From the outset, the UK’s smart meter rollout has not gone smoothly. From issues with the technology to a shortage of functional devices, energy suppliers are up against it to meet the government’s 2020 deadline.
Despite ongoing issues, the target for installation has yet to be moved. Suppliers who fail to comply by the end of 2020 could face intrusive investigation or even fines from Ofgem.
The end result? Customers are left with smart meters that don’t work, that don’t deliver what’s promised and which are generally a big letdown. And with plenty of publicity around how much the smart meter rollout is costing the consumer, the industry risks destroying consumer confidence in what would be a very useful technology.
Turning the nation off smart metering
As long ago as 2016, consumer research from Citizens Advice showed that people felt misled on the benefits of smart metering. The biggest complaint by far was the lack of communication regarding the loss of functionality of the SMETS1 (first generation) meters when a customer switched supplier.
Now with millions more devices installed it seems consumers, while satisfied with the installation process itself, are still struggling with a lack of communication from suppliers over the reality of smart meter technology.
The Citizens Advice research also found that only 27 per cent of householders were aware that they could lose functionality if they switched supplier, despite the problem being widely recognised throughout the industry.
Installations, but at what cost?
Technical problems with second generation SMETS2 devices have led to a shortage in smart meters over the past few weeks. As a result, Foresight Metering has told suppliers to slow down their rollout programmes in order to avoid letting customers down on pre-booked appointments.
However, with the pressure on to get more meters into homes, suppliers are unwilling to slow things down and risk being non-compliant. Instead, the Telegraph revealed recently, suppliers are planning to continue installing SMETS1 devices, despite being told not to install these any more from 15 March.
It is well documented that SMETS1 devices will “go dumb” following a supplier switch, and while connecting them to the Data Communications Company (DCC) is hoped to fix the issue, this will be rolled out slowly, with only the first 32 per cent of devices being migrated in May.
It was also reported that Eon has lost 14.5 per cent of its customers amid anger over its insistence about installing smart meters.
Customers who do not want to have a smart meter fitted feel they are being pressured into taking one anyway. With no legal requirement to have one fitted, it seems strange that suppliers are allowed to do this, and undoubtedly sends mixed signals to consumers.
But to avoid missing deadlines and imposed fines from the regulator, energy firms are being left with little choice but to offer financial incentives for customers to install smart meters.
Consumers paying the ultimate price
Smart Energy GB has also come under fire for an advert that was deemed “misleading” by the Advertising Standards Authority. The Daily Mail has reported that Smart Energy GB’s star-studded adverts, featuring the likes of Ainsley Harriot, Twiggy and Maxine Peake, are costing in excess of £50 million a year, far higher than the governments initial estimate of £87 million for the entire six-year campaign.
Funded by energy bodies, any money Smart Energy GB spends on advertising is ultimately paid for by the bill payer. Why would such expensive campaigns even be allowed when they do not tackle the underlying problem with smart meters, which is that the public simply don’t believe that they work?
The more energy firms are pushed to complete installations before the 2020 deadline, the more they risk alienating consumers from the smart meter revolution altogether. Having a non-functional smart meter in the home is almost certainly worse than not having one at all, so doesn’t it make sense to give suppliers some breathing room to get it right first time?