Ofgem opens compliance engagement with six largest suppliers on smart meter obligations

Ofgem opened compliance engagement with Great Britain's six largest suppliers in July 2024 to review in greater detail why some smart meters are not operating in smart mode and how this may be addressed¹. The engagement covers British Gas, EDF, E.ON, Octopus, OVO and ScottishPower¹. Ofgem states that the vast majority of smart meters in Great Britain are operating in smart mode¹.

Under the smart meter rules and supplier obligations, energy suppliers must take all reasonable steps to ensure that smart meters automatically send them gas and electricity meter readings, which Ofgem calls operating in smart mode¹. Ofgem publishes the percentage of smart meters operating in smart mode for suppliers with over 150,000 customers¹. Its figures for 30 June 2024, the period covering the opening of the engagement, are set out below.

*includes Bulb and Shell¹

Ofgem says a smart meter that is not operating in smart mode will still record energy usage accurately, and the householder will still be able to take manual readings¹. It lists reasons a meter might not operate in smart mode, including that it loses connection with the supplier, loses connection after a change of supplier, or has been installed without being connected to the national communication system¹. Ofgem directs householders to contact their energy supplier to discuss the issue, adding that there may be some issues a supplier cannot resolve¹.

"In July 2024 we opened compliance engagement with Great Britain's six largest suppliers"

The Department for Energy Security and Net Zero has since reported that 3.5m smart meters were operating in traditional mode across Great Britain at the end of March 2025, representing 9% of all smart meters². It states that the percentage of smart meters operating in traditional mode has been gradually reducing since autumn 2024 as a result of actions taken by suppliers³. Its consultation, published on 8 August 2025, refers to Ofgem's compliance engagement initiated against six large suppliers in July 2024 under the existing Supply Licence Conditions².

Why it matters for households

A smart meter in traditional mode still measures gas and electricity accurately, but it does not send readings to the supplier automatically, so a household may need to submit manual readings instead¹. Ofgem states that smart meters operating in smart mode provide real-time information on energy usage, enable more accurate bills and give access to more flexible tariffs¹. Those functions are the basis on which a household can monitor its own consumption and take part in time-of-use arrangements, so a meter that has fallen back to traditional mode limits what a home can do with its own energy data. Ofgem notes that some faults may be beyond a supplier's ability to resolve¹.

What happens next

The government's consultation on the post-2025 framework proposed strengthening the smart metering Operational Licence Condition, a 2030 obligation on suppliers to complete the domestic rollout, and a requirement for annual deployment plans². It proposed that meters be back working in smart mode no later than 90 days from the date suppliers are first aware². The consultation closed on 3 October 2025². The existing Targets Framework, which required suppliers to deliver smart meters to 74.5% of relevant domestic premises by the end of 2025, comes to an end at that point². The government has said that in 2026 the Data Communications Company will launch a Virtual WAN service so that, with consumer consent, broadband can be used to connect homes without WAN coverage to the national communications network². It also cites the switch-off of 2G and 3G mobile services by the end of 2033².

Sources3 cited

1. Smart meter performance | Ofgem, ofgem.gov.uk
2. Smart Metering Policy Framework – Post 2025: consultation, assets.publishing.service.gov.uk
3. Smart metering policy framework post 2025: Consultation document - GOV.UK, gov.uk