Suppliers can still hit smart targets, but installation is only half the battle

The most recent DESNZ data shows 65% of domestic meters are now smart, with another ~5m installs needed before Dec-25 to hit the government’s target of 74.5% coverage. But installation isn’t the only hurdle - over 3.7m meters are still operating in traditional mode.

Q3-24 saw 700k smart meter installs, a ~3% increase from the previous quarter, but maintaining this pace won’t be enough to meet the coverage target. Accelerating installations over the next 12 months is critical to avoid regulatory penalties and the risk of losing customers to competitors, who are already leveraging real-time consumption data through personalised tariffs, energy-saving insights, and enhanced customer engagement. 

Of the meters already deployed, 3.7m are still operating in traditional mode, unable to provide real-time remote readings. These customers are missing out on promised benefits due to persistent issues such as technical glitches, network compatibility challenges, and delays in upgrading systems for full smart functionality. 

Below, we’ve outlined what’s needed to address smart’s two outstanding challenges: non-communicating meters, and reaching installation targets. Opportunities for improvement still exist, but suppliers should act now to prevent higher service costs from frustrated smart customers, and accelerate progress towards the coverage target.

Addressing non-communicating smart meters

Proactive correction before customers are impacted

Effective controls are essential to catch non-communicating meters early. DESNZ define meters as non-communicating after roughly 30 days, in that time suppliers may have had up to 30 attempts to get a read (depending on meter read schedule), notifying them of the non-communicating status. By leveraging billing history, communication logs, and payment schedules, suppliers can identify affected accounts and act before customers are impacted.

Strong reporting and segmentation capabilities are key to identifying which accounts need the most urgent attention, ensuring resources are allocated efficiently. A ‘tiger team’ approach – with dedicated specialists focused on recurring technical issues - can help address these cases at scale.

Billing accurately while fixing the problem

When communication issues prevent remote reads, customers may receive estimated bills, leading to frustration and complaints. Proactively addressing this with accurate billing is key, while continuing to fix the problem. This can be achieved by:

• Having strong billing controls in place to assess the accuracy of your estimation, and identify customers with repeat estimates
• Proactively contacting affected customers before the bill lands, explaining the issue and next steps to reduce confusion, potentially preventing a complaint
• Trigger immediate intervention on outlier bills, to avoid escalations and protect customer trust, as large estimated bills are a major call driver for smart customers

Overall, a robust meter read strategy, for both customer-provided and field-collected data, will ensure accurate readings during the repair process, helping to prevent further billing errors and unnecessary contact.

Making fixes efficiently

Efficient fixes are essential to minimise cost and disruption. Some issues can be corrected quickly through remote resets, without requiring a site visit. Ringfencing these issues to a specialist team, with additional smart meter skills, will allow for correction of the issue (sometimes without the customer being aware), or proactive contact to the customer to diagnose and correct the issue.

For meter replacements, suppliers face decisions on where to prioritise these cases against new appointments, as part of the broader installation and meter read strategy. Regardless, a robust ‘keep warm’ strategy will ensure customers are informed and reassured throughout the repair process, reducing unnecessary contact.

Accelerating to reach the 74.5% coverage target

Targeted campaigns for disengaged customers 

Smart meters promise accurate billing, real-time energy insights, and potential cost savings - but these benefits haven’t won over everyone. Many customers are held back by privacy concerns, misconceptions about installation challenges, or simply a lack of clear information.

There are still opportunities to educate customers on the advantages of smart meters. Thoughtful, targeted campaigns that use straightforward, relatable language can help customers understand the advantages. Consistent reassurance about data security and privacy is also key.

When re-engaging customers who’ve previously expressed concerns in this area, it’s important to reiterate the strength of your cybersecurity measures. This could involve highlighting the use of end-to-end encryption, regular security audits, and a proactive approach to emerging threats.

Empowering teams to demonstrate regulatory compliance

A continued focus is needed on empowering teams to track regulatory changes, align processes with deadlines, and proactively address any delays. Effective tracking mechanisms should be in place to monitor every step of the customer journey, from initial contact to installation, through to post-installation checks and troubleshooting. 

Keeping detailed records for each customer is essential too, documenting outreach attempts, installation efforts, and how objections or technical issues were addressed. 

Maximising operational efficiency to boost installation rates

Operational inefficiencies can lead to delays, increased costs, missed appointments, and dissatisfied customers. At this stage of the rollout, it’s crucial that every scheduled appointment leads to a successful installation. The hard work has already been done - making sure the process runs smoothly is key.

Full process excellence reviews can highlight pain points that are preventing appointments from becoming successful installations. For example, poor coordination between scheduling and field teams can result in installers arriving late or unprepared, forcing reschedules and incomplete installations. Similarly, miscommunication between customer service and technical teams can result in incorrect or missing equipment, further delaying installs.

These disruptions not only affect customer satisfaction but also increase operational costs, and reduce successful installations. By conducting thorough process reviews, companies can pinpoint these issues, such as inefficient scheduling, lack of real-time data, or unclear handoffs between teams, and take action to drive more successful appointments.

Now is the time to act

With a year remaining to reach 74.5% smart meter coverage, suppliers are facing increasing pressure to hit the target, alongside the persistent challenge of resolving non-communicating meters.

Failing to act in both areas risks higher service costs, regulatory penalties, and competitive disadvantage. 

When looking for opportunities to improve, ask these questions:

• Are your teams proactively identifying and addressing non-communicating meters before customers are impacted, and if so, how can you improve the speed and efficiency of these interventions?
• How can you ensure your billing processes are robust enough to prevent frustration from estimated bills, especially for smart meter customers experiencing technical issues?
• Have you conducted recent process reviews to address pain points like scheduling issues, team coordination, and equipment readiness that might be preventing appointments from converting into successful installations?

At BFY, we hold market-leading experience in billing and operational excellence, helping businesses achieve measurable improvements by simplifying processes, tackling root causes, and putting practical fixes in place.

We’re continuing to work closely with suppliers to sharpen their smart meter install strategies during this critical phase, while ensuring strong meter read and control governance. The latter contributed to savings of over £15m in a recent billing transformation, delivered by our team with an energy retailer.

For more on optimising your approach in this crucial period of the smart rollout, contact Jonathan Paton.