NEWS

Following a consultation, the government has outlined the next phase of the smart meter rollout. Under a new framework starting in 2026, suppliers are expected to take action to get the rollout finished by 2030. Suppliers will be required to take ‘reasonable steps’ to get there. 

This is less straightforward than it sounds, however. ‘Reasonable steps’ leaves a lot of room for interpretation at a time when delivery is getting harder, and service expectations are rising.

In this article, we’ll look in more depth at the new framework and whether the industry can indeed complete the rollout by 2030.

The new framework

The current rollout framework ends in 2025, with a new structure taking over from 2026. Suppliers are still expected to install smart meters, but the approach is changing. Rather than meeting rigid targets, suppliers must take ‘reasonable steps’ to complete the rollout by 2030. Targets will still exist, but with more flexibility to reflect different operating conditions.

This reflects a shift in policy thinking. The government now recognises that the rollout is a challenge. Some properties are harder to reach. Some customers are harder to engage. Technical constraints still exist. Coverage is already high in many areas. The focus is widening beyond volume to include system value and data quality.

That shift is most visible in the growing focus on businesses. Energy use in the non-domestic sector is more variable, but it’s also more useful for system planning. Improving data in this segment delivers clearer benefits for forecasting and network management. 

However, while the direction is clear, the language is not. The term ‘reasonable steps’ sets an expectation without defining the threshold.

‘Reasonable steps’ in the real world

The flexibility built into the framework creates a problem. Suppliers are expected to deliver progress, but there is no precise definition of what counts as enough. 

The constraints that already exist do not disappear with new targets:

• Limited workforce capacity for installations
• Connectivity issues that prevent meters from operating in smart mode
• More complex installations in certain property types

Customer behaviour adds another layer. Engagement remains inconsistent, with some customers delaying or refusing installation. Others have had poor experiences. 

Recent regulatory changes show how common those issues are. Ofgem has introduced automatic compensation when service standards fall short. Payments are triggered if:

• It takes more than six weeks to install a smart meter
• The supplier misses an appointment
• The supplier fails to provide a resolution plan for a fault within five working days

These rules exist because delays, failed visits, and slow responses happen often enough to require intervention. But it means that suppliers are now working in two directions at once. They must continue installations, but also improve service standards at every stage. Installations now require more effort, and suppliers must spend more time resolving issues properly.

The question is, does ‘reasonable steps’ take these constraints into account?

What’s next for the rollout?

The next phase of the rollout depends on where progress originates from. The government’s framework shifts focus towards overall system value, not just volume. 

The framework points suppliers towards higher-value installations. Not every meter delivers the same benefit. Greater focus is likely to fall on non-domestic customers and higher consumption sites. Business energy use is more variable and has a stronger impact on demand patterns. Better data from this segment supports forecasting and network management.

There is also a growing need to maintain what is already installed. A smart meter that stops working properly weakens the system. The framework places greater weight on keeping existing meters operating as intended, even if it creates a trade-off between new installations and maintaining the current base.

Digital infrastructure underpins all the benefits of smart meters. Smart meters rely on a functioning communications network. If connectivity fails, you lose that data. The network that links meters remains central to how the system performs. Reliability and interoperability are still issues that need to be managed.

It’s clear that this stage of the rollout will be more precise. Decisions about where to focus effort carry more weight. Success depends less on pace and more on how effectively suppliers target installations and maintain performance across the system.

Looking ahead

The 2030 target remains in place, but the path to reach it is less defined. ‘Reasonable steps’ gives suppliers flexibility, but also leaves them to decide how to deliver progress.

The rollout is entering a more difficult phase. The remaining installations are harder to complete. Expectations on performance are higher. Resources are stretched across installation and maintenance.

This raises a wider question. If each additional installation delivers less value and requires more effort, is pushing for full coverage still the right approach? It may make more sense to complete the rollout now and replace traditional meters with smart meters only at the end of their working lives. That would allow the industry to focus on maintaining system performance rather than chasing diminishing returns.

For now, the framework points in a different direction. Whether the rollout completes by 2030 will come down to execution. How suppliers prioritise their resources and manage the system in practice will determine the outcome.