Smart meters to cost UK billions: 2G switch-off means replacing 12-13M

The UK’s planned shutdown of 2G and 3G mobile networks threatens the communications links in an estimated 12-13 million smart meters. Although the government announced the network phase-out in 2021, older cellular meters continued to be installed until 4G models began arriving in late 2024. 3G has already been withdrawn, and operators plan to turn off 2G between 2029 and 2030, ahead of the 2033 deadline. The replacement work could cost about £4 billion, with the expense ultimately adding to household energy bills.

The cost divides between newer SMETS2 meters, for which communications modules can be replaced, and roughly seven million older SMETS1 units, whose cellular hardware is built in and which generally require complete replacement. Upgrading SMETS2 meters is estimated at £1.3-1.4 billion, while replacing SMETS1 installations could cost £2.1-2.45 billion at £300-350 each. Some meters would have been renewed anyway, but network closures force the timing. The impact on SMETS2 meters is concentrated in central and southern Britain; northern units use a different radio network, while SMETS1 replacements affect the whole country. The government describes the move to 4G as a planned upgrade. A connectivity company behind the estimate promotes an alternative radio standard, while warning that a future 4G shutdown could eventually require another replacement cycle.