The progress on rolling out smart meters is too slow and not enough has been done to convince the public of the benefits they offer, the government has been told.
The Public Accounts Committee (PAC) released a report, warning that not enough has been done to ensure the success of the smart meter rollout, outlining how consumers with traditional meters are less interest in having a smart meter; how bad practice last winter of forced switching has put people off having one installed; and that suppliers under pressure from government-imposed smart meter targets can put pressure on consumers, who then feel threatened by contacts and correspondence from suppliers to have one installed. The committee is therefore calling for a strategy review to drive demand.
Further findings from the committee included concerns around built-in obsolescence of smart meters already installed – 3mn were noted as not working properly as of March 2023, while components for an estimated 7mn will have to be replaced because they will lose functionality when 2G and 3G mobile communications networks are closed. This will leave billpayers likely facing substantial costs to make these upgrades. It also noted consumers who are older, male, on high incomes or homeowners are those likely to have smart meters, suggesting certain, often wealthier consumers are disproportionately benefitting from them.
It went on to make a series of recommendations, calling on the Department for Energy Security and Net Zero (DESNZ) to work with Smart Energy GB to review its public engagement strategy for smart meters; for DESNZ to update its evidence base on the benefits consumers are actually receiving and further explore how to maximise the benefits of the smart meter network for all consumers; and for DESNZ to show how it will increase its understanding of the reasons for variation in geographic coverage of smart meters – London, rural and remote areas have low coverage in particular – and detail how households unable to install smart meters will be supported.
It also is advocating for Ofgem to greater consider its approach to regulating suppliers on the rollout and the shift to net zero on a wider basis, and for both DESNZ and Ofgem to set out how what they are planning to do to ensure suppliers assign more importance than they currently do to replacing smart meters no functioning properly, to set out a timetable for replacing the communication hub element of smart meters set to lose functionality once the 2G and 3G mobile networks are switched off, and outline measures to ensure suppliers use future-proofed technology in all new smart meter installations.
Finally, DESNZ should report programme costs and benefits to Parliament annually, as well as progress of crucial success factors, and then show how it’s using this information to take decisions on the future of the rollout – including when to close it.
