Smart Metering Systems (SMS) says the proposed introduction of compulsory annual installation targets for energy suppliers will help more “evenly spread” the smart meter rollout.
In a trading update released today (31 January), the smart meter installer and manager revealed its portfolio of meters grew by 44 per cent to 1.2 million in 2019.
The company referenced plans that were put to consultation towards the end of 2019 which included an extension of the rollout to 2024 and the introduction of installation milestones for each energy supplier.
At the end of the framework period, an 85 per cent coverage would be achieved.
“The BEIS consultation provides a stricter regulatory regime, albeit over an extended time period, for energy suppliers. The extension has provided energy suppliers with greater timing flexibility than before, and SMS now expects the installation profile to be more evenly spread until 2024 as a result”, the update said.
The Department for Business, Energy and Industrial Strategy (BEIS) would not confirm the proposed milestones for each supplier when asked by Utility Week.
SMS, which is currently in discussions to sell off a minority of its assets, said the total number of meters and data assets under its management increased by 19 per cent to 3.7 million.
Its financial performance for 2019 was in line with market expectations, with rental payments for meters rising by 23 per cent to £77.8 million. A majority of this (£38 million) pertained to smart meters. Traditional domestic meters accounted for £18.6 million and industrial and commercial meters for £21.2 million.
The group said its existing metering contracts are eventually expected add another £40 million to its annual rental revenues, which are indexed to inflation.
Alan Foy, SMS chief executive, said: “Through our established industry-wide partnerships and strong integrated delivery platform we are committed to creating a resilient energy infrastructure for the future, focused on delivering long-term value for all our stakeholders.
“SMS will continue to address the smart meter rollout opportunity over the extended rollout period, with focus on securing long-term inflation-linked, sustainable revenue streams supported by an ongoing cost discipline and an efficient long-term capital structure.”