Despite a steady increase in the market-wide % of smart meters, our analysis shows a wide variation in supplier performance, with some installing as little as half of their 2023 target.
We estimate most suppliers have achieved 58-62% smart meter coverage as of 2023, and if suppliers continue to miss their annual targets, the government's goal of 74.5% coverage will not be reached by 2025.
At the 2023 rate of installs, we anticipate a market-wide coverage of around 72% by 2025.
Steady increase in market-wide % of smart meters
Since 2018 the share of smart meters in the energy industry has more than doubled, reaching ~61% of all domestic meters by Dec 23.
This is still below the government’s latest Smart Roll-Out target of 74.5% by end of 2025, which has been pushed back from 2020, with the expected outturn reduced from 80%.
Most suppliers are at risk of missing the government’s 2025 year-end target unless they increase the rate of smart meter installs.
Significant variability in supplier performance against 2023 roll-out targets
Nearly all suppliers fell short of their 2023 smart meter installation targets, and the majority installed fewer smart meters in 2023 compared to 2022.
There was a wide variation in supplier performance in 2023, with some installing as little as half of their 2023 installation target.
Utilita are the only supplier without a target due to their already high smart meter coverage - ~90% domestic smart meters as at Dec 23.
Most suppliers remain significantly behind the 75% smart roll-out target
We estimate most suppliers have achieved 58-62% smart meter coverage as of 2023. Only Utility Warehouse and Utilita are above 70%.
If suppliers continue to miss their annual smart roll-out targets, the government’s goal of 74.5% smart meters by 2025 will not be reached.
At the 2023 rate of installs, we anticipate a market-wide coverage of around 72% by 2025. With annual targets reducing each year in line with tolerance levels set by DESNZ, we expect E.On, EDF and Utility Warehouse to be able to reach 74.5% by 2025.
If you'd like to know more about smart roll-out progress, contact John de Bono or Matt Turner.
John de Bono
John performs various analyses to provide BFY and their clients with unique insights, which help to inform decision making and inspire exceptional performance.
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