Search

Ofgem consulted on RTS-specific supplier licence conditions with a no worse off tariff provision

Ofgem has consulted on new licence conditions for energy suppliers covering radio teleswitch meter replacements, including a provision that consumers be left no worse off on tariff.

A newspaper on a kitchen table beside a model of rules and regulation

Ofgem has consulted on plans to introduce new RTS-specific licence conditions for energy suppliers, the Parliamentary Under-Secretary of State for Energy Security and Net Zero, Miatta Fahnbulleh, told the Commons on 18 June 2025. The conditions would include a provision that suppliers must take all reasonable steps to provide a tariff that leaves their consumers "no worse off" than under their existing arrangement as a result of an RTS meter replacement1. Ofgem will publish its response to the consultation shortly1.

The radio teleswitch service uses radio signals to switch older electricity meters between different tariffs, such as peak and off-peak, and can also turn heating and hot water systems on and off at set times of the day1. It relies on infrastructure introduced in the 1980s that is due to be switched off as it reaches the end of its operational life1. The phased approach to switch-off was agreed with relevant industry parties on behalf of energy suppliers1.

As of 30 May 2025, 314,935 RTS meters remained in premises1. The minister said the pace of replacements by industry had been too slow for years, and that the Department had stepped in to ensure a managed and more controlled start to the phase-out from 30 June1. The phase-out will begin with a very small number of homes and businesses in carefully targeted local areas, with the Government and Ofgem monitoring supplier readiness1.

"my Department has stepped in to ensure that there will be a managed and more controlled start of the radio teleswitch service phase-out from 30 June"
Miatta Fahnbulleh, Parliamentary Under-Secretary of State for Energy Security and Net Zero, Hansard, 18 June 20251

The minister said she would continue to meet Ofgem and Energy UK on a fortnightly basis to review progress, with a particular focus on Scotland, where over 100,000 RTS meters are installed, as well as remote and rural areas1. In most cases replacement will involve fitting a smart meter, which can work in the same way as an RTS meter, with automatic peak and off-peak rates and the ability to turn heating and hot water systems on and off1. Households and businesses will be contacted by their supplier well ahead of any phase-out activity in their area1.

Why it matters for households

RTS meters are commonly paired with off-peak arrangements such as Economy 7 and Economy 10, and in some homes the same signal controls when heating and hot water run. A meter that loses the radio signal without a replacement in place can leave a household on a single rate, or with heating and hot water that no longer switch at the expected times. The proposed licence conditions are aimed at the tariff side of that change: the "no worse off" provision would require suppliers to take all reasonable steps to offer a tariff that does not leave a consumer worse off than under their existing arrangement after replacement1. The rules that govern what suppliers must offer are set out in the tariff rules and consumer protections, and the obligations that apply when a meter is exchanged are covered in smart meter rules and supplier obligations.

For a household, the practical question is whether the replacement meter supports the same time-of-use pattern as the old one. A smart meter can replicate automatic peak and off-peak rates and timed control of heating and hot water1, which is what preserves the shape of an existing off-peak arrangement. How time-of-use pricing works on a smart meter is explained in smart meters and time-of-use tariffs. The background to the programme, including what suppliers are expected to do before switch-off, is set out in RTS meters: what your supplier must do before the switch-off and Radio Teleswitch tariffs and the RTS switch-off.

The minister said suppliers must fulfil all their legal obligations to customers and that the Government would work with Ofgem to hold them to account1. Ofgem's role in that oversight is described in Ofgem: what the energy regulator does and what it covers.

What happens next

The controlled start of the phase-out is dated from 30 June 2025, beginning with a small number of homes and businesses in targeted local areas1. Ofgem's response to the consultation on RTS-specific licence conditions is due shortly; no publication date has been reported1. Suppliers will continue contacting consumers to book replacement appointments1.

Sources1 cited
  1. Radio Teleswitch Service Switch-off - Hansard - UK Parliament, hansard.parliament.uk