Energy UK says it is time for government to signal the need for a levy on consumers who refuse the installation of a smart meter.
The industry trade body said consumer appetite to proactively seek the installation of a smart meter had “plateaued well below the levels previously hoped”.
It also said the revised 2024 rollout deadline would not be met without any significant change to the customer obligation.
Furthermore, unless changes are made, the 85 per cent coverage target is unlikely to be achieved until after 2030 Energy UK said.
The proposals were made in its response to a government consultation on a smart meter policy framework post 2020. Its response included independent analysis from Frontier Economics.
At best, the research said, only 68 per cent of premises are likely to have a smart meter installed by the 2024 deadline.
Energy UK said both government and industry should open discussions with consumers about the implications of not accepting a smart meter.
It stressed that its suggestion of a “non-smart consumer levy” would include appropriate protection for vulnerable customers.
“Government should signal the need for the application of a pass-through consumer levy for consumers that are eligible for…. but either fail to respond to the offer of, or refuse the installation of a smart meter”, it said.
The response also proposed measures such as introducing new building regulations for all new properties to have smart meters installed, requiring the devices to be installed wherever a new electric vehicle charging point is installed and introducing a requirement for smart meters to be installed under all government/energy company based energy efficiency initiatives.
An Energy UK spokesperson said: “The collaborative efforts of the industry, working alongside government and partners, has resulted in 16.5 million smart meter installations so far with customers reporting high levels of satisfaction.
“The energy sector is fully committed to completing the rollout successfully and efficiently as a crucial step to delivering a modern energy system critical to the delivery of the net zero target.
“As outlined in our consultation response, based on independent research, we believe the current targets are not achievable without further changes. It is our shared ambition to ensure that as many households as possible can benefit from smart meters.
“That’s why we have suggested a number of proactive polices the government should implement quickly to drive greater consumer uptake of smart meters, which will be vital to ensuring the successful delivery of the programme over the next few years.”