The rollout of smart meters across Great Britain has reached a major milestone, with new government statistics revealing that 70% of all gas and electricity meters in homes and small businesses are now smart or advanced devices.

According to the latest quarterly report from the Department for Energy Security & Net Zero, more than 40 million smart and advanced meters were in operation by the end of September 2025. Of these, 37 million are actively operating in smart mode, giving consumers real-time insights into their energy usage and enabling more accurate billing.

Installation Pace Slows as Market Matures

During the third quarter of 2025, large energy suppliers installed 680,000 smart and advanced meters—a figure that marks an 8.2% drop compared to the previous quarter and a 4.7% decrease year-on-year. Analysts attribute this slowdown to the increasing saturation of the market, as the majority of properties have already made the switch.

In the domestic sector, 64% of all meters operated by large suppliers are now smart meters in smart mode, with the figure rising to 70% when including those operating in traditional mode. For non-domestic sites, 59% of meters are smart or advanced, rising to 62% when traditional mode is included.

Supporting a Greener, Smarter Energy System

The government describes the smart meter rollout as a “critical national infrastructure upgrade” that supports the transition to a cheaper, cleaner, and more reliable energy system. Smart meters not only help consumers manage their energy use and reduce bills, but also enable the integration of renewable energy sources and flexible tariffs.

The report highlights that the majority of first-generation (SMETS1) meters have now been migrated to the national Data Communications Company (DCC) network, ensuring that customers retain smart functionality even when switching suppliers.

Key Figures at a Glance

• Total smart/advanced meters installed: 40 million
• Smart/advanced meters in smart mode: 37 million (64% of all meters)
• Domestic smart meters installed in Q3 2025: 650,000
• Non-domestic smart/advanced meters installed in Q3 2025: 26,000
• Decrease in installations vs. Q2 2025: 8.2%
• Decrease in installations vs. Q3 2024: 4.7%

Looking Ahead

With the next quarterly update scheduled for March 2026, the focus is expected to shift from installation numbers to maximising the benefits of smart technology—helping consumers save money, supporting decarbonisation, and enabling a more flexible energy grid.

For more details, visit the https://www.gov.uk/government/collections/smart-meters-statistics.

Ofgem has announced a small increase in the energy price cap for the first quarter of 2026. The change will affect households on default tariffs across England, Scotland, and Wales.

Key Announcement

• Cap increase: From 1 January to 31 March 2026, the price cap will rise by 0.2%, adding around £0.28 per month for an average dual-fuel household.
• Annual bill impact: Typical annual bills for Direct Debit customers will be £1,758.
• Year-on-year comparison: Adjusted for inflation, this is 2% (£37) lower than the same period in 2025.

Why the Change?

The increase is driven by:

• Government policy and operating costs, including funding for projects like the Sizewell C nuclear plant (around £1/month).
• Wholesale energy prices, which have stabilised and fallen by 4% in the past three months, though global volatility remains.

Advice for Consumers

The price cap is a safety net, not necessarily the cheapest option. Ofgem recommends:

• Switching tariffs for better deals.
• Changing payment method: Moving from standard credit to Direct Debit could save around £136 annually.
• Prepayment remains the cheapest method, saving around £47 on average.

Support for Struggling Customers

Energy suppliers must provide:

• Tailored repayment plans.
• Financial assistance and debt advice.

Unit Rates and Standing Charges

• Electricity:
  • 27.69p per kWh
  • Standing charge: 54.75p/day
• Gas:
  • 5.93p per kWh
  • Standing charge: 35.09p/day
    (Rates include VAT and are averages across England, Scotland, and Wales.)

Looking Ahead

Ofgem continues to work with government and industry to:

• Boost clean energy.
• Reduce reliance on international markets for energy security.

For full details, visit https://www.ofgem.gov.uk.

Ofgem has closed its consultation on new guidance aimed at improving governance arrangements for energy supply licensees. The proposals, published on 30 January 2025, seek to enhance financial resilience and ensure robust decision-making across the retail energy market. Key measures include:

• Independent oversight and better management of conflicts of interest.
• Greater transparency in governance structures.
• Updates to Standard Licence Condition (SLC) 4A on operational capability and SLC 28C on milestone assessments, requiring suppliers to demonstrate governance arrangements that support growth plans.

The regulator favors a principles-based approach but warns that prescriptive rules may follow if outcomes fall short. These steps respond to lessons from supplier failures during 2021–22, aiming to reduce market instability and protect consumers. Stakeholders, including consumer groups and supply licensees, were invited to provide feedback before the consultation closed on 25 April 2025. Ofgem will publish responses and next steps in due course.

The UK Government’s REMA programme, launched in 2022, aims to modernise the electricity market to support a decarbonised, cost-effective, and secure power system. This 2025 summer update outlines key decisions and the next steps in delivering a future-fit electricity market aligned with the UK’s clean energy ambitions.

Key Decisions

• Retention of a Single National Market: The government has decided to maintain a GB-wide wholesale electricity market, rejecting the proposal for zonal pricing. To ensure consistency and simplicity for investors and consumers.
• Ambitious Reform Package: A comprehensive set of reforms will be introduced to:
  • Improve market efficiency.
  • Enhance coordination and strategic planning of the electricity system.
  • Support the transition to a renewables-based, flexible, and resilient grid.
• No Zonal Pricing: After extensive consultation, zonal pricing was deemed less effective in delivering value and certainty compared to a national model.

Strategic Objectives

• Clean Power by 2030: REMA is a cornerstone of the UK’s mission to become a clean energy superpower, targeting full decarbonisation of the power sector by 2030.
• Consumer Value and Security: The reforms aim to pass the benefits of renewable energy to consumers while ensuring energy security and affordability.
• Investor Confidence: By providing a stable and predictable market structure, the government seeks to attract long-term investment in clean energy infrastructure.

Next Steps

• Detailed Implementation Plans: Further details on the reform package and implementation timelines will be published later in 2025.
• Collaboration with Stakeholders: Continued engagement with Ofgem, the National Energy System Operator (NESO), and industry stakeholders will be critical to delivering the reforms.

You can read the full update here.