Citizens Advice has been publicly calling for an extension for over a year and last week’s news means the government finally recognises that reality. It’s been an open secret within the energy industry that the deadline was never going to be met.
We know that extending the deadline will not solve everything. The critical question now is what government, suppliers and the wider energy industry are going to do with this additional time – 2024 is still an ambitious target that requires firm targets.
The rollout represents a once-in-a-lifetime opportunity for suppliers to visit nearly every home in Great Britain and offer detailed energy efficiency advice. Up to this point, the compressed timeline has meant some suppliers were prioritising getting meters installed as fast as possible over the consumer experience.
The result was aggressive selling techniques, rushed installations and people not understanding how to get the most out of the technology.
We’re all paying for the smart meter rollout through our bills, though if people can use smart meter data to make their homes more energy efficient, smart meters should pay for themselves.
The government’s cost-benefit analysis now quantifies more of the benefits stemming from consumer behaviour change up until 2034. But many of the savings and the financial benefits from the technology will only happen if people know how to get the most out of their smart meters and change their behaviour accordingly.
This means the way energy companies engage with their customers – explaining how it works, giving tailored energy efficiency advice – and the ways customers use the information they get from their smart meters, will be even more fundamental to the success of the rollout.
Giving people a great customer experience is what all companies should strive to do all the time, isn’t it? This should happen when a smart meter is installed but shouldn’t stop there. It should also include making sure the smart meter and in-home display are both working, providing accurate bills and giving a good payment experience for prepayment meter customers.
The rollout has been beset by technical problems. The extension gives a window in which challenges for the programme, such as enrolment and adoption, delivering Alt-HAN and offering dual-band comms hubs, can be delivered.
Resolving these problems is essential to making sure that when people are offered a smart meter, that offer is a credible one. There is little point offering people a smart meter if they can’t have one or it won’t work where they live. Persisting with this approach will confuse consumers.
As well as a credible “offer”, the government and companies should communicate honestly about the options – smart meters are fast becoming the only type of meter available. This makes it even more important that the value and benefits of having smart meters are understood.
The new cost-benefit analysis highlights the increasingly high costs of reaching people who don’t already have a smart meter. The consultation about how to promote the rollout after 2020 is a chance for fresh thinking and innovative ideas on how to effectively reach people and explain the benefits.
It’s also an important and timely opportunity to rethink how to engage with consumers in vulnerable circumstances. Close working with local community groups will be essential to ensure these consumers are not left behind and are supported – not only to get a smart meter but to also make the best use of it.
Giving us data to make our homes and the energy system more efficient is a vital part of smart metering. They are also integral to the modernisation of this country’s energy infrastructure. In order to reach net zero by 2050, and to be ready for innovative new technologies in our homes like electric vehicles, smart appliances, products and services, people will need a smart meter.
When we called for the rollout to be extended, we made clear our concerns that a tight timeline would lead to a worse installation and user experience. By extending the deadline, industry, government and suppliers have a chance to finally get this process right. It’s critical that they do.