Our manifesto pledge: We believe smart meters should be mandatory in energy retail, regulators should be supported to act for the long-term rather than pursuing populist measures and provisions for open data must be made.
The government has to take its share of responsibility for the failings in the smart meter rollout programme and stop allowing the false narrative that it is entirely down to energy suppliers. The half-hearted extension of the scheme to 2024 will do nothing to solve the fundamental problems that remain. The clear answer is to make smart meters mandatory and work together to promote their benefits and place within the net-zero journey.
Smart meters should be a key tool in the fight against climate change but instead they have become a symbol of public trust.
For too long the government has stayed silent on the issue, happy for energy retailers to soak up the criticism. Then when action did come, it was ill-conceived. Already there is talk among those in the industry, including suppliers, that the new 2024 deadline is unachievable and only presents another milestone to miss.
Research recently commissioned by Energy UK found that only 68 per cent of premises are likely to have a smart meter installed by the 2024 deadline. In its response to a government consultation on a smart meter policy framework post 2020, the trade body proposed measures such as introducing new building regulations for all new properties to have smart meters installed – a measure we believe will go some way to helping the aim of the rollout.
Energy UK went on to suggest that there should be a levy on those who refuse a smart meter. This approach has its merits but risks inflaming further negative sentiment around smart meters. Our position is that the rollout should be presented as a must and the benefits clearly explained.
Compulsory installations are not a new phenomenon in Europe and the government should look to other countries such as Italy where the devices became mandatory in 2006. Today, more than 99 per cent of electronic meters have been installed in Italy. According to the latest figures from BEIS, just 14.9 million smart and advanced meters are in operation in the UK – a mandatory rollout would help resolve the slower uptake seen in this country.
Political parties of all beliefs should have concrete proposals for the smart meter rollout. Sadly, not one of the three main political parties has specifically mentioned smart meters in their recent manifestos. This shows that the issue is not being taken seriously enough by politicians. It it was made more of a talking point among those seeking power, the public may be more inclined to accept a device.
In terms of energy regulation, Ofgem should put more effort into promoting the benefits of the devices, as opposed to simply enforcing fines on providers who do not meet their requirements. The regulator should instead build trust with consumers around smart devices. We believe this, along with better government communication, will help with the acceptance of smart.
If both Ofgem and government worked together and placed more emphasis on the benefits as opposed to the negatives, people will be more inclined to take up the devices. Education is key and with a better understanding of the benefits, from government rather than damaging national media reports, the rollout will better achieve its aims.
Currently there is major distrust among consumers regarding smart meters. Many are sceptical of the devices and this is largely due to the issues with operability as a result of some first-generation (SMETS1) devices failing to work after a supplier switch. Government must ensure the message to consumers is clear in that these issues are being resolved.