Britain faces an estimated £4 billion smart-meter replacement program as mobile operators retire the 2G networks used by millions of household energy devices. Between 12 million and 13 million meters could lose their communications link unless they receive a new module or are replaced, according to a report by connectivity company Wirepas described by The Register.
The problem stems from the design of meters installed during the long-running national rollout. Early devices relied on 2G or 3G cellular service to send readings to suppliers. Although the government announced in 2021 that both generations would be phased out by 2033, meters using those networks continued to be installed until 4G-capable versions became available near the end of 2024. Britain’s 3G networks have already closed, and the remaining mobile operators plan to switch off 2G earlier than the 2033 deadline.
BT’s EE plans to begin its closure in May 2029, Virgin Media O2 in the summer of that year and Vodafone in spring 2030. That timetable turns an eventual technology refresh into a coordinated infrastructure project with a relatively firm deadline.
The costs differ by meter generation. Many newer SMETS2 installations can be updated by replacing their communications hub. Wirepas estimates that work at £1.3 billion to £1.4 billion before the price of the replacement hardware itself is included. About seven million older SMETS1 installations have cellular communications built into the meter and generally require the entire unit to be changed. At an indicative £300 to £350 per installation, that portion is estimated at £2.1 billion to £2.45 billion.
The exposure is not identical across Britain. The SMETS2 communications replacement primarily affects central and southern regions, while northern installations use a separate long-range radio network. Older SMETS1 meters create a nationwide issue. Some units would have been changed through ordinary asset renewal, but the network shutdown fixes the point at which remaining incompatible equipment can no longer operate as designed.
The Department for Energy Security and Net Zero described the move to 4G as a planned upgrade and said smart meters already help consumers monitor energy use and bills. The department’s position emphasizes continuity of service; the Wirepas estimates emphasize the scale and cost of achieving it.
The estimate also comes from a company with a commercial interest in alternative internet-of-things connectivity. Wirepas promotes NR+, a technology based on the DECT-2020 New Radio standard, as a possible approach. Its figures therefore describe a substantial planning risk rather than a final government budget. What is clear is that mobile-network retirement has placed a deadline on upgrading a large installed base of household equipment.
