The rollout of smart meters is being held back by lease agreements, which put off private tenants from installing the devices, according to Smart Energy GB.
In its submission to the environment audit committee’s recently launched investigation into energy efficiency, the government-backed campaign to promote smart meters includes figures showing that take up of the devices remains lower in the private rented sector (PRS) than in other tenures.
According to most recent English Housing Survey, only 14 per cent of homes in the PRS have an electricity smart meter installed. This compares to 25 per cent of owner occupiers and 24 per cent of social rented tenants respectively.
Smart Energy GB identifies tenancy agreements, which include change of meter clauses, as a “root cause” of this mismatch in its submission.
Such clauses typically, according to the submission, prohibit tenants from tampering or interfering with their meters without the consent of their landlord.
It says this misconception that tenants need to seek their landlord’s permission to adopt a smart meter in their rental property is a key reason for the slow take up of the devices in the PRS.
This problem is compounded by “misaligned incentives” – with tenants rather than landlords enjoying the potential benefits from lower energy bills and warmer properties.
Smart Energy GB says it is currently identifying ways to raise awareness amongst landlords and tenants about bill payers’ right to have a smart meter installation as well as the benefits they can deliver.
The campaign urges the environment audit committee to explore change in the regulation of the PRS so that all such properties are fitted with a smart meter installed with an internet connection.
The Smart Energy GB submission says: “We would welcome the committee investigating the role of private landlords in acting as a barrier to the steps needed to decarbonise the UK’s housing stock. In particular, the committee may wish to explore whether a regulatory prohibition of the letting agent practice that prevents the change of meter in new tenancy agreements is necessary and whether a net zero home standard should be created, in order to drive up the level of energy efficiency measures installed in the private rented sector.”
The environment audit committee has been collecting submissions on energy efficiency to inform a series of hearings into the subject.