Smart meters should be made mandatory for all consumers if the UK is to hit its rollout targets and achieve net zero, the boss of Utility Warehouse has said.
Stuart Burnett, who has served as the multi-utility retailer’s co-chief executive since 2021, made the comments during an interview with Utility Week in which he raised concerns about the impact of the lack of uptake of the devices.
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.
Utility Warehouse has just under 70% of its customers on smart meters, well above the national average. Yet Burnett warned about the intense difficulties both his company and the wider sector will face in trying to get devices installed in the remaining UK households.
He said: “We’re at the point now, in that leadership position on the smart rollout, of finding it increasingly difficult to get engagement from that remaining 30% of households. Either because you have got some households who are conscientious objectors or they are actively opposed to smart meters for whatever reason.
“Or you have got people who are just very disengaged with the market and they are just not either able or willing to embrace it.”
Arguing the case for a mandate, Burnett likened the situation to the digital switchover which saw the transition from analogue television – a process where consumers had no choice.
“They mandated the switchoff of analogue TVs a number of years ago for digital, why can’t they do that here? I know they have slightly changed some of the time frames for this but they are mandating the end of being able to buy combustion engine vehicles and they will, to a large extent, for gas boilers as well why can’t they do the same again with traditional meters in order to enable us to move onto smart?”
Utility Week questioned whether mandating smart meters was feasible, especially considering the recent announcement from prime minister Rishi Sunak in which he made clear the government should not interfere too much into people’s lives when it comes to net zero.
In response, Burnett said: “The prime minister’s announcement was more about not forcing the high costs of these technologies on financially stretched households. Smart meters, however, are not only free, but they help households to manage and reduce their energy bills.
“It’s ultimately a decision for the government on whether they make smart meters compulsory. But as we’ve seen, the longer the rollout goes on, the harder it is to convince less engaged customers of the benefits of having one, and the higher the costs of the rollout which get passed onto customers’ bills.
“That’s why we think it should be mandatory for every household to have a smart meter, so we can speed up the transition to a smart grid, drive energy efficiency and help cut carbon emissions.”
Smart meter reporting requirements
Burnett’s call for a mandate comes as Ofgem is proposing to change its smart meter reporting requirements.
Previously, retailers that supplied both domestic and non-domestic customers had a single annual installation requirement that reflected both components of their portfolio. This meant they could meet their requirement through any combination of domestic and non-domestic installations.
Earlier this year the government raised concerns that suppliers were “deprioritising” their non-domestic smart rollouts. In July it confirmed new rules so that in 2024 and 2025 mixed portfolio suppliers will be set separate domestic and non-domestic installation requirements.
In a consultation which launched on Friday (22 September) Ofgem confirmed its proposals to align its reporting requirements with the new domestic and non-domestic Targets Framework for 2024 and 2025.
Additionally, the Department for Energy Security and Net Zero has confirmed that in 2024 and 2025 qualifying installations carried out in gas only premises will have an additional weighting and count as equivalent to 1.5 installations.
“This additional weighting has been brought in to reflect the additional time taken to carry out these installations which could be more prevalent in 2024 and 2025. Currently our reporting does not capture this information,” Ofgem added.
A full interview with Burnett will feature in an upcoming Utility Week digital edition, available exclusively to members