20
Conclusion
Seventy-Second Report - Update on the r…
Accepted in Part
Consumers are only guaranteed to receive the benefits available from being able to monitor their energy usage via an in-home display for a year. After one year, if the device breaks the energy supplier currently has no obligation to replace it.65 Ofgem said it encourages suppliers very strongly to replace …
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Consumers are only guaranteed to receive the benefits available from being able to monitor their energy usage via an in-home display for a year. After one year, if the device breaks the energy supplier currently has no obligation to replace it.65 Ofgem said it encourages suppliers very strongly to replace any in-home displays that are not currently working for whatever reason, although the Department accepts that after one year this would be at the discretion of the supplier and the consumer may be charged for a replacement.66
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Government response AI summary
The government agrees with the committee's observation, stating it is developing and seeking agreement on voluntary good practice principles for In-Home Display provision beyond the initial 12-month period and has not ruled out further regulation, partially addressing the lack of obligation to replace them.
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HM Treasury
22
Conclusion
Seventy-Second Report - Update on the r…
Accepted in Part
The government first announced its intention to mandate suppliers to install smart meters in 2008, and energy suppliers have been rolling out smart meters since 2012.70 The Programme has therefore been active for more than a decade, and although the Department has produced seven cost-benefit analyses, it has not done …
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The government first announced its intention to mandate suppliers to install smart meters in 2008, and energy suppliers have been rolling out smart meters since 2012.70 The Programme has therefore been active for more than a decade, and although the Department has produced seven cost-benefit analyses, it has not done so since 2019.71 The Programme is in the Government Major Projects Portfolio of the largest and highest- profile programmes across government.72
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Government response AI summary
The government agrees to share annual cost and benefit information with Parliament by Summer 2024 to provide visibility on the smart metering rollout. However, it does not explicitly commit to producing a full new cost-benefit analysis since the last one in 2019, instead referencing the …
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HM Treasury
23
Conclusion
Seventy-Second Report - Update on the r…
Accepted in Part
At our evidence session, the Department could not provide an up-to-date figure for the Programme’s costs and benefits. It considers that both costs and benefits will have increased since 2019, given: a) lower installer efficiency and delays during COVID-19 increasing costs generally, together with higher than anticipated labour costs; and …
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At our evidence session, the Department could not provide an up-to-date figure for the Programme’s costs and benefits. It considers that both costs and benefits will have increased since 2019, given: a) lower installer efficiency and delays during COVID-19 increasing costs generally, together with higher than anticipated labour costs; and b) HM Treasury revisions to carbon prices and the increase in retail energy costs following increasing demand for energy after the pandemic and Russia’s invasion of Ukraine.73 We highlighted that the scale and size of the Programme, and length of time it will run for, meant the Department should be providing more regular information for Parliament to assess its progress. The Department acknowledged our arguments for reporting more data (including cost data) regularly to Parliament, while noting that it would want ministerial consent before agreeing to do so.74 64 Correspondence submitted by Head of Future Retail Markets, Energy UK, dated 6 July 2023 65 Q 122 66 Qq 122–123 67 Q 56; C&AG’s Report, para 2.20 68 Q 119 69 C&AG’s Report, para 2.20 70 C&AG’s Report, para 3, Figure 1 71 Qq 89–90 72 C&AG’s Report, para 5 73 Qq 19, 88–90; C&AG’s Report, paras 15, 2.4 74 Qq 91–92 Update on the rollout of smart meters 17
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Government response AI summary
The government acknowledges the committee's finding that up-to-date cost and benefit figures are not available, and, treating this as a recommendation, commits to sharing this information with Parliament on an annual basis by Summer 2024. However, detailed plans for bringing the programme to a close …
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HM Treasury