefficiency, and workforce instability associated with stop‑start delivery models.
 
A key milestone in this transition is the end of the previous installation targets in December 2025. These targets are followed by updated regulatory obligations confirmed in early 2026, which introduce a more flexible, outcomes‑focused approach. From this point onwards, energy suppliers and delivery partners are required to take “all reasonable steps” to complete remaining installations, maintain system performance, and address issues such as meters not operating in smart mode, rather than meeting fixed annual quotas.
Looking ahead to 2030, the government’s objective is for the vast majority of homes to have a functioning smart meter, supporting accurate billing, flexible energy use, and a more resilient and responsive energy system. Success in this next phase will be measured less by installation numbers and more by quality, trust, resilience, and long‑term value for consumers and the energy system as a whole.

 

Smart metering policy framework post 2025 – GOV.UK

DESNZ Publishes Version 1 of Smart Metering Product Issue and Incident Resolution Guidance

The Department for Energy Security and Net Zero (DESNZ), through the Smart Metering Implementation Programme (SMIP), has released Version 1.0 of the Smart Metering Product Issue and Incident Resolution Guidance, marking an important milestone in strengthening system‑level management of product and safety‑related issues across the smart metering programme.

The guidance provides a clear, proportionate framework for how significant, consumer‑impacting product issues or procedural incidents should be identified, escalated, communicated, and managed across the industry. It is intended to support the safe and effective rollout and ongoing operation of smart meters, while protecting consumer safety, confidence, and trust.

Version 1.0 has been developed in response to a Safety Advisory Group (SAG) action for SMIP to review and enhance existing arrangements for handling emerging product and safety issues. The aim was to improve clarity and consistency across industry participants, recognising the complexity of multi‑party delivery and the need for aligned responses where issues have potential system‑wide implications.

A key feature of the guidance is its emphasis on early and proportionate notification. It encourages timely escalation of issues that may affect consumer safety or confidence, even where technical investigation is still underway, helping to avoid delays that could increase risk or undermine public trust.

The guidance also focuses strongly on coordination and consistency of communications, recognising that fragmented or unaligned messaging across suppliers, networks, manufacturers, and metering agents can lead to confusion for consumers and stakeholders. It sets expectations for collaboration on consumer messaging and media handling, with DESNZ acting as a central coordination point where appropriate.

Clearer arrangements are set out for industry coordination and escalation, including when SMIP may convene relevant parties and stakeholder groups to support effective resolution of multi‑party issues. While responsibility for remediation remains with the impacted organisations, DESNZ maintains an oversight role to ensure issues are addressed proportionately and in a timely manner, particularly where inconsistent approaches could create further harm or uneven consumer experience.

Importantly, Version 1.0 places increased emphasis on learning and prevention. Beyond immediate remediation, the guidance establishes a mechanism for capturing anonymised lessons learned and sharing good practice across the programme, supporting continuous improvement and reduction of future risks rather than a sole focus on reactive response.

The guidance has been developed iteratively, informed by operational experience and extensive industry engagement. A draft was discussed at the Smart Meters Operations Group (SMOG) in December 2025, followed by targeted engagement with industry bodies, including representatives from the Energy & Utilities Alliance (EUA) and the UK Metering Forum (UKMF). Subsequent refinements addressed feedback on the scope of security‑related incidents, alignment with existing reporting frameworks, and sensitivities around the handling and onward sharing of commercially or contractually sensitive information.

The final Version 1.0 document was recirculated to SMOG members in March 2026 for sense‑checking, with no further comments raised. DESNZ has confirmed that it is now exploring appropriate options to make the guidance more formally available, while remaining mindful of governance, assurance, and information‑handling considerations.

The release of Version 1.0 represents a significant step forward in establishing a credible, system‑level framework for managing smart metering product and safety issues, reinforcing consistency, collaboration, and consumer protection across the programme.

Nominations Now Open for AMO Committee and Forum Leadership Roles

The Association of Meter Operators (AMO) is pleased to announce that nominations are now open for positions on the AMO Committee, as well as for Forum Chair and Vice Chair roles.

These positions are central to the effective governance of the Association and provide members with the opportunity to help shape AMO priorities, influence industry discussions, and contribute to the continued development of metering across Great Britain.

AMO Committee Nominations

The AMO invites nominations from Large, Medium, and Small MEM member organisations for the following Committee roles:

  • AMO Chair
  • AMO Vice Chair
  • Budgetary Officer
  • Committee Members

The AMO Committee plays a vital role in providing strategic direction, oversight, and leadership for the Association, ensuring that it continues to represent the interests of its members and the wider industry effectively.

Forum Chair and Vice Chair Opportunities

In addition to Committee roles, the AMO is seeking members to take on leadership positions across its key industry forums:

  • Electricity Metering Forum (EMF)
  • Gas Metering Forum (GMF)
  • Half Hourly Electricity Metering Forum (HHEMF)
  • Net Zero Forum
  • Health and Safety Forum

Forum Chairs, supported by Vice Chairs, are instrumental in guiding discussions, shaping work programmes, and delivering the objectives of each forum across key industry topics. These roles provide an excellent opportunity for members to contribute their expertise, collaborate with peers, and help influence industry outcomes.

How to Nominate

Members may nominate themselves or a colleague (with their prior agreement). All nominations should be submitted to the amo@gemserv.com by 20 March 2026.

The final vote on Committee appointments and Forum leadership roles will take place at the AMO AGM 2026, to be held in Leamington Spa.

Further details on the roles and responsibilities are available on request, and the AMO team would be pleased to discuss any of the positions with interested members.

 

Launching the AMO Health & Safety Forum

Strengthening safety leadership across the metering sector

The Association of Meter Operators (AMO) is proud to announce the launch of its new Health & Safety Forum — a dedicated platform for collaboration, learning, and leadership on safety and welfare across the energy metering sector.

As the industry continues to evolve, so too do the risks, responsibilities, and expectations placed on organisations and individuals. The AMO Health & Safety Forum has been established to ensure members have the space, support, and collective insight needed to stay ahead of these challenges and continue driving safer outcomes for everyone involved.

Inaugural meeting – 12 March, Birmingham

The first meeting of the Health & Safety Forum will take place on 12 March, kindly hosted at Talan’s Birmingham office. This inaugural session marks the beginning of an important new chapter for the AMO’s work on health, safety, and wellbeing.

A forum built around real-world challenges

The Health & Safety Forum will focus on a broad and relevant range of safety and welfare topics, reflecting both current priorities and emerging risks across the energy system. Areas of focus will include:

  • Safety leadership and culture – strengthening leadership behaviours and embedding positive safety cultures
  • Regulatory engagement – supporting clear, consistent dialogue with regulators and policymakers
  • Standards, guidance, and consistency – promoting aligned approaches and best practice across the sector
  • Data, insight, and learning – sharing intelligence, trends, and lessons learned
  • Workforce competence and capability – supporting safe, skilled, and confident operational teams
  • Public and consumer safety – protecting customers and maintaining trust
  • Collaboration across the energy system – working together across organisational boundaries
  • Future risk and transition readiness – preparing for change, innovation, and the Net Zero transition

By addressing safety holistically — from leadership and systems to people and public impact — the forum will help members move beyond compliance and towards continuous improvement.

Bringing the right voices into the room

Members are strongly encouraged to invite colleagues from operational management and Health & Safety teams to attend the forum. Bringing together operational and H&S perspectives will help ensure discussions are practical, grounded in frontline experience, and focused on solutions that work in the real world.

The forum is designed to be inclusive, constructive, and collaborative — a place where challenges can be shared openly and learning can be accelerated across the membership.

Working together for safer outcomes

Through shared insight, open discussion, and collective leadership, the AMO Health & Safety Forum will play a key role in identifying emerging risks, promoting best practice, and supporting safer outcomes for the workforce, customers, and the wider energy system.

This forum reinforces the AMO’s commitment to health, safety, and wellbeing as fundamental pillars of a strong, responsible, and future‑ready metering sector.

Please RSVP to the AMO team to confirm your attendance.
We look forward to welcoming members and colleagues to the first meeting and to shaping the forum together.