Recommendation 2

We are concerned that smart meters are not achieving the consumer benefits they are supposed to and are benefitting certain, often wealthier, consumers more than others. The Department’s most recent estimates of consumer energy savings are based on data from installations that took place between 2015 and 2018 (with consumption data up to 2019). These show energy reductions of 3.3% to 3.6% for electricity and 2.9% to 3.1% for gas. However, the Department needs more up- to-date data to be confident that smart meters are saving consumers money on their energy bills, as it anticipated. If consumers are older, male, on high incomes, or homeowners then they are more likely to have smart meters. Wealthier people are also more likely than less wealthy people to be able to purchase new replacement appliances (such as washing machines) if their smart meter suggests relatively high running costs of older appliances they may own. Previously, there special smart meter tariffs were available that offered lower prices, for example for off-peak consumption —owever, these have been withdrawn due to current conditions in the domestic energy market, thereby removing an incentive for smart meter installation. Recommendation 2: The Department should: • update its evidence base on the benefits consumers are actually receiving; and • carry out further assessment of how to maximise the benefits of the smart meter network for all consumers, particularly those groups currently less likely to have them to encourage them to apply for one. 6 Update on the rollout of smart meters