The government introduced a new target framework for smart metering on 1 January 2022, running for four years to 31 December 20251. It replaced the previous licence obligation on energy suppliers, which had required them to take "all reasonable steps" to install a smart meter at all domestic and small non-domestic premises by 31 December 20211.
Under the framework, energy suppliers have individual minimum annual installation targets for how many smart meters they must install each year2. The targets are calculated separately for domestic and non-domestic buildings and are subject to agreed tolerances1. Failure to achieve the annual installation targets is a breach of a supplier's licence, and Ofgem can take enforcement action against the supplier1. The framework was introduced to drive progress towards an eventual goal of 100% coverage1. Ofgem, in its August 2021 review of the domestic supply market, said that from 1 January 2022 a four-year framework with annual installation targets for suppliers would be in place3.
"The Government introduced a new target framework for smart metering on 1 January 2022, which runs for four years to 31 December 2025"
The briefing also set out what the framework does not do. There are no provisions in the Energy Bill that would allow anyone to enter a property by force to install a smart meter, and consumers have the right to refuse one1. The Energy Ombudsman states that there is currently no requirement for suppliers to install a smart meter on request, though a householder who wants one can contact their supplier to discuss availability in their area2. Under their licence conditions, suppliers are required to take all reasonable steps to install a smart meter where a meter is fitted for the first time or where an existing traditional meter needs to be replaced due to a fault2.
The briefing projected that 74.1% of meters would be smart meters by the end of 20251. A later government consultation, published in August 2025, put the end-of-2025 requirement at 74.5% of relevant domestic premises in Great Britain, at which point the existing Targets Framework comes to an end4. That consultation also reported that 3.5 million smart meters were operating in traditional mode across Great Britain at the end of March 2025, representing 9% of all smart meters4.
| Item | Figure |
|---|---|
| Framework start | 1 January 20221 |
| Framework end | 31 December 20251 |
| Projected share of meters smart by end of 2025 | 74.1%1 |
| End-of-2025 domestic requirement | 74.5% of relevant domestic premises4 |
| Smart meters in traditional mode, end March 2025 | 3.5 million, 9% of all smart meters4 |
Why it matters for households
The framework changed how suppliers are held to the smart meter rollout, from a general duty to a set of annual numerical targets backed by licence enforcement1. For a household, the practical position is unchanged: installation is not compulsory, and the right to refuse remains1. What the targets do affect is the pace at which suppliers approach homes, and the pressure on them to keep installed meters working, since a meter that loses smart functionality counts against the service a household receives.
Smart meters offer two-way communication, sending readings to the supplier and receiving information, which supports accurate billing rather than estimated bills and access to time-of-use tariffs2. The Energy Ombudsman notes that some tariffs are only available to smart meter customers, including some of the cheapest on the market1. For a home's energy independence, the value lies in the data: near real-time consumption information through an in-home display, and the ability to use flexible tariffs that shift cost away from peak hours. Where a meter stops communicating, that visibility is lost, and the Ombudsman has said it may not be able to require a supplier to correct signal issues in the short term2.
What happens next
The framework runs to 31 December 20251. The government's August 2025 consultation proposed a 2030 obligation on energy suppliers to complete the domestic rollout, a requirement to submit annual deployment plans, and a strengthened operational licence condition, with the consultation closing on 3 October 20254. Under those proposals, the existing Targets Framework would cease to have effect from 1 January 2026, with no further annual installation targets set for suppliers, and the first deployment plan would be submitted by 30 June 20264.
Sources4 cited
- Subject:, researchbriefings.files.parliament.uk
- Resolve Your Smart Meter Disputes | Energy… | Energy Ombudsman, energyombudsman.org
- CfEC_review_2021_publication_final.pdf, ofgem.gov.uk
- Smart Metering Policy Framework – Post 2025: consultation, assets.publishing.service.gov.uk