Dear Sam,
Thank you for your letter dated 3 March 2026 regarding remedial funding associated with Radio Teleswitch (RTS) meter replacements and the RTS phase-out. I apologise for the delay in replying to your correspondence.
As always, I welcome Consumer Scotland’s continued engagement on RTS and your efforts of raising awareness of the RTS phase-out and the need for consumers to seek a replacement meter.
Remedial funding
You are right to highlight the challenges faced by a small number of households where the replacement of an RTS meter necessitates additional remedial works within the property. We recognise that, while suppliers are not obligated to undertake such works, the costs involved can be significant for consumers and are not always foreseeable. We have, throughout the RTS replacement programme, challenged suppliers to cover some or all these costs and it is encouraging that most large suppliers are providing support for remedial works. However, we do recognise that there is variation in the level of support offered across suppliers.
On the point of a targeted fund, Ofgem has been actively exploring options to address this issue. Specifically, whether a targeted funding arrangement could be developed using the independently administered Voluntary Redress Fund, delivered by an external organisation. This work has focused on the feasibility of establishing a fund that could support affected vulnerable consumers indirectly. For example, by enabling eligible charities to apply for grants aimed at assisting households impacted by the RTS phase-out.
As you note, this work has been complex, reflecting the need to ensure any arrangement complies with government procurement requirements and provides appropriate assurance over value for money and consumer outcomes. We recognise the frustration caused by the time taken to reach
clarity and the uncertainty this creates for affected consumers. We are proactively working towards the establishment of a remedial funding scheme, this remains a priority area of work which is continually progressing. In the meantime, we continue to require suppliers to treat consumers fairly in line with their licence obligations and to take reasonable steps to support
vulnerable consumers who may face remedial costs associated with RTS meter replacement.
Regional phase-out timings
A spreadsheet detailing the timings and approximate quantity of RTS meters scheduled for switch off in each Local Authority across Scotland has been appended to this correspondence. Please refer to the attached Excel file for further information. If you require further detail do let us know.
Ofgem monitors the phase-out at a meter point level, meaning that suppliers must provide key information on the status of every one of their RTS meters. This includes information about a consumer’s Priority Services Register (PSR) status, whether the consumer has engaged with the supplier, whether they have refused the exchange, and whether they have had their heating and/or hot water impacted. Many issues that appear are resolved within less than 24h. This is because we requested suppliers to provide us with a series of assurances that they would be operationally capable to respond to emergency situations in any area of the country should they arise. Whilst
this is welcome, we are still monitoring closely the status of individual meters and supplier response efforts.
Supplier readiness and replacement activity
I agree with the importance of accelerating RTS meter replacement activity now that winter has passed and phase-out activity has recommenced. Ofgem is continuing to challenge suppliers robustly on their plans and performance, through monitoring and regulatory pressure, and to reinforce the clear expectation that replacement activity should be scaled up over the coming months and we are encouraged to see an uptick in planned meter replacement appointments. This is essential to minimise the number of households or businesses still reliant on RTS ahead of the final switch-off and to reduce the risk of disruption to consumers.
Ofgem has consistently acted where suppliers have been slow in rolling out smart meters with some of the largest energy suppliers paying redress after failing to meet smart meter targets in previous years. We have been clear with suppliers that failing to perform at an acceptable level in terms of RTS meter replacements will be taken into consideration when we assess their wider smart meter rollout performance and action will be taken in line with our compliance and enforcement guidelines.
We would welcome the opportunity for Ofgem and Consumer Scotland to continue this dialogue as well as discuss further RTS matters in a meeting, either virtually or in person, at our Glasgow office or at one of your offices in Glasgow or Edinburgh. Please do inform us of your or another appropriate colleague’s availability in the coming weeks.
Once again, we value Consumer Scotland’s role in representing the interests of consumers in Scotland and more widely, and we remain committed to collaborating closely with you and colleagues as the RTS phase-out progresses.
Yours sincerely,
Charlotte Friel
Director of Retail Pricing & Systems