Overview of the GOV.UK Publication

Published by the Department for Energy Security and Net Zero (DESNZ) on 8 August 2025, the report explores how domestic and non-domestic consumers respond to the smart meter roll-out, particularly regarding maintenance visits and communication hub exchanges.

Key Findings:

• Smart Metering’s Role: It is central to enabling a flexible, decarbonised power system and helping households manage energy use and reduce bills.
• Maintenance Visits: Some smart meters require future maintenance to remain in smart mode. The research identifies what encourages or discourages consumers from accepting these visits.
• Message Framing: How the maintenance visit is communicated significantly affects consumer willingness to participate. Tailored messaging improves acceptance rates.

Behavioural Insights

• Consumers are more receptive when messages emphasise personal benefits (e.g., cost savings, convenience).
• Barriers include concerns about disruption, lack of understanding, and mistrust of suppliers.
• Vulnerable groups (e.g., low-income, elderly, or disabled consumers) may need additional support to engage effectively.

Supporting Internal Materials

Several internal documents and meetings reinforce and expand on the themes in the GOV.UK report:

• The Draft Framework for smart metering support outlines eight principles for supporting vulnerable and prepayment consumers, based on early behavioural trials.
• The smart metering policy framework post 2025 consultation document sets out obligations for suppliers to complete the rollout by 2030 and improve

Overview of the Government’s Call for Evidence

Published on 8 August 2025 by the Department for Energy Security & Net Zero, this call for evidence supports the UK’s Clean Power 2030 Action Plan, which aims for clean sources to generate at least 95% of Great Britain’s electricity by 2030.

Smart meters are central to this mission, enabling:

• Consumer insights into energy usage.
• Demand response programmes that shift usage to off-peak hours.
• Smart tariffs that reward flexible electricity use—potentially saving EV users up to £900/year.

Three Key Areas of Enquiry

1. Integration with Low Carbon Technologies (LCTs)
   Exploring how smart meters can work alongside technologies like heat pumps, EV charging, solar thermal, biomass boilers, hybrid heating systems, and energy storage to improve efficiency and reduce emissions.
2. Accelerating Installations in Hard-to-Reach Areas
   Identifying barriers to installation in regions where securing appointments is difficult and proposing solutions to improve access.
3. Local Collaboration and Coordination
   Investigating how local partnerships and community-level coordination can enhance the consumer journey and increase uptake.

The UK government is consulting on a new regulatory framework for smart metering, aiming to:

• Complete the domestic smart meter rollout by 31 December 2030 (100% coverage, subject to “all reasonable steps”).
• Improve the operational performance of smart meters, especially reducing the number operating in “traditional mode” (i.e., not communicating remotely).
• Ensure a smooth transition to 4G communications before 2G/3G networks are switched off by 2033.
• Require annual deployment plans from suppliers to Ofgem, with binding milestones from 2027.

These measures are intended to support the Clean Power 2030 Mission, deliver consumer benefits, and underpin a flexible, decarbonised energy system.

Key Proposals

Obligations on Suppliers

• 100% Smart Meter Penetration by 2030: All suppliers must take all reasonable steps to install smart meters in every domestic property by the end of 2030.
• 90-Day Recovery Target: Suppliers must restore any smart meter operating in traditional mode to full smart operation within 90 days of becoming aware of the issue.
• Pre-emptive Replacement: Suppliers must proactively replace smart meters or components (e.g., communications hubs) where the Data Communications Company (DCC) signals that WAN service will end (e.g., due to 2G/3G switch-off).
• Annual Deployment Plans: From July 2026, suppliers must submit annual plans to Ofgem, detailing how they will meet installation and operational targets through to 2033. From 2027, annual milestones for new installations and pre-emptive replacements become binding.

Consumer Experience and Protections

• Guaranteed Standards of Performance: Ofgem is consulting on standards that would require compensation for consumers if installation appointments are not offered within six weeks, or if meters are not restored to smart mode within 90 days.
• Consumer Engagement: Continued national campaigns (Smart Energy GB), targeted support for harder-to-reach groups, and new guidance on consumer rights.
• Focus on Vulnerable Groups: Special attention to prepayment customers, tenants, and those in the private rented sector, where uptake lags.

Non-Domestic Sector

• The 2030 obligation and deployment plan requirements do not apply to non-domestic meters, but operational improvements (e.g., 90-day recovery, pre-emptive replacement) do. Further consultation on non-domestic rollout is planned.

Analytical Evidence (Annex A)

Cost-Benefit Analysis

• Net Present Value (NPV): The proposed framework is projected to deliver an NPV of £590m–£1,824m (2025 prices, discounted to 2026), depending on the level of smart meter coverage achieved (85–100% by 2030).
• Benefits: Include customer energy/time savings, supplier operational savings, carbon and air quality improvements, network and demand-shifting benefits.
• Costs: Mainly from equipment and installation, with a 10% optimism bias applied to account for uncertainties.
• Household NPV: Estimated at £337m–£1,024m.
• Business Impact: Monetised impacts on suppliers are -£74m to -£199m, mainly due to installation costs, but offset by operational savings.

Feasibility and Resource Requirements

• Workforce: To achieve 90% coverage and 97% smart mode operation by 2033, an average of just under 5 million smart metering activities per year is required, needing about 6,500 FTE installers.
• Flexibility: The framework allows suppliers to manage their own delivery profiles, but annual plans and Ofgem oversight are designed to prevent backloading and ensure steady progress.

Small and Microbusiness Assessment

• Most suppliers are medium or large; micro and small suppliers are exempt from some requirements (e.g., deployment plans if below 20,000 meter points), but not from the core obligations.

Wider Impacts

• Net Zero: The policy supports the UK’s 2050 Net Zero target and Clean Power by 2030 ambition.
• Monitoring: The Department for Energy Security & Net Zero will monitor rollout progress, consumer experience, and report annually to Parliament.

Legal Mechanisms (Annex B)

Electricity and Gas Supply Licence Amendments

• Rollout Duty: New and replacement meters must be smart, with all reasonable steps to achieve 100% coverage by 2030.
• Operational Requirements: Suppliers must maintain smart meters in smart mode, restore traditional mode meters within 90 days, and pre-emptively replace equipment as needed.
• Deployment Plans: Suppliers (except very small ones) must submit annual plans to Ofgem, with binding milestones from 2027.
• Reporting: Suppliers must publish milestones and progress on their websites, and Ofgem can require additional information or revisions.
• Exemptions: Micro and small suppliers (below 20,000 meter points) are exempt from deployment plan requirements.

DCC Licence Amendments

• Statement of Availability: DCC must publish dates when communication services (e.g., for 2G/3G) will end, enabling suppliers to plan pre-emptive replacements.

Definitions and Technical Requirements

• Detailed definitions for “smart connection,” “HAN,” “WAN,” “SMETS1/2,” “deployment plan,” “annual milestone,” etc., are provided to ensure clarity and enforceability.

Consultation and Next Steps

• Consultation closes: 3 October 2025.
• Stakeholder input: Sought on all aspects, including the legal drafting in Annex B, the analytical evidence, and the practicality of the proposed obligations.
• Implementation: Subject to consultation feedback, the government will publish a response and proceed with licence amendments and regulatory changes.

Summary Table: Key Obligations and Timelines

Strategic Implications

• For Suppliers: Need to invest in workforce, systems, and consumer engagement to meet ambitious targets and avoid regulatory penalties.
• For Consumers: Improved service standards, faster resolution of issues, and greater access to smart-enabled tariffs and services.
• For the Sector: Regulatory certainty to support investment, with flexibility for suppliers but strong oversight to ensure delivery.