Pressure is mounting on the government to mandate smart meters, with the country’s biggest supplier now calling for the technology to be made obligatory.
British Gas owner Centrica is the latest firm to throw its weight behind mandatory smart meters. It follows calls from Utility Warehouse chief executive Stuart Burnett, who last week told Utility Week that a mandate is needed on smart meters for the UK to achieve its net zero goals.
Centrica’s support for a smart meter mandate is revealed within Energy UK’s Empowering people report which offers “industry’s vision for a customer-centric energy market”.
Within the report, Centrica group general counsel and company secretary Raj Roy says that completion of the smart meter rollout requires a “move from voluntary adoption towards a mandatory rollout backed by broader incentives and obligations, as well as a public awareness campaign to overcome the real-world obstacles facing the smart meter rollout”.
He adds: “The overall policy framework and rollout model must be revised to deliver near universal penetration of smart meters as soon as possible.”
According to the latest government figures at the end of June 2023, there were over 33 million smart and advanced meters in Great Britain in homes and small businesses. In total 58% of meters operating were smart or advanced meters.
Also quoted within the report, EDF managing director for customers Philippe Commaret stresses the importance of completing the smart meter rollout.
While Commaret stops short of calling for a mandate, he warns that “there is a risk the rollout will remain incomplete” without “a fresh approach from government”.
He adds: “Smart meters are a prerequisite for household’s transition to net zero. We’re more determined than ever to deliver smart meters to our customers, but most customers who want one, now have one.”
Energy UK also stops short of calling for a mandate within its recommendations, however agrees that “the current approach to the rollout is not working”.
The report adds: “There are real barriers: the smart network is not yet at full strength; the spread of skilled engineers across the country is patchy; and, perhaps most importantly, we are running out of customers who actively want to switch.
“As the rollout continues the number of non-smart households will diminish, but be comprised of increasingly unenthusiastic customers in hard-to-install properties, and it is important industry and Government can have a constructive dialogue on a new approach.
“Meanwhile, we need to ensure the data framework operating in the background of the smart meter infrastructure serves the whole country, and is cost-effective, while continuing to be resilient and secure.”
The wider report makes a series of recommendations on how to increase competition within the energy retail market. They are broadly split into three categories:
- Customers must be supported and protected as the market evolves.
- Regulation must balance supplier obligations with incentives for competition, investment and innovation
- Customers must benefit from smart flexibility
Daniel Portis, deputy director at Energy UK, said: “After a continued focus on increasing competition and driving down prices to unsustainable levels, the volatility in international energy prices has exposed fundamental flaws in the retail market design, resulting in outdated mechanisms to support customers, a lack of innovation, and suppliers exiting the market.
“The future paints a different picture. One in which energy suppliers not only provide an essential service, but one in which people will benefit from greater choice, from how they minimise their bills through to how and when they decarbonise their homes and benefit society as a whole with a more efficient system.
“Energy UK and our members are excited by this vision. Innovative, flexible products and services are already available and benefitting homes across the country, but changes need to be made to ensure all customers can reap the rewards.
“By working together with Government and the regulator we can create an energy market that is fair, resilient and competitive, and fundamentally works for customers.”