Competition Law and Layered Platform Dominance Theories

1. Meaning and Regulatory Purpose

Smart meter rollout obligations are legally enforceable duties imposed principally on electricity and gas suppliers to deploy, maintain and properly operate smart metering systems. In Great Britain, smart meters form part of the transition toward a digitalised and flexible energy system. They permit automated consumption readings, more accurate billing, demand-side flexibility and improved information for consumers.

The legal framework does not merely require physical installation. Suppliers must comply with licence conditions concerning deployment planning, technical interoperability, consumer protection, data management and continued operation of meters in smart mode. Ofgem confirms that suppliers are responsible for installing smart meters in accordance with their licence obligations.

2. Statutory and Licence Framework

The rollout is implemented primarily through the Gas and Electricity Acts, energy-supply regulations, Standard Licence Conditions (SLCs), the Smart Energy Code and associated metering codes. Ofgem supervises compliance with licence obligations, while the Data Communications Company provides the communications infrastructure connecting smart meters with authorised industry participants.

The previous 2022–2025 Targets Framework required suppliers to meet binding annual minimum installation targets. That framework concluded on 31 December 2025, and the regulatory regime is now moving into a successor phase based significantly on supplier deployment plans and annual milestones.

3. Deployment Planning Obligations

Under the current framework, relevant suppliers must prepare and submit Smart Metering Deployment Plans. Ofgem's September 2026 direction operates under SLC 44 of the Electricity Supply Licence and SLC 38 of the Gas Supply Licence. It requires revised deployment plans for Relevant Period 2 onwards and establishes requirements concerning data, submission and publication of annual milestones. The current direction specifies 30 October 2026 for submission of revised plans.

These requirements transform rollout policy into measurable regulatory commitments and enable Ofgem to monitor supplier performance.

4. New and Replacement Meter Obligation

An important continuing requirement is the New and Replacement Obligation (NRO). Where a meter is installed for the first time or an existing meter is replaced, suppliers must take all reasonable steps to install compliant smart metering equipment, subject to specified exceptions.

This obligation applies to relevant domestic and non-domestic premises and prevents suppliers from perpetuating conventional metering infrastructure where smart installation is reasonably achievable.

5. Obligation to Maintain Smart Operation

Installation alone does not constitute compliance. Suppliers must take all reasonable steps to ensure installed smart meters continue operating in smart mode, including automatically transmitting meter readings.

Ofgem identifies SLC 49 of the Electricity Supply Licence and SLC 43 of the Gas Supply Licence as imposing continuing operational obligations. Thus, a meter that has lost communications functionality may generate regulatory responsibilities requiring the supplier to restore smart operation.

6. Consumer Protection and Installation Standards

Rollout activities must also comply with consumer-protection requirements. Installation arrangements should minimise disruption, accommodate relevant customer requirements and comply with applicable technical and operational standards.

For non-domestic consumers, the Consolidated Metering Code of Practice (CoMCoP) establishes minimum standards for installation, maintenance and management activities. It includes requirements relating to scheduling installations, notifying relevant charges and providing appropriate energy-efficiency information to microbusinesses.

7. Non-Domestic Rollout Obligations

The post-2025 regime introduces additional duties. From 1 January 2027, suppliers must begin communicating upcoming smart-contingent-contract requirements to non-domestic consumers. From 1 September 2027, new fixed-term contracts within scope must provide that customers have, or agree to have, smart or advanced meters installed at designated premises. Suppliers must also comply with the legally binding consumer-protection code from that date.

8. Case Law / Enforcement Example – Ofgem Smart Meter Compliance Cases

Case Name/Citation: British Gas, EDF, E.ON, Octopus, OVO and Scottish Power – Smart Meter Issues, Ofgem Compliance Case.

Facts: Ofgem examined suppliers' compliance with installation-target requirements and duties concerning meters installed but not operating in smart mode.

Legal Issue: Whether suppliers had complied with applicable smart-meter installation requirements and their continuing obligations to ensure installed meters operated properly.

Judgment: This was regulatory compliance engagement rather than a judicial judgment. Ofgem expressly stated that opening the cases did not itself establish non-compliance.

Legal Principle/Ratio: Smart-meter regulation concerns both deployment and continuing functionality; physical installation does not exhaust the supplier's regulatory responsibilities.

Significance: The proceedings demonstrate that Ofgem can actively supervise supplier performance and escalate concerns toward formal enforcement where appropriate.

9. Conclusion

Smart meter rollout obligations therefore constitute a continuing regulatory system covering installation, deployment planning, technical operation, interoperability, consumer protection, data access and regulatory reporting. The modern framework increasingly treats smart meters as essential digital-energy infrastructure rather than simply replacement measuring devices. Suppliers must consequently demonstrate not only numerical deployment progress but effective and continuing smart functionality within the wider regulated energy system.