As we reach the end of the latest Smart Targets framework, with suppliers publishing their final install volumes for 2025, the industry’s focus is naturally evolving. Success is not just about how many smart meters are installed - it’s increasingly about how well those meters perform over time, and how many remain operating in smart mode. 

 

The next chapter of smart metering must be laser-focussed on quality, reliability, and long-term value - ensuring smart meters stay connected, functional, and capable of delivering the full benefits they were designed to provide. 

 

Installation volumes matter, but performance matters more 

 

It’s estimated that more than 4 million new smart meters were installed in 2025 — which at first glance looks significantly higher than previous years. However, our analysis of industry data suggests that a large portion of reported installations include smart-to-smart replacements, where an existing smart meter is removed and replaced. 

 

While replacements are sometimes necessary, we do not consider meters coming off the wall as a marker of progress. Much like a doctor over-prescribing a medicine to give a patient a perceived remedy, smart meters are too often removed as a perceived ‘fix’ when the meter is not working even if this does not address the causal issue.  Every unnecessary replacement represents additional cost, avoidable disruption for consumers, and an impact to the environment. The industry’s shared goal should be to address root cause problems and focus on maintaining the meters already installed. 

 

Smart meter health is improving - and that’s the real win 

 

Encouragingly, the industry is making meaningful progress in improving smart meter performance. 

 

Since mid-2024, over 900,000 smart meters previously not operating in smart mode have been restored, and the proportion of meters not operating as smart has fallen to approximately 8.3% by Q3 2025, down from around 10% the previous year. 

 

This trend matters. A smart meter only delivers value - accurate billing, real-time usage data, flexible tariffs, and grid efficiency - when it remains connected and fully functional. Prioritising diagnostics, remote fixes, and targeted maintenance can help ensure meters stay smart, rather than being replaced unnecessarily. 

 

Myth-Busting: Most smart meters aren’t faulty 

 

There is still a misconception that smart meters are frequently faulty. In reality, fault rates across the industry remain very low, and many issues can be resolved without removing or replacing a meter. By investing in better monitoring, proactive maintenance, and right-first-time installations, the industry can reduce avoidable replacements and improve outcomes for both consumers and suppliers. 

 

Reaching the final third: The next industry challenge 

 

As the smart meter rollout continues, engaging the final third of consumers is expected to be one of the most challenging phases. These households and businesses often face more complex circumstances - from property type and connectivity constraints to lower awareness or confidence in smart technology. 

 

But improvements are underway- from smarter maintenance and better meter performance to clearer standards and enhanced customer protections - the industry is creating stronger foundations to build confidence, drive engagement, and deliver better outcomes. 

 

New regulations raise the bar for service standards 

 

The recent update to the Guaranteed Standards of Performance (GSoP), shortly to be extended to include smart meters, provides greater clarity on expected service levels across the market. 

 

This regulatory shift formalises what consumers should expect when booking appointments, resolving faults, or managing meter-related issues. It also introduces financial compensation when these standards are not met, strengthening accountability and reinforcing the need for efficient, well-managed smart meter operations. 

 

Importantly, meeting these standards should not lead to more meters being removed. Instead, it should drive smarter triage, faster fixes, and better customer experiences. 

 

Smart meters unlock real consumer and system benefits 

 

According to Ofgem’s latest annual State of the Market report, more than 40 million smart meters had been installed across Great Britain by September 2025 - of which 70% are installed in domestic properties, alongside strong uptake in the non-domestic sector. 

 

Smart meters play a critical role in enabling: 

• Time-of-use and EV tariffs, helping consumers shift usage and lower bills 
• Energy flexibility, supporting a more resilient electricity network 
• Decarbonisation, by enabling smarter energy consumption 

 

Beyond efficiency and flexibility, smart meters can be a vital tool in supporting vulnerable households and consumers in fuel poverty.  By enabling accurate bills, clearer usage insight, and access to smarter tariffs and support schemes, smart technology can help people better manage their energy and avoid unexpected costs. While adoption of time-of-use tariffs is rising – reported by Ofgem as increasing by 2.8% by mid-2025 - there is still significant opportunity to help more households and businesses unlock the financial and environmental benefits of smart energy use. 

 

The next phase: Quality, collaboration, and smarter outcomes 

 

As the industry looks ahead to the future of smart metering frameworks, the focus must shift from just volume to value. 

 

That means: 

• Keeping meters on the wall wherever possible 
• Improving smart mode performance 
• Reducing unnecessary replacements 
• Working collaboratively across suppliers, networks, and service providers 

 

A bumper year for smart meters shouldn’t just mean more installations - it should mean more reliable meters, better consumer experiences, and smarter energy outcomes for everyone.