Guidance

Smart meters (extension of rollout)

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary

Smart meters are helping millions of consumers to manage their energy use so they can be even more energy efficient and save money on their bills.

This measure extends, from 1 November 2028 to 1 November 2033, the period within which the Secretary of State for the Department of Energy Security and Net Zero can exercise existing powers to amend licence conditions and associated codes, under Section 88 of the Energy Act 2008. It also extends, by the same 5 years, the period during which the Secretary of State can exercise existing powers in the Electricity Act 1989 and the Gas Act 1986 to add new licensable activities relating to smart meters and be notified of or veto the whole or part of a proposed transfer of a smart meter communication licence.

Why are we legislating?

The measure extends the end date of government powers to direct the smart meter rollout, set supplier obligations regarding the rollout and operation of smart meters, and introduce consumer protections from 2028 to 2033. This aligns with the 2030 policy framework for smart metering^{[footnote 1]}, which sets out plans to complete the rollout by the end of 2030 and transition industry parties to the 4G communications network by 2033.

Primary legislation is required to amend the existing powers set out in the Energy Act 2008, Electricity Act 1989 and Gas Act 1986 - the absence of which from 1 November 2028 would be highly likely to hinder the rollout of smart meters. Without these powers, government would be unable to maintain and further develop smart metering policy and regulation necessary for effective industry delivery, to maximise benefits of the rollout and protect consumers across Great Britain.

What are the government’s objectives with this measure?

A 5-year extension to the end date of these smart metering powers will allow the government to continue developing smart metering policy and regulation in the best interests of consumers, against which energy companies can plan, invest and deliver a national upgrade that is helping to reduce energy bills.

How will this measure deliver the objectives?

The measure preserves the government’s statutory powers to oversee and direct the smart meter rollout, ensuring effective consumer protections. Section 88 is used to amend licence conditions for smart metering and establishes obligations for gas and electricity suppliers. The extension will enable government to adapt the regulatory framework to future changes in the energy market and ensure smart meters continue to provide benefits such as accurate billing, energy savings, and increased access to flexible tariffs that can help reduce household energy costs.

Data from smart meters also helps networks and energy providers manage the grid more efficiently and to make more informed investment decisions. Overall, smart meter-enabled flexibility will enable greater use of renewables and reduce our reliance on imported fossil fuels, giving us greater control of our energy security. Driving the smart metering programme to completion by the end 2030 and the transition to 4G communications by 2033 will continue to catalyse capital investment, employment across Great Britain and energy industry innovation.

Significant consumer benefits will accrue from further installations of both gas and electricity smart meters. Domestic smart meters, together with the provision of data, are estimated to reduce consumption by 3% for electricity and 2.2% for gas (credit customers) and 0.5% for gas (prepayment customers). After all costs, the smart meter rollout is set to deliver a £6 billion net benefit.

1. DESNZ (2026) ‘Smart metering policy framework post 2025: government response’ ↩