Britain’s smart meter programme – more needs to be done

Britain’s smart meter programme has failed to hit targets and secure public support, the parliamentary Public Accounts Committee (PAC) has reported.

In a new report the Committee highlights that since the rollout of smart meters was first conceived in 2008 with a planned completion date of 2019, the programme is only a little more than half completed – with 57% penetration as of March 2023.

In that period the deadlines have been pushed back three times and the targets reduced from “all homes and small businesses” to have smart meters by the target date to the current 74.5% of homes and nearly 69% of small businesses to have them by the end of 2025.

There also appears to be marked disparities in terms of both geography and demographics.

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For example, the installation rates are lower in London as well as in the remote and rural areas, although largely in these latter due to the limitations of the communications technology to link the meters to the central network infrastructure.

Uptake also tends to be lower among the young, females, those on low incomes and private renters, whereas older, males, those on higher incomes and homeowners are more likely to have smart meters.

In addition, other concerns highlighted are the number of smart meters not working properly, around 3 million or 9% at March 2023, and the upcoming obsolescence in those already installed with the loss of functionality when the 2G and 3G mobile communications networks are shut down.

Reports of forced switching onto smart meters last winter also are thought to have had a negative impact and the evidence for their energy saving impact is old and dated from the period 2015 to 2018.

Dame Meg Hillier, chair of the Committee, commenting on the report said the smart meter programme’s vision of access and support for every household to control their energy efficiency remains a distant one.

“The government must now get onto the front foot and explain how it is going to sell this troubled programme to the public – and how it will successfully deliver during a cost of living crisis for those it ought to benefit the most.”

Recommendations for Britain’s smart meter programme

The Committee offers are series of recommendations, including a review of the public engagement strategy to ensure it drives demand for the rest of the smart meter programme and an updating of the evidence base on the benefits consumers are actually receiving, as well as further assessment of how to maximise the benefits.

The Department for Energy Security and Net Zero also is recommended to increase understanding of the reasons for variation in geographic coverage, as well as express what it is doing to increase smart meter uptake in those areas that are lagging behind and to set out how those households that are unable to install smart meters will be supported.

Ofgem should consider how its approach to regulating suppliers on both the rollout – and in relation to net zero more widely – takes account of the need for them to engage their customers to promote behaviour change. Furthermore, Ofgem should set out what will be done to ensure suppliers assign more importance than currently to replacing those smart meters not functioning properly.

Finally, the Department should report the programme costs and benefits to Parliament on an annual basis and set out how it is using this information to inform decisions on the future of the rollout, including when it will bring it to a close.