The Department for Energy Security and Net Zero plans "tough new obligations" for energy suppliers to boost the long-delayed and heavily over-budget UK rollout of smart meters, while promising better support for those who have already received such a device.
"Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending," Charlotte Friel, director of retail pricing and systems at energy watchdog Ofgem, claimed in pre-prepared statement.
"But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working - this needs to change.
"We're working closely with suppliers to drive improvement, and have seen more than 600,000 faulty smart meters reconnected since last July after we opened compliance engagement. This is only the beginning - with automatic compensation, faster fixes, and improved installation standards well on the way, getting a smart meter will be quicker and easier than ever."
Asked what percentage of known-faulty or disconnected smart meters that 600,000 figure represents, Ofgem pointed The Register to a report from March which declared that around four million installed smart meters were not operating in smart mode.
To say the smart meter rollout has been troubled would not be an overstatement: the project has been continuously delayed and is dramatically over-budget with growing costs, while the meters themselves have run into a number of technical issues ranging from fictitious readings to surprise language shifts and over-reliance on older mobile networks which are in the process of being shut down - leaving some models of smart meter, estimated to total around seven million in the UK alone, with no connectivity.
Back in 2018 the National Audit Office poured scorn on the then-government's claims of the potential for huge savings on consumers' energy bills, suggesting that the rollout would only deliver a benefit of around £18 per household. Despite this, there's no sign that the new government plans to walk back the project - instead doubling-down with claims that the devices could help deliver environmental, rather than direct monetary, savings through integration with low-carbon technologies.
In an effort to turn things around, the Department for Energy Security and Net Zero has published a guidance document which walks through ten key "service expectations" - including installation with "minimal disruption," that faulty devices should be "promptly" investigated, that readings should be transmitted automatically and result in "accurate bills," and that suppliers should only remotely switch meters into prepayment-only mode "if it is safe and works for you to use this payment method."
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At the same time, the department also launched a "call for evidence" into the Clean Power 2030 project and how smart meters can be integrated with low carbon technologies "to drive efficiencies and enhance the consumer experience." A key part of that call: the issue of "installer field capacity constraints in certain locations [which] cause delays for some consumers trying to arrange installation appointments."
Finally, an open consultation has been launched into proposed "strict new obligations," which the government plans to put into place following the end of its - as-yet unmet - installation targets at the close of the year. This would include "Guaranteed Standards of Performance," initially proposed by Ofgem in May, which would offer compensation – a £40 payment – to anyone waiting longer than six weeks for a smart meter installation or whose installation was cancelled due to a lack of "necessary skills or resources," as well as for anyone whose smart meter is "operating in traditional mode for a significant length of time" due to a lack of connectivity or other fault."
Meanwhile, those living near new pylons across Great Britain are set to receive up to £2,500 off their bills over 10 years, as the government kicks off the Planning and Infrastructure Bill proposals. It said: "The plans could see eligible households save up to £250 off their electricity bill a year, receiving a £125 discount every 6 months."
Suppliers will be aided in this latter with the promise of expanded support for smart meter connectivity over a 4G mobile network, to replace existing 2G and 3G networks in the process of being shuttered, and the ability for smart meters to make use of a customer's own broadband connection rather than requiring a dedicated uplink of its own.
"These technical improvements, along with the government's new guide to smart metering, will provide reassurance to households and allow an even greater number to enjoy the benefits that smart meters bring," claimed Dan Brooke, chief executive of smart meter supplier Smart Energy GB, in support of the government's announcement, "including more control over energy use and access to flexible tariffs that can help save money."
The consultation on the government's smart metering policy framework runs through to the 3rd of October 2025; those looking to have their say can find out how on GOV.UK. ®
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