NEWS

The UK smart meter rollout has now reached a point where scale is no longer the main question. By the end of September 2025, 70% of meters sitting in homes and small businesses were smart. That’s more than 40 million installed devices across the UK.

At this level of coverage, the energy system has access to enough data to deliver the benefits of smart meters:

• More accurate forecasting
• Better network management
• Lower carbon emissions

The latest figures show installation rates reducing, with 680,000 meters installed by large suppliers in Q3 2025. Rather than signalling failure, this slowdown signifies that the rollout can move into a new phase, where the focus shifts away from how many meters are installed to how well they perform. 

In this article, we’ll look in more detail at the Q3 figures and what they mean for the industry. 

Expansion vs functionality

70% smart meter coverage delivers meaningful benefits to the energy industry and consumers alike. Generators and network operators can already use smart meter data to understand demand patterns, manage load more effectively and support the transition to a lower-carbon energy system. Consumers no longer need to take manual meter readings and can take advantage of smart meter-only tariffs. The rollout should now focus on less rapid expansion and more on the reliability and usability of the data smart meters generate.

There is a significant problem with smart meters installed in homes and businesses that do not function properly. Rather than communicating with the supplier, they sit ‘dumb’ and operate in ‘traditional’ mode. 

Looking more deeply at the Q3 2025 figures, coverage for domestic smart meters is actually 64%. It only rises to 70% when smart meters running in traditional mode are included, which shows how many devices are installed but not fully functional. Non-domestic premises have slightly lower coverage at 59%, or 62% when traditional mode is factored in. All in all, that’s around 3 million smart meters that aren’t delivering the benefits.

Regarding the rollout, the most straightforward installation jobs have already been completed. The properties without smart meters are the ones that are harder to reach or require more complex work. At this stage, the marginal benefit of pushing installation volumes higher is smaller than the benefit of improving the performance of the meters already deployed.

The traditional mode problem

The rise in malfunctioning smart meters has become a significant concern. Why can’t they deliver smart functions even though they sit in homes across the UK? Are they unreliable? It’s a growing issue without easy answers, and the industry has new binding obligations to reduce the number quickly.

In a move towards greater accountability, suppliers will be required to restore a meter to full smart mode within 90 days of becoming aware that it is running in traditional mode. 

The industry also recognises the risk created by the phase-out of the 2G and 3G mobile networks. Meters that rely on these older connections could lose functionality as these networks end, adding to the existing 3 million already affected.

4G Communication Hubs

The Data Communications Company is taking steps to protect the network. It is ramping up deployment of 4G Communication Hubs to increase Wide Area Network coverage. These hubs are vital for areas with weak connections and will become even more important as older mobile infrastructure is retired.

The switch to 4G hubs supports the long-term stability of the system. Without them, more meters would lose connectivity as 2G and 3G close down. The hubs help maintain the flow of data that underpins all the benefits of smart meters.

This work is time-sensitive. The number of malfunctioning meters could grow faster than new installations if the industry does not stay ahead of the mobile network changes. If this happens, it could stop the rollout entirely.

Looking to the future

At 70% coverage, the UK’s smart meter rollout is already delivering meaningful value. The energy system has the data it needs to support better forecasting, more efficient networks, and lower-carbon outcomes. The priority now should be not adding volume for its own sake, but making sure every installed meter works as intended.

By focusing on installation quality, reducing the number of meters operating in traditional mode and strengthening communications through 4G hubs, the industry can protect the value of the existing rollout. Getting this phase right will matter more to the system than hitting any single headline installation target.