The existing smart meter Targets Framework ceases to have effect from 1 January 2026, with no further annual installation targets set for suppliers1. The framework, which set minimum annual installation targets for energy suppliers, was introduced on 1 January 2022 and ran for four years1. Under it, suppliers were required to have delivered smart meters to 74.5% of relevant domestic premises in Great Britain by the end of 2025, at which point the framework comes to an end1.
The change is set out in a government consultation on the smart metering policy framework after 2025, published on 8 August 2025 and closing on 3 October 20251. The consultation proposes amendments to supply licence conditions, including a 2030 obligation on energy suppliers to complete the domestic rollout and a requirement to submit annual deployment plans1. The first deployment plan would be submitted by 30 June 2026, and the annual milestones in the plan would become binding from 1 January 20271. The consultation applies to the gas and electricity markets in Great Britain; responsibility for energy markets in Northern Ireland lies with the Northern Ireland Executive's Department for the Economy1.
"From 1 January 2026, the existing 'Targets Framework' will cease to have effect (with no further annual installation targets set for suppliers)"
Separately, the consultation addresses smart meters that are not operating as intended. There were 3.5 million smart meters operating in traditional mode across Great Britain at the end of March 2025, representing 9% of all smart meters1. The consultation proposes strengthening the Operational Licence Condition, including a requirement for meters to be back working in smart mode no later than 90 days from the date suppliers are first aware1. It follows Ofgem compliance engagement initiated against six large suppliers in July 2024 under the existing Supply Licence Conditions1.
| Item | Detail |
|---|---|
| Framework introduced | 1 January 20221 |
| Framework ends | 1 January 20261 |
| Domestic rollout target under old framework | 74.5% of relevant domestic premises by end of 20251 |
| Proposed completion date | End of 2030, domestic premises1 |
| First deployment plan due | 30 June 20261 |
| Milestones binding from | 1 January 20271 |
Non-domestic meters are not in scope of the proposed 2030 obligation or the deployment plan proposals; at the end of Q1 2025, 63% of non-domestic meters were smart or advanced meters1. A further consultation on policy levers for the non-domestic sector beyond the current rollover was to follow later in 20251. The consultation also notes that the Data Communications Company will launch a Virtual WAN service in 2026, so that, with consumer consent, broadband can connect homes without wide area network coverage to the national communications network for smart metering1. It records the planned switch-off of 2G and 3G mobile services by the end of 20331.
Why it matters for households
The end of the Targets Framework changes the mechanism that has driven supplier installation activity since 2022. Annual installation targets are replaced, under the proposals, by a single completion obligation for 2030 and annual deployment plans, with binding milestones from 20271. For a household that has not yet had a smart meter fitted, the practical driver shifts from a supplier chasing an annual percentage to a longer dated obligation, and the pace of any offer is not set out in the consultation.
For households that already have a smart meter, the proposals on meters operating in traditional mode are the relevant part. A meter in traditional mode is one where the supplier cannot obtain remote readings as expected, so it needs to be read manually, or where the consumer cannot access their energy information across the home area network, including updated tariff information on a consumer device1. The proposed 90-day recovery requirement is aimed at returning such meters to smart mode1. Remote readings and in-home display access are the functions that let a household see its own consumption without waiting for a bill, which is the basis for any decision about shifting load or checking a tariff.
The Virtual WAN proposal concerns homes without wide area network coverage, where broadband could carry the smart metering connection with consumer consent1. Coverage gaps and the 2G and 3G switch-off by the end of 2033 are both noted as factors in the communications arrangements that smart meters depend on1.
What happens next
The consultation closed on 3 October 20251. The first deployment plan under the proposed arrangements would be submitted by 30 June 2026, and annual milestones would become binding from 1 January 20271. The government has not reported the outcome of the consultation or a final decision on the licence condition amendments.
Sources1 cited
- Smart Metering Policy Framework – Post 2025: consultation, assets.publishing.service.gov.uk