The UK’s smart meter rollout is in danger of grinding to a halt as suppliers say they have exhausted “the low hanging fruit” of people who actively wanted the devices.

According to the National Audit Office (NAO), suppliers are now calling for new policies such as mandating smart meters for new homes.

Just 57%, more than 32 million, of meters in Great Britain are now smart but just under a tenth of those are not working properly. Stories in the press of the problems and expense of meters not working have put many people off asking for them.

On three occasions the UK government delayed the deadline for the completion of the rollout, first to the end of 2020, then 2024, and then 2025. In February 2023, the government launched a consultation on plans to have smart meters installed in 80% of homes and 73% of small businesses by the end of 2025.

The Department for Energy Security & Net Zero (DESNZ) has made recent progress in its rollout of smart meters, but it’s slower than planned and DESNZ faces problems in meeting its latest set of targets, says the report from the NAO, the public spending watchdog.

The government wants to see all homes and small businesses using smart meters to help achieve net zero targets and save households and small businesses money.

“The government has made recent progress in rolling out smart meters across Great Britain,” said Gareth Davies, head of the NAO. “The rollout is now at a crucial point, and the department should ensure it has robust information on both the total costs and benefits of smart meters to make decisions from an informed position to maximise value for money. DESNZ must now work with suppliers to get the programme on track, for the benefit of millions of consumers and small businesses and government’s wider environmental goals.”

The NAO said the government and industry had overcome some of the most pressing problems facing the programme. For example, it has worked with industry to develop smart meter technology that works in more homes. The government estimates that it is now technically possible to connect a smart meter to an in-home display in 96.5% of homes, up from around 70% at the time of the NAO’s 2018 report.

DESNZ has called on suppliers to improve their performance against installation targets and invest more in rolling out devices.

To ensure the programme improves value for money, the NAO recommends the government updates data on programme costs and benefits. DESNZ and suppliers also need to work together to overcome disagreements and address the reasons that installation rates are slower than planned, says the watchdog.

Rocio Concha, director of policy at consumer group Which?, said: “Smart meters offer important benefits such as helping customers to better understand their energy usage and more accurate billing, so it’s disappointing that the government is falling behind in its smart meter rollout. Switching to a smart meter is particularly beneficial for traditional prepayment meter customers as it allows them to top up their meter more conveniently and access any financial support automatically. These customers should be prioritised in smart meter rollouts where appropriate. However, we’ve also heard reports of some people’s smart meters not working properly. It’s important that energy firms, government and Smart DCC work together to resolve these issues as quickly as possible so customers are able to get the full benefits of their smart meter.”