News & Events

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.

20 November 2025 – Ofgem has opened a statutory consultation under the Energy Act 2023 to establish a harmonised prioritisation process for modifications across all energy industry codes. This initiative marks a significant step in the ongoing energy code reform programme, aimed at improving governance and aligning code changes with strategic policy objectives.

The consultation seeks stakeholder feedback on proposals to standardise how code modifications are prioritised, ensuring consistency and transparency across the sector. Ofgem’s approach is designed to support the introduction of the Strategic Direction Statement (SDS) and facilitate the transition to reformed governance arrangements.

Key Elements of the Proposal

The consultation focuses on four core policy areas:

• Prioritisation Process – A unified framework for ranking code modifications.
• Criteria and Categories – Clear definitions for assessing urgency and impact.
• Governance – Oversight mechanisms to ensure fair and efficient decision-making.
• Implementation – Transitional arrangements using powers granted under the Energy Act 2023.

Accompanying the consultation are detailed guidance documents and proposed code text changes (Annexes B–L), along with a notice outlining the legal basis for these reforms.

Why It Matters

Industry codes govern critical aspects of the UK energy system, from market operations to infrastructure development. With increasing complexity and a growing number of modification proposals, a harmonised prioritisation process is seen as essential to manage resources effectively and deliver strategic outcomes, including the transition to a low-carbon economy.

Who Should Respond

Ofgem is inviting responses from:

• Code administrators and parties
• Central system delivery bodies
• Consumer groups
• Other stakeholders and the public

Responses must be submitted by 12 January 2026 via email to industrycodes@ofgem.gov.uk.

The consultation covers all designated codes and qualifying documents, including:

• Balancing and Settlement Code (BSC)
• Connection and Use of System Code (CUSC)
• Grid Code
• Distribution Code & DCUSA
• Retail Energy Code (REC)
• Smart Energy Code (SEC)
• Uniform Network Code (UNC)
• System Operator Transmission Owner Code (STC)
• Security and Quality of Supply Standard (SQSS). [ofgem.gov.uk]

Next Steps

Following the consultation, Ofgem will review feedback and publish a decision on implementation. Non-confidential responses will be made publicly available to ensure transparency.

For full details and access to consultation documents, visit Ofgem’s official page. [ofgem.gov.uk]