Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Increase understanding of smart meter geographic coverage and support households unable to install.
Recommendation
The Department has limited understanding of why smart meter coverage is lower in some areas—particularly London, rural and remote areas—compared to others. The extent of smart meter installation varies across Great Britain, from 5% in the Isles of Scilly to 69% in Chesterfield as at March 2023. Installation rates in London are 43%, some way below the 57% being achieved across Great Britain. The Department thinks this is due to the challenges of installations in blocks of flats (where it is more difficult to place meters and in-home displays in sufficient proximity to each other), and also because installers cost more and are less available. Remote areas such as the Highlands and Islands of Scotland also have lower coverage, as do some rural areas such as the Cotswolds. The Department says that the Data and Communications Company, which operates the central communications and data platform for smart meters, is looking into options for the 0.75% of homes that sit outside its ‘wide area network’ coverage (known as “not-spots”) for smart metering. The Department referred to the ‘few hundred thousand’ homes in these areas as located in ‘not-spots’. However, we also note that some suburban areas such as the constituency of Richmond Park can have low coverage but have neither the characteristics of inner London nor rural or remote areas. Recommendation 3: The Department should set out in its Treasury Minute response how it will: a) increase its understanding of the reasons for variation in geographic coverage, and what it is doing to increase smart meter uptake in those areas that are lagging behind; b) set out how those households who are unable to install smart meters will be supported.
Government Response Summary
The government agrees and will continue to publish annual geographic progress data (next in May 2024). They are also undertaking local activities with suppliers and local authorities to improve installation processes and are rolling out new communication technologies (dual band hubs, Alternative Home Area Network equipment) and developing others to address coverage and installation challenges.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The department proactively identified geographic distribution of the rollout as an area for further monitoring; collected and published data alongside the official statistics produced ahead of the original NAO report. This provided greater insight into areas where additional focus may be beneficial. The department will continue to share updated information on geographic progress annually through its official statistics publication covering meters installed and operating at the end of Quarter 1(end of March) of each year. The next publication is expected in May 2024. The department has instigated local activities across domestic and non-domestic smart metering rollout, including working with suppliers and local authorities to improve the end-to- end appointment and installation process in local areas. This includes increasing our understanding and tackling of geographically-specific challenges and opportunities – including ensuring sufficient local installation capacity, solutions to parking constraints in local areas etc. The deployment of dual band communications hubs and Alternative Home Area Network equipment addresses communications issues between smart metering equipment within premises and following successful trials this summer are now being rolled out at scale. Other technologies currently in development (for example, solutions that use consumer broadband) will improve effective coverage to premises and continue to increase the availability of smart meters to households and small businesses beyond the networks current 99.3% coverage. In addition, variant meters (for example those with ability to switch loads or support three phase supply) are being deployed to premises that require them. Industry is also working on solutions for installing smart meters where there may be insufficient space (for example, crowded meter rooms and cupboards).