In a report published today, the Energy and Climate Change (ECC) committee urged the government to address technical, logistical and public communication issues, which have delayed the national smart meter rollout programme, to ensure the scheme is not a “costly failure”.
Committee chair Tim Yeo said: “Smart meters could generate more than £17 billion in energy savings for the country yet a series of technical and other issues have resulted in delays to the planned rollout.
“The energy industry told us that it needs the government to enable industry-wide solutions, rather than the less efficient alternative of letting each energy supplier develop its own solution.”
The committee attacked Decc for failing to resolve technical communication problems with multiple occupancy and tall buildings, or compatibility problems between suppliers and meters. It also pointed out that full engagement with the public has “had a slow start” and that there has been a “reluctance to improve transparency” by publishing the Major Project Authority’s assessments.
Following the energy secretary Ed Davey’s announcement that the date from which the Data Communication Company plans to deliver operational services had been pushed back a further four months to April 2016, MPs warned that “time is running out” on the government’s plan to install smart meters in each of the UK’s 30 million homes and businesses by 2020.
But Davey hit back at the report, insisting at a recent industry event that the rollout “is not” off-track because “the aim is to complete it by the end of the decade”.
He told Utility Week: “We had hoped that would go live in December this year, we’ve now re-planned it to April next year – so it’s a few months different – but in terms of the rollout, it’s not going to have any dramatic effect.”
But SSE warned that the report “further demonstrates that this programme is subject to continued delays”. The supplier argued that “unless action is taken, this could significantly increase the costs consumers pay”.
EDF suggested the new government “closely scrutinise” proposals that may make the programme “more efficient and robust”.
A spokesperson for the company said: “In order for the smart metering programme to be a success we must have consumers’ trust that all possible options have been explored to keep costs down.”
Smart Energy GB, the organisation responsible for leading public engagement with smart meters, agreed that the next government “will need to provide strong leadership and management” for the smart meter rollout.
Ovo Energy’s managing director of in-home technology Mel Gander said the company is “committed to rolling out smart meters with or without a government mandate”.
“However,” she said: “We have serious concerns about the current centralised communications infrastructure, which is already beset by delays and unnecessary cost. We would welcome a review of the entire programme, to simplify the process and ensure it is as cheap as possible for customers.”
Energy companies first began to install smart meters in 2011, with a full rollout expected to begin in late 2014. However, it was put back to autumn 2015, after bidders to provide the supporting data and communication infrastructure said they would need more time.
On Thursday, Davey announced that the date from which DCC plans to deliver operational services faced further delays, but both he and British Gas insisted this “wouldn’t affect the smart meter rollout”.